Fundsmith Equity fund

[Heathwood]

Hi folks,

I’m looking at options to fund a S&S ISA I’ve just set up and looking at the ever popular Fundsmith Equity. My question is, have I missed the boat? It looks to have risen sharply over the past month or two; has it got more to give?

[DoubleSix]

“Here is a piece of string... “

[Simpo Two]

DoubleSix said:

“Here is a piece of string... “

Or elastic?

[N8CYL]

Not bad really.... I think a good long term choice. Recovered to pre covid levels.

[JulianPH]

It is a good fund and Terry is generally a great fund manager.

As it is actively managed he can change the stocks as he sees fit, so the fund can't run out of steam unless the underlying stocks he holds do.

I thought he was very premature in selling Clorox and buying Starbucks though (and this did prove to be a very bad move), but his Nike purchase was spot on.

[bitchstewie]

Terry Smith is one of a few fund managers where I think if I could stomach short term volatility better than I can I'd happily give them a very large chunk of my money for the long-term.

[Sheepshanks]

N8CYL said:

Recovered to pre covid levels.

Same as markets generally.

[journeymanpro]

Sheepshanks said:

Same as markets generally.

Which market is back to those levels. Ftse and djia are miles away.

[Heathwood]

Thanks for the responses guys

Edited by Heathwood on Sunday 28th June 09:14

[bitchstewie]

Heathwood said:

Thanks for the responses guys. ??

I think the thing you should be asking is not whether Fundsmith is a good basket but whether it should be the only basket for what it's a worth

[Sheepshanks]

journeymanpro said:

Which market is back to those levels. Ftse and djia are miles away.

Sorry, badly written - I was thinking of the S&P 500 which Fundsmith is most aligned to.

I’ve got a chunk of Fundsmith - it’s done well for me but seems to have been going sideways for a while. I’ve been wondering if it’s run its course.

[JulianPH]

bhstewie said:

I think the thing you should be asking is not whether Fundsmith is a good basket but whether it should be the only basket for what it's a worth

I was thinking the same thing. A low cost global tracker (perhaps with some bond exposure) sat side by side would provide far greater diversity and allow the OP to see how the different investment approaches work in different market conditions.

He may then decide to opt for one approach or the other.

[anonymous-user]

Last May I bailed out of Woodford just in time.. put it into Fundsmith Equity
Was +15% by the end of 2019
-10% post Chinese Flu
Now back up to +17%
Pretty good i’d say

[BlackG7R]

I sold most of my Fundsmith when I got to about +17% on the rebound. Feeling a bit silly now. Having said that, if the market turns again, those additional gains could be gone in a day or two.

[ukwill]

I've seen so much noise about this fund over the past several years from people wondering if it's peaked or how it might perform in a downturn etc.

Fundsmith's strategy is amusing for it's succinct brevity:

1. Only invest in good companies
2. Don't Overpay
3. Do Nothing

I like this approach very much. Which is why I've been in it for several years and will continue to remain in it whilst this remains the funds strategy.

Everything else is just noise.

[BlackG7R]

ukwill said:

I've seen so much noise about this fund over the past several years from people wondering if it's peaked or how it might perform in a downturn etc.

Fundsmith's strategy is amusing for it's succinct brevity:

1. Only invest in good companies
2. Don't Overpay
3. Do Nothing

I like this approach very much. Which is why I've been in it for several years and will continue to remain in it whilst this remains the funds strategy.

Everything else is just noise.

Agreed, you can't knock him, he's had a consistent performance for 10 yrs now, and he's now proven that it will stand up reasonably well in a sharp downturn as well. I think I may have been a little hasty in selling mine.