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Rookie Investor
Posted: 01 February 2022 14:55:44(UTC)
#1110

Joined: 09/12/2020(UTC)
Posts: 2,084

Thanks: 1342 times
Was thanked: 3632 time(s) in 1416 post(s)
Interesting about Google, especially so soon after Amazon.

I hold Google, MS, Amazon, Visa as individual holdings (out of a total of about 10 single companies) and have done so for many years now. All now owned by FS (which I also hold as a core holding in mine and my parents portfolios).

I also own a core holding of PNL who themselves own Visa, MS and Google.

Happy to run this concentrated risk for now. There is an argument to be made that at seemingly high broad market valuations that one might consider being more concentrated for better prospective returns going forward.

I wonder what other two names Terry has added. If it is Nvidia then I might apply to replace Terry when he retires!
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6 users thanked Rookie Investor for this post.
Chris1986 on 01/02/2022(UTC), knock rock on 01/02/2022(UTC), Raj K on 01/02/2022(UTC), Harland Kearney on 01/02/2022(UTC), Jesse M on 01/02/2022(UTC), Jim Thompson on 02/02/2022(UTC)
Tom Mozy
Posted: 01 February 2022 16:34:47(UTC)
#1111

Joined: 09/07/2013(UTC)
Posts: 424

Thanks: 22 times
Was thanked: 839 time(s) in 281 post(s)
My guess for the 2 other names is

Adobe
Intuitive Surgical
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1 user thanked Tom Mozy for this post.
Dan L on 01/02/2022(UTC)
Andrew59
Posted: 01 February 2022 18:12:04(UTC)
#1112

Joined: 20/10/2020(UTC)
Posts: 532
Not sure what the minimum size of company TS goes for, but Adobes ROCE is 29% which is a big appeal - and its in his personal fund
Intuitive Surgical is less impressive at first glance - ROCE 15%

Not sure why hes gone for Alphabet unless its in the similar vein to his purchase of Amazon - hes looked deeper into their business model and what they have bought recently (and links to AI, metaverse etc)
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Andrew1952
Posted: 01 February 2022 19:02:25(UTC)
#1097

Joined: 06/07/2019(UTC)
Posts: 538

Thanks: 162 times
Was thanked: 631 time(s) in 294 post(s)
Rookie Investor;206205 wrote:


By far the most important driver of a stock's returns is earnings.


except that the growth funds over the last 10 years have anticipated
earnings, or growth, and the slightest hint of a slowdown knocks a big chunk off
the share price in a blink.

OTOH the pseudo gilts like utilities have been pushed to high valuations because
interest rates are so low.

I don't know why certain people are so hard on Unilever, I swapped my RDSB holding
in my SIPP into ULVR in July 2014 when Oil was high and (or because) the pound
bought $1.70. ULVR were about £24 at the time and have been up to about £50
at one point and they have doubled the dividends since 2014.
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2 users thanked Andrew1952 for this post.
Jimmy Page on 01/02/2022(UTC), Mike Jackson on 02/02/2022(UTC)
Joe Soap
Posted: 01 February 2022 19:17:18(UTC)
#1098

Joined: 24/01/2010(UTC)
Posts: 2,157
Andrew1952;206958 wrote:
Rookie Investor;206205 wrote:


By far the most important driver of a stock's returns is earnings.


except that the growth funds over the last 10 years have anticipated
earnings, or growth, and the slightest hint of a slowdown knocks a big chunk off
the share price in a blink.

OTOH the pseudo gilts like utilities have been pushed to high valuations because
interest rates are so low.

I don't know why certain people are so hard on Unilever, I swapped my RDSB holding
in my SIPP into ULVR in July 2014 when Oil was high and (or because) the pound
bought $1.70. ULVR were about £24 at the time and have been up to about £50
at one point and they have doubled the dividends since 2014.

Perhaps try reading Terry Smith's "post mortem" findings on Unilever, link below. And tell us how you think Unilever has performed against it's peer group?

https://www.fundsmith.co...ith_unilever_and_gsk.pdf
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Tom Bards
Posted: 01 February 2022 22:52:55(UTC)
#1114

Joined: 28/06/2017(UTC)
Posts: 302
I see Paypal is down 17% after hours due to latest earnings. Not great for the top holding of the fund.
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mgk
Posted: 01 February 2022 23:50:06(UTC)
#1115

Joined: 04/11/2019(UTC)
Posts: 90

Thanks: 40 times
Was thanked: 119 time(s) in 54 post(s)
Tom Bards;207011 wrote:
I see Paypal is down 17% after hours due to latest earnings. Not great for the top holding of the fund.
Google is up so let's hope he was selling down PayPal to buy Google recently!
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1 user thanked mgk for this post.
Chris1986 on 02/02/2022(UTC)
MarkSp
Posted: 02 February 2022 00:57:47(UTC)
#1113

Joined: 02/02/2020(UTC)
Posts: 2,183
Andrew59;206945 wrote:
Not sure what the minimum size of company TS goes for, but Adobes ROCE is 29% which is a big appeal - and its in his personal fund
Intuitive Surgical is less impressive at first glance - ROCE 15%

Not sure why hes gone for Alphabet unless its in the similar vein to his purchase of Amazon - hes looked deeper into their business model and what they have bought recently (and links to AI, metaverse etc)



GCP is selling well it has two major selling points

1. It isn't Amazon
2. It isn't MSFT

he now holds all three of the hyperscalers and is only missing Ali Baba Cloud for the full set :)
Google has search and andriod

What now worries me about Fsmith is the danger of regulation.
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Raj K
Posted: 02 February 2022 06:49:55(UTC)
#1116

Joined: 22/04/2016(UTC)
Posts: 2,819

Thanks: 6461 times
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I actually see it as a postivie that Terry Smith and Co are open to adapting to things. will be interesting to hear about his reasons for investing in Alphabet at the AGM.
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1 user thanked Raj K for this post.
Jesse M on 02/02/2022(UTC)
Jesse M
Posted: 02 February 2022 07:32:09(UTC)
#1117

Joined: 30/12/2020(UTC)
Posts: 1,471
Raj K;207027 wrote:
I actually see it as a postivie that Terry Smith and Co are open to adapting to things. will be interesting to hear about his reasons for investing in Alphabet at the AGM.


I agree with you on this and using recent market weakness to build positions reinforces my faith. Buy good companies, don't over pay.
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