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Frank Marquis
Posted: 04 July 2021 12:18:03(UTC)
#284

Joined: 14/12/2012(UTC)
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Just to add to the chat on here about which (ex post cherry picked) index Fundsmith has underperformed.

The current argument being forwarded seems to be that the first 5 years of the fund were where all the outperformance was, interesting that 5 years ago the chat (on this forum) was that Fundsmith was just a consumer staples tracker and would underperform when consumer staples struggled. Notable that whilst the latter has happened the former most certainly hasn't and instead posters have moved onto comparing Fundsmith to some other unsuitable index (only for cherry picked time periods mind).
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smg8 on 04/07/2021(UTC)
ANDREW FOSTER
Posted: 04 July 2021 12:48:01(UTC)
#281

Joined: 23/07/2019(UTC)
Posts: 8,103
D Bergman;175558 wrote:
ANDREW FOSTER;175543 wrote:

I have FS Equity which I assume is the main topic here, but I've been looking at FS sustainable and I'm surprised how different it is.

It has a lot of Microsoft and Paypal, both of which I rate highly. Im sure FS Equity used to have a lot of MS but it seems to have gone from the top ten now. Maybe my memory is playing tricks.

Nike at 7% is now the top holding.

(By coincidence I was at the Outlet Centre in Mansfield today and a few shops had short queues. All except Nike which went round the corner and down the side. Interesting....)

But that aside I am contemplating switching Equity for Sustainable....

It seems to have the same charge and miniscule yield. But I kind of like the constituents better.

Anyone have a view on this?


Andrew,

I don't know where you get your information, but Microsoft is the 2nd largest component of FS (after Paypal).
Nike isn't in the top ten.
(see https://www.fundsmith.co.uk/fund-factsheet for top ten holdings as of 30 June).

As of 31 March, Microsoft holding is nearly 3 times the size of Nike.


I had got it from HL..... hadn't occurred to me it would be plain wrong. Thanks :)

Note to self - stop using HL for fund data...
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Aminatidi
Posted: 04 July 2021 12:53:02(UTC)
#282

Joined: 29/01/2018(UTC)
Posts: 5,865
ANDREW FOSTER;175640 wrote:
I had got it from HL..... hadn't occured to me it would be plain wrong. Thanks :)


I'm intrigued where HL get it from and where they get it from.

Interestingly if you look at the years Fundsmith fact sheets on their own website there are a number of times where holdings appear in the HL top 10 that literally aren't in Fundsmith's own Top 10.

I don't mean the percentages are wrong I mean HL are saying it's a top 10 stick and Fundsmith themselves aren't.

Imagine if you go stick £100K in Fundsmith on HL because you like the idea of having 10% in Nike!
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Joe Soap
Posted: 04 July 2021 13:11:37(UTC)
#348

Joined: 24/01/2010(UTC)
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Frank Marquis;175635 wrote:
Just to add to the chat on here about which (ex post cherry picked) index Fundsmith has underperformed.

The current argument being forwarded seems to be that the first 5 years of the fund were where all the outperformance was, interesting that 5 years ago the chat (on this forum) was that Fundsmith was just a consumer staples tracker and would underperform when consumer staples struggled. Notable that whilst the latter has happened the former most certainly hasn't and instead posters have moved onto comparing Fundsmith to some other unsuitable index (only for cherry picked time periods mind).

Never let facts get in the way if a good story. Truth is, folks here and elsewhere have been desperate for over a decade now for Smith to fail. They are still waiting. One day he will fail. But we are still waiting. Of course, those who have spent over a decade waiting will be delighted to declare "told you so ".
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Fell Walker on 04/07/2021(UTC)
Dan L
Posted: 04 July 2021 13:17:04(UTC)
#285

Joined: 29/04/2018(UTC)
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Frank Marquis;175635 wrote:
Just to add to the chat on here about which (ex post cherry picked) index Fundsmith has underperformed.

The current argument being forwarded seems to be that the first 5 years of the fund were where all the outperformance was, interesting that 5 years ago the chat (on this forum) was that Fundsmith was just a consumer staples tracker and would underperform when consumer staples struggled. Notable that whilst the latter has happened the former most certainly hasn't and instead posters have moved onto comparing Fundsmith to some other unsuitable index (only for cherry picked time periods mind).


I agree. I first invested in Fundsmith around six years ago and remember at the time a few people saying that the fun was over and there was no way it could continue to outperform going forwards. Since then it has been my most successful long term hold to date.
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Joe Soap on 04/07/2021(UTC), Jesse M on 04/07/2021(UTC)
Joe Soap
Posted: 04 July 2021 14:34:45(UTC)
#286

Joined: 24/01/2010(UTC)
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Dan L;175648 wrote:
Frank Marquis;175635 wrote:
Just to add to the chat on here about which (ex post cherry picked) index Fundsmith has underperformed.

The current argument being forwarded seems to be that the first 5 years of the fund were where all the outperformance was, interesting that 5 years ago the chat (on this forum) was that Fundsmith was just a consumer staples tracker and would underperform when consumer staples struggled. Notable that whilst the latter has happened the former most certainly hasn't and instead posters have moved onto comparing Fundsmith to some other unsuitable index (only for cherry picked time periods mind).


I agree. I first invested in Fundsmith around six years ago and remember at the time a few people saying that the fun was over and there was no way it could continue to outperform going forwards. Since then it has been my most successful long term hold to date.

Some people just like to moan. Other people can't stand anyone or anything being successful. It's a sad trait of the British psyche, I am afraid to say. Just have to ignore it and get on with life. There's nothing negative that hasn't already been said a million times before.
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smg8 on 04/07/2021(UTC), Dan L on 04/07/2021(UTC), Jesse M on 04/07/2021(UTC)
Bulldog Drummond
Posted: 04 July 2021 19:27:05(UTC)
#287

Joined: 03/10/2017(UTC)
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Joe Soap;175670 wrote:

Some people just like to moan. Other people can't stand anyone or anything being successful. It's a sad trait of the British psyche, I am afraid to say. Just have to ignore it and get on with life. There's nothing negative that hasn't already been said a million times before.


There are some things that I think we can all agree on about FS:

*Since inception it has done well, and has been a great investment for those who got in early
*It has a single approach, which is mega-cap quality, with a focus on the US
*Over the past 5 years it has tailed off, still doing okay but pretty much the same as a comparable tracker in the same space
*Its holdings look expensive, having got there through re-rating, and it is focused on a narrow sector

The question is whether a narrow concentration in expensive, quality, US-focused, mega-caps will repeat the performance of the early years, when this stuff was less expensive. Maybe it will. Personally, given the rather average performance in recent years, I wouldn't bet on it. But that's merely a matter of opinion.
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Tim D on 04/07/2021(UTC)
ANDREW FOSTER
Posted: 04 July 2021 19:32:51(UTC)
#335

Joined: 23/07/2019(UTC)
Posts: 8,103
Bulldog Drummond;175710 wrote:


There are some things that I think we can all agree on about FS:

*Over the past 5 years it has tailed off, still doing okay but pretty much the same as a comparable tracker in the same space



Nope... we don't agree. Unless you can say specifically which 'comparable' tracker your are comparing to.

Can you name your comparison?


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Bulldog Drummond
Posted: 04 July 2021 19:36:28(UTC)
#336

Joined: 03/10/2017(UTC)
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ANDREW FOSTER;175713 wrote:
Bulldog Drummond;175710 wrote:


There are some things that I think we can all agree on about FS:

*Over the past 5 years it has tailed off, still doing okay but pretty much the same as a comparable tracker in the same space



Nope... we don't agree. Unless you can say specifically which 'comparable' tracker your are comparing to.

Can you name your comparison?




I think that I have mentioned a few times that the Global 100 is in a similar space, but if you don't like that try the S&P. Comparisons to the FTSE 100 or World would obviously be ridiculous.
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smg8
Posted: 04 July 2021 19:40:39(UTC)
#288

Joined: 26/04/2020(UTC)
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Bulldog Drummond;175710 wrote:
....... given the rather average performance in recent years......


I think where my opinion differs to yours (aside from which index as we clearly have covered off way too many times that I feel a global index is fair for a global fund and you feel a US index is fair for a global fund) is we must have a different interpretation of average;

If 36/309 and 50/374 is "average" may I ask what would constitute a "good" performance and would be a "poor" one?

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ANDREW FOSTER on 04/07/2021(UTC), mcinnes on 05/07/2021(UTC)
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