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Fundsmith Performance
Jesse M
Posted: 19 September 2024 12:26:31(UTC)

Joined: 30/12/2020(UTC)
Posts: 1,471

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Moose;319478 wrote:
Terry interviewed here on Dubai Eye, must be looking from inflows from UAE

https://www.youtube.com/watch?v=HnPYg50xYZE


Another one here in ii.

I'm not a holder anymore, there's ETFs that seem to be doing a better job.

https://www.ii.co.uk/ana...smith-interview-ii532854
2 users thanked Jesse M for this post.
Raj K on 19/09/2024(UTC), Fuzzy Beats on 19/09/2024(UTC)
Fuzzy Beats
Posted: 01 November 2024 16:51:47(UTC)

Joined: 24/02/2015(UTC)
Posts: 44

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Year to date:

Fundsmith +6.9%
MSCI World +15.5%

Fundsmith heading for a fourth consecutive year of under performance versus the index.
1 user thanked Fuzzy Beats for this post.
Mike Jackson on 02/11/2024(UTC)
Mike Jackson
Posted: 02 November 2024 16:03:18(UTC)

Joined: 06/01/2022(UTC)
Posts: 23

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What an absolute dead duck this fund has become, my cash sat in the bank has performed considerably better in the last 18 months.

Old Terry's glory days are long gone and I doubt they'll ever return. Next stop the nursing home for him I think, I hope he can afford the fees, I hear they can be quite high. 😂
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Hilda Ogden on 02/11/2024(UTC)
Lee Smith
Posted: 03 November 2024 22:27:54(UTC)

Joined: 09/03/2018(UTC)
Posts: 11

Fundsmith has continued to underperform the MSCI World Index and other global trackers, as its own factsheet webpage shows. This underperformance has been going on for quite a while now, is not just a blip for several months.

What's your thoughts on Fundsmith for the months ahead?



Thrugelmir
Posted: 03 November 2024 23:52:13(UTC)

Joined: 01/06/2012(UTC)
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Lee Smith;324452 wrote:
Fundsmith has continued to underperform the MSCI World Index and other global trackers





Given the concentratiion in the indices. Hardly any great surprise. Fundsmith itself carries a below average risk rating. The potential downside is equally as important when making investment choices.
2 users thanked Thrugelmir for this post.
Guest on 04/11/2024(UTC), Dan L on 04/11/2024(UTC)
ben ski
Posted: 04 November 2024 00:32:36(UTC)

Joined: 15/01/2016(UTC)
Posts: 1,357

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If Fundsmith's strategy still works, you buy more when it underperforms – that's how investing works. It's largely underperforming because Nvidia's carrying markets – and that's just a random thing that's happening. Strategies can go through 15 years of underperformance – like value investing.

If it wasn't for the fee, it would always be as good as 50:50 whether Fundsmith outperformed over any period... But the two problems are: you don't know whether the strategy still works (so you're just performance chasing), and there's a high fee for a fund that doesn't do much..

So if you can't solve these problems, and you are just performance chasing, then as soon as relative momentum turns against the fund (vs the index) you sell the fund and switch into the index. There's nothing else you can do that makes any sense. Other than just buy the index in the first place, because you simply don't know whether a strategy's good or not. You're just going on past performance, which is largely random.

5 users thanked ben ski for this post.
Guest on 04/11/2024(UTC), AlanT on 04/11/2024(UTC), Moose on 05/11/2024(UTC), wydffart on 05/11/2024(UTC), bearcub on 06/11/2024(UTC)
Moose
Posted: 05 November 2024 13:52:06(UTC)

Joined: 30/04/2024(UTC)
Posts: 49

ben ski;324462 wrote:
If Fundsmith's strategy still works, you buy more when it underperforms – that's how investing works. It's largely underperforming because Nvidia's carrying markets – and that's just a random thing that's happening. Strategies can go through 15 years of underperformance – like value investing.

If it wasn't for the fee, it would always be as good as 50:50 whether Fundsmith outperformed over any period... But the two problems are: you don't know whether the strategy still works (so you're just performance chasing), and there's a high fee for a fund that doesn't do much..

So if you can't solve these problems, and you are just performance chasing, then as soon as relative momentum turns against the fund (vs the index) you sell the fund and switch into the index. There's nothing else you can do that makes any sense. Other than just buy the index in the first place, because you simply don't know whether a strategy's good or not. You're just going on past performance, which is largely random.



Yes if you think Mag 7 runs out of steam / corrects but want to remain invested in quality/growth - Fundsmith suddenly begins to look smart again. If things carry on as they are it will continue to lag.
Peanuts
Posted: 05 November 2024 15:13:36(UTC)

Joined: 16/02/2019(UTC)
Posts: 1,476

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Terry Smith interview today on Investors Chronicle

https://m.youtube.com/watch?v=Nqr2Nu3Ih4w
1 user thanked Peanuts for this post.
Fuzzy Beats on 05/11/2024(UTC)
Hilda Ogden
Posted: 05 November 2024 15:22:31(UTC)

Joined: 31/07/2023(UTC)
Posts: 884

Lee Smith;324452 wrote:
Fundsmith has continued to underperform the MSCI World Index and other global trackers, as its own factsheet webpage shows. This underperformance has been going on for quite a while now, is not just a blip for several months.

What's your thoughts on Fundsmith for the months ahead?




Time to sell it.
ben ski
Posted: 05 November 2024 19:42:41(UTC)

Joined: 15/01/2016(UTC)
Posts: 1,357

Thanks: 426 times
Was thanked: 3900 time(s) in 1014 post(s)
Moose;324638 wrote:
ben ski;324462 wrote:
If Fundsmith's strategy still works, you buy more when it underperforms – that's how investing works. It's largely underperforming because Nvidia's carrying markets – and that's just a random thing that's happening. Strategies can go through 15 years of underperformance – like value investing.

If it wasn't for the fee, it would always be as good as 50:50 whether Fundsmith outperformed over any period... But the two problems are: you don't know whether the strategy still works (so you're just performance chasing), and there's a high fee for a fund that doesn't do much..

So if you can't solve these problems, and you are just performance chasing, then as soon as relative momentum turns against the fund (vs the index) you sell the fund and switch into the index. There's nothing else you can do that makes any sense. Other than just buy the index in the first place, because you simply don't know whether a strategy's good or not. You're just going on past performance, which is largely random.



Yes if you think Mag 7 runs out of steam / corrects but want to remain invested in quality/growth - Fundsmith suddenly begins to look smart again. If things carry on as they are it will continue to lag.


I think the smart move is to accept that any perspective you have on the Mag7 has nothing about the market value of those businesses – it's a gamble's hunch.

I don't think Fundsmith will ever look smart with a 1% fee. WisdomTree Global Quality Dividend Growth is a good way to underweight businesses factoring in more speculative growth.

1 user thanked ben ski for this post.
Guest on 05/11/2024(UTC)
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