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Kraftwerk
Posted: 04 February 2022 16:08:15(UTC)
#1146

Joined: 07/02/2021(UTC)
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ANDREW FOSTER;207249 wrote:

When it come to the "metaverse" I literally have no idea what it actually is....I could not write it down.


Look no further than the former Deputy Prime Minister the Rt Hon Nick Clegg in literally graphic detail,

https://www.youtube.com/watch?v=2Ne7Ljd4f78
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ANDREW FOSTER on 04/02/2022(UTC)
Joe Soap
Posted: 04 February 2022 16:09:21(UTC)
#1174

Joined: 24/01/2010(UTC)
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Jesse M;207471 wrote:
Joe Soap;207469 wrote:
Dan L;207467 wrote:
Well somehow Fundsmith has survived this week and is 1% up. Not quite as good as a tracker has done but not as terrible as I thought.

We won't know the actual effect of this week until Monday. USA is still trading. But Smith's Amazon purchase seems to have had impeccable timing!

(But not as good as Steven Yiu's timing. He sold out of PayPal and Facebook just in time. But..... he also sold Amazon too just as Smith bought it... Baby with the bath water? Who knows).


Morningstar senior analyst Dan Romanoff feels Amazon is still undervalued despite the post earnings spike and are below fair value.

Thanks. That would make Amazon a classic Smith acquisition then. Buy quality, but don't over pay.
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Jesse M on 04/02/2022(UTC), Harland Kearney on 04/02/2022(UTC)
Keith Stewart
Posted: 04 February 2022 17:50:56(UTC)
#1172

Joined: 24/05/2019(UTC)
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Joe Soap;207469 wrote:
Dan L;207467 wrote:
Well somehow Fundsmith has survived this week and is 1% up. Not quite as good as a tracker has done but not as terrible as I thought.

We won't know the actual effect of this week until Monday. USA is still trading. But Smith's Amazon purchase seems to have had impeccable timing!

(But not as good as Steven Yiu's timing. He sold out of PayPal and Facebook just in time. But..... he also sold Amazon too just as Smith bought it... Baby with the bath water? Who knows).


More like sticking fingers in the wind.
In my humble opinion you would be better buying a S&P heavy global tracker like Fidelity Index World.
Fees 0.12% (with a 0.02%) rebate on Fidelity.
If every pounds a prisoner, hold it on IWeb for free basically.
Amazon, Facebook, Alphabet and Microsoft. Sound familiar?
Looks like Fundsmith holdings are beginning to mirror a US heavy global tracker.
I ain't paying 0.95% to Terry to sit in Mauritius.
Down over 10% YTD and it's 3 year performance is looking like a tracker to me.
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6 users thanked Keith Stewart for this post.
Tim D on 04/02/2022(UTC), ANDREW FOSTER on 04/02/2022(UTC), stephen_s on 04/02/2022(UTC), J-san on 04/02/2022(UTC), Bulldog Drummond on 04/02/2022(UTC), Jimmy Page on 05/02/2022(UTC)
Mr Helpful
Posted: 04 February 2022 18:54:50(UTC)
#1175

Joined: 04/11/2016(UTC)
Posts: 3,985
With Fundsmith the jockey has been creating a fuss and blaming the horses of late.

At least Nick Train takes it on the chin.
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Harry Trout
Posted: 04 February 2022 19:05:29(UTC)
#1176

Joined: 08/06/2014(UTC)
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For what it's worth I have been keeping a monthly note of the performance of all my investments against Vanguard World Index ETF VWRL on a 1 month, 3 month, 6 month, 1 year, 3 year and 5 year timeframe using Trustnet data.

The average of 12 months data (which gives a more smoothed picture) shows Fundsmith ahead of VWRL by an average of 17.6% over 3 years and 40.3% over 5 years.

The fund has never delivered a negative year, not even in 2018, and beat IA Global by 4.4% in 2021 (T class, source Trustnet)

So I'm not going to write off Fundsmith after a dodgy start to 2022 but will watch carefully and this thread is super helpful in that regard. I am eyeing the L&G Global 100 Fund for example.

Having supported Fundsmith above, I can't however get my head around paying for someone else to manage MSFT, PYPL, AMZN, GOOG, ULVR on a buy and hold basis when I hold them myself on a buy and hold basis! Does Fundsmith still have Diageo as well?

So I sold a load of Fundsmith last month - I was also wanting to move away from OEICs.

If performance improves I will be glad to top up Fundsmith to keep it Top 10 but having held on to Lindsell Train Global Equity for far too long (asleep at the wheel due to work distractions) I am keen to react more quickly to short term underperformance now.

In the meantime, hats off to Terry, made me a very fair return over 6 years and I don't begrudge the fee one little bit.
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smg8 on 04/02/2022(UTC), Neminem Laedit on 04/02/2022(UTC), Joe Soap on 04/02/2022(UTC), ANDREW FOSTER on 04/02/2022(UTC), Elland Road on 04/02/2022(UTC), Jesse M on 05/02/2022(UTC), Guest on 05/02/2022(UTC), Harland Kearney on 05/02/2022(UTC), Jimmy Page on 05/02/2022(UTC), Robin on 06/02/2022(UTC)
smg8
Posted: 04 February 2022 19:27:30(UTC)
#1177

Joined: 26/04/2020(UTC)
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Harry Trout;207516 wrote:
I am eyeing the L&G Global 100 Fund for example.




I remain conflicted on this one - the concentration at the top is 25% in Apple and Microsoft, or 40% in FAANGM.

I wonder if the performance is what is alluring. If someone said "here's a manmade tracker with 40% in 4 x US mega caps and it's done badly" I'd have very little interest which makes me think I'd only be interested because it's done well.

But it HAS done well at +73% in 3 years.

I guess if someone is really bullish on US megacaps it's a great way to get diluted exposure to them rather than owning the individual stocks. The rest of the holdings all look an interesting mix, if the Apple and MSFT positions were even say half their size I'd find it much more compelling.
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Harry Trout on 04/02/2022(UTC), Robin on 04/02/2022(UTC), Phil 2 on 05/02/2022(UTC), Tim D on 05/02/2022(UTC), Harland Kearney on 05/02/2022(UTC), Elland Road on 05/02/2022(UTC)
Harry Trout
Posted: 04 February 2022 19:50:01(UTC)
#1178

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smg8;207517 wrote:
Harry Trout;207516 wrote:
I am eyeing the L&G Global 100 Fund for example.


I remain conflicted on this one - the concentration at the top is 25% in Apple and Microsoft, or 40% in FAANGM.

I wonder if the performance is what is alluring. If someone said "here's a manmade tracker with 40% in 4 x US mega caps and it's done badly" I'd have very little interest which makes me think I'd only be interested because it's done well.

But it HAS done well at +73% in 3 years.

I guess if someone is really bullish on US megacaps it's a great way to get diluted exposure to them rather than owning the individual stocks. The rest of the holdings all look an interesting mix, if the Apple and MSFT positions were even say half their size I'd find it much more compelling.

I haven't prioritised it yet to do the full research but think it could fulfill a placeholder role for me. I could save up at say £2.5k at a time (platform transaction cost free with HL) and then build up to an economic amount to sell and buy say EQQQ or a FAANG type stock if something dipped.

More musing at this stage than serious intent I would say
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smg8 on 04/02/2022(UTC)
Robin
Posted: 05 February 2022 09:14:32(UTC)
#1179

Joined: 06/07/2009(UTC)
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I remain unsure why L&G (actively picked) Index 100 is being compared to FS with overweight to Apple and financials/oils etc (if I'm right). And BD, without a whiff of Schadenfreude, it is fair to say BG has been slapped about a bit in the last month just has FS. We all have winners and losers, it is what makes up a portfolio.

I do wonder if to an extent we're over-egging the FS pudding a little - whilst I have reduced slightly and in favour of a global tracker (about equal weight for me with FS, each around 9%) - a quick ranking on trustnet shows that of a Global group of 400 odd funds, there are over 100 funds have a worse 1m performance, over 150 worse over 3m and again around 100 worse over 6m, and it has bettered a larger number of funds over the year. I'm not sure it is end of days just yet, and it seems to have held up ok on the week considering huge hits to big holdings. I'm torn and wonder if once the dust settles we'll find that the fund has bought into some new positions (possibly Apple?) at some relatively attractive prices? On the other hand, leave it too long and you end up going down the LTGE route of living in hope (and of course LTGE having a much brighter start this year!!).

Fair to say I don't ever regret any tracker purchases I've made.
.
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King Lodos on 05/02/2022(UTC), Jesse M on 05/02/2022(UTC), Tim D on 05/02/2022(UTC), Elland Road on 05/02/2022(UTC)
King Lodos
Posted: 05 February 2022 09:37:18(UTC)
#1182

Joined: 05/01/2016(UTC)
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I suppose the way I'd put it: If you don't have a Stop Loss (a Time Stop) on underperformance, then what's to stop you being in an underperforming fund forever?

Outperformance does tend to be a moment effect – so funds and styles often string together multiple quarters and years of outperformance .. But when it stutters, it's sort of anyone's guess whether it bounces back or not, but you also need a way to decisively cut things off.

So I'd say you stay long momentum, but you sell uncertainty .. No investing decision should ever feel like a 'stopping distance' problem: how long should I hold on? Probably, by the time you ask that, you should already be out
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Robin on 05/02/2022(UTC), Guest on 05/02/2022(UTC), Bimble on 05/02/2022(UTC), Elland Road on 05/02/2022(UTC)
Bulldog Drummond
Posted: 05 February 2022 12:59:17(UTC)
#1180

Joined: 03/10/2017(UTC)
Posts: 6,253
Robin;207556 wrote:
I remain unsure why L&G (actively picked) Index 100 is being compared to FS with overweight to Apple and financials/oils etc (if I'm right). And BD, without a whiff of Schadenfreude, it is fair to say BG has been slapped about a bit in the last month just has FS. We all have winners and losers, it is what makes up a portfolio.
.

I think that "active" for the Global 100 would be too strong a description. It's an S&P Index, albeit one which is tweaked so that it is not simply the biggest 100 by market cap. As far as I know, there's no one in S&P making active decisions about what goes into it. You are quite correct about many BG growth funds (including some of mine) taking a whacking, but the difference, I think, is that no one has ever promoted BG stuff as defensive or a core holding, whereas there has been a general feeling that a huge allocation to FS would always be a safe harbour as you could safely pay any amount for quality.
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