Fundsmith’s defining moment

The bear market is putting Terry Smith's quality growth strategy to the test - is he right to be defiant as value outperforms?

Photo by Anne Nygård

Terry Smith, the fund manager, has spent more than a decade outwitting the market with his particular brand of ‘quality’ investing. Buying highly profitable, cash generative, financially stable firms without overpaying and then sitting tight has paid off handsomely for the Fundsmith Equity Fund. After 12 years since launch, it’s currently sitting at a size of about £22+ billion.

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Portfolio Update June 2022: A month of two halves

The spectre of recession and less aggressive monetary tightening rescued the portfolios from an even worse performance in June.

Photo by Izuddin Helmi Adnan

May’s market horror continued into June as worries over inflation and the Fed’s course on rates persisted, only to reverse around the middle of the month and end back where they started.

In any normal circumstances that reversal will have come as a relief. Except these are not normal circumstances, because in any sane world the prospect of a savage recession would hardly be encouragement for buyers to return; the stock market IS the economy, even if the timing is sometimes off.

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Triumph of the Pessimists

The long history of the stock market suggest it pays to be an optimist – but investors in individual equities have reason to be a little more gloomy

Photo by Kind and Curious

It’s often said that to be a successful investor you need to be inherently optimistic. In other words, you have to believe that whatever crisis we are living through, over the long term the market will prevail and you’ll make money if you’re in it. It’s something I’m hearing a lot on Fintwit right now as markets tank.

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