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JayW
Posted: 02 February 2022 12:26:55(UTC)
#1118

Joined: 25/08/2019(UTC)
Posts: 358
PayPal down 17% yesterday, if FS still holds 7.49% that's a 1.27% drop in the fund's price.
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Laurence O'Brien
Posted: 02 February 2022 12:29:52(UTC)
#1122

Joined: 04/12/2014(UTC)
Posts: 943
JayW;207081 wrote:
PayPal down 17% yesterday, if FS still holds 7.49% that's a 1.27% drop in the fund's price.


Meanwhile, Alphabet is 11% up pre-market. Swings and roundabouts.
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Dan L
Posted: 02 February 2022 14:18:43(UTC)
#1121

Joined: 29/04/2018(UTC)
Posts: 804
JayW;207081 wrote:
PayPal down 17% yesterday, if FS still holds 7.49% that's a 1.27% drop in the fund's price.


I would estimate that PayPal is around 4.5% of Fundsmith as of the end of last month. Still a pretty by effect though, somewhat offset by Alphabet
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Joe Soap
Posted: 02 February 2022 17:32:12(UTC)
#1119

Joined: 24/01/2010(UTC)
Posts: 2,157
JayW;207081 wrote:
PayPal down 17% yesterday, if FS still holds 7.49% that's a 1.27% drop in the fund's price.

Oh dear. >26% down today. That's going to hurt FS very badly. I wonder if Smith is doing anything with his PayPal shares?
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Harland Kearney
Posted: 02 February 2022 19:53:29(UTC)
#1120

Joined: 23/03/2018(UTC)
Posts: 150

Thanks: 953 times
Was thanked: 242 time(s) in 103 post(s)
Joe Soap;207144 wrote:
JayW;207081 wrote:
PayPal down 17% yesterday, if FS still holds 7.49% that's a 1.27% drop in the fund's price.

Oh dear. >26% down today. That's going to hurt FS very badly. I wonder if Smith is doing anything with his PayPal shares?


He will be doing nothing I imagine, make of that what you will! I don't really know how they enter positions and if they take such drops like these as opportunities to buy (are they even, things look bleak for PayPal on guidance, though not terrible clearly market has something to say on it)

I think what is interesting on PayPal is how the stock mooned during the COVID phase and I feel like this stock (along with many who see earnings in the future) are deflating back to correct PE values, or dare I say reality. Non the less I'm sure FS holders will be taking a hit tomorrow on valuation, myself included!

I've held FS for many years but have not seen underperformance like this in its life. I wonder how things will look 6 months from now, or at the end of the year. After all, that is why we are investing, not trading based on YTD numbers.
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2 users thanked Harland Kearney for this post.
Harry Trout on 02/02/2022(UTC), ANDREW FOSTER on 02/02/2022(UTC)
mgk
Posted: 02 February 2022 21:22:22(UTC)
#1123

Joined: 04/11/2019(UTC)
Posts: 90
Facebook down 20% after reporting earnings. Ouch.
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Dennis .
Posted: 02 February 2022 21:23:29(UTC)
#1125

Joined: 26/12/2007(UTC)
Posts: 1,017

Thanks: 293 times
Was thanked: 2002 time(s) in 533 post(s)
Yes, Fundsmith is starting to look like a closet FAANG tracker but given that this group of companies represents a large proportion of the S&P500 perhaps he should be replaced with an SP500 ETF ?
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1 user thanked Dennis . for this post.
MBA MBA on 02/02/2022(UTC)
Simon TTT
Posted: 02 February 2022 22:06:47(UTC)
#1126

Joined: 26/04/2021(UTC)
Posts: 143
I don’t hold FS but always find it interesting to read about. I find it noteworthy that the fund attempted to open a new position recently but had to withdraw due to liquidity issues, then makes a couple of very liquid purchases…one of which doesn’t really make much sense in FS terms. Maybe find size is starting to get the better of the open ended format?

The more it resembles an ishares/vanguard tracker the harder that fee is going to be to justify.
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Harland Kearney
Posted: 02 February 2022 22:31:25(UTC)
#1124

Joined: 23/03/2018(UTC)
Posts: 150

Thanks: 953 times
Was thanked: 242 time(s) in 103 post(s)
mgk;207165 wrote:
Facebook down 20% after reporting earnings. Ouch.


The next Fundsmith investor meeting is going to be very interesting indeed!
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ANDREW FOSTER
Posted: 02 February 2022 22:59:36(UTC)
#1127

Joined: 23/07/2019(UTC)
Posts: 8,112

Thanks: 11351 times
Was thanked: 18208 time(s) in 5970 post(s)

Isn't Amazon reporting tomorrow?

Wonder if Terry can do a hattrick...
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1 user thanked ANDREW FOSTER for this post.
D Bergman on 02/02/2022(UTC)
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