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Nvidia v Novo Nordisk Terry Smith
John Bran
Posted: 01 October 2024 09:37:34(UTC)
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Joined: 01/09/2017(UTC)
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Why he owns one and not the other.
The interview is not about the two until the end But he comes up with solid arguments for which to own.


https://youtu.be/3jDliWH-UCk?si=qgZ44OVaQgDozJlZ

I am not a massive fan of everything he believes particularly his past views on buying growth if you need an income and selling shares for the income.. Clearly there have been fairly long periods where you would have lost out big time.
3 users thanked John Bran for this post.
Raj K on 01/10/2024(UTC), Micawber on 01/10/2024(UTC), Jay P on 01/10/2024(UTC)
Micawber
Posted: 01 October 2024 10:39:50(UTC)
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I tend to agree that if you want income then generally the best way is to buy (sensible) growth and sell shares for the income; but not always. I think it applies when world growth is positive and markets are bullish (isn't that most of the time??) but not otherwise. In bear markets, income stocks are fairly defensive. In the current developed markets, where the tide of share prices is high and 'growth' may be a little stretched, it seems to me that a better play now is to buy income while interest rates seem at last to be on a downwards path. (That is what I and wife have been doing since February, as I've posted here several times). I expect 'growth' from them in proportion. At its simplest, if central bank interest rates were, say, 5.5% and over the next two years decline to 3.5%, then a solid dividend-producing share priced at 100p where the divi was and remains 5.5p should increase in price to around 157p. That is, other things being equal, which of course they never are.

I hope that's right.
4 users thanked Micawber for this post.
ANDREW FOSTER on 01/10/2024(UTC), Helen L on 01/10/2024(UTC), Jay P on 01/10/2024(UTC), John Bran on 03/10/2024(UTC)
Johan De Silva
Posted: 01 October 2024 11:06:13(UTC)
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Joined: 22/07/2019(UTC)
Posts: 4,412

Analysis shows that growth outweighs profitability most of the time*. Safe is not going to get you growth. As Terry mentioned he was likely to have got it wrong not buying Nvidia as that is not the type of business he invests in. I would much rather be in active portfolio managed by JPMorgan. Fundsmith may manage £36bn in assets but do they have the data and insight of someone like JPMorgan that is needed to add alpha and navigate these tricky times of non-zero interest rates?

* Ted Smith, Union Square Advisers
Micawber
Posted: 01 October 2024 11:46:51(UTC)
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If you compare performance of Fundsmith with VWRL it's much the same....
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