How are people seeing the past week or twos drop in Fundsmith v other funds and in the context of what should be the long term?

I know the month isn't over yet but I think this will be the worst month since its inception.

Dare I say it, but it's done exactly what I thought it would - it's dropped as hard as other expensive quality funds that have shown far more upside over the last 3 years.

You can look at a subset of quality funds, sort them by PE ratio and that will directly reflect in their fall for the year broadly speaking.

Blue Whale, Blackrock Unconstrained; PE 35-40 odd, dropped 12% odd
Fundsmith, Threadneedle Global Focus, Rathbone Global Opps etc; PE 30-35 odd, dropped 10% odd
Cheap quality such as Artemis Global Select, Morgan Stanley Global Brands; PE 20-25, dropped 5-6%

I suppose the question you need to ask yourself is (a) does it matter? With a 10 year time horizon are you going to look back at what a fund did from 4th to 21st Jan 2022 and be bothered by it?

I theorised elsewhere that lindsell train global wouldn’t be a silver bullet in a sell off, and am happy to see I was completely wrong 😂 having left them off the list of how various things have done so far I can see they are only down 2.3% which is good going comparatively.

Don’t forget (along with us all looking at FAR too short a timescale) performance is relative to the index rather than absolute for most of us. As in if people didn’t have Fundsmith the alternative isn’t cash it’s more likely a global tracker. So these funds above are only 0.5% to 5/6% behind where people would be if more neutral. For now……

Yeah I was looking at L&G Global 100 yesterday as a time like this is when I guess it's interesting to see how passive does v active.

Nearly 30% of that fund is in Microsoft and Apple which would have me shitting bricks but the fund is down -4.99 YTD.

There's times I think it's easier to give up even trying to work it out :)

I think many of us need to go back and work out what type of investors we are.

In the short run, the market is a voting machine, but in the long run, it is a weighing machine from Ben Graham or Warren Buffett cant remember

If you are a holder of Fundsmith and a long term investor and you think the companies are good but you currently believe they might be overvalued, wait until the market or the fund corrects to a valuation that you would be more comfortable with and add some more, be patient. I assume many of you invested in it becuase you believed the way they select companies makes sense, it certainly did to me and still does. If it corrects by 10-15% you are all questioning if it is doing its job. Is this for real? Remember Smith said he looks at the value of the businesses, these share prices are beyond their control.