Worth buying Fundsmith at this point?

rockingdane

Hi,
I was wondering if buying this fund is worth it? It is performing well and is consistent. Plan to use my ISA allowance for it...What do you guys think? any advise?
Dane

enjoyyourshoes

One of my top performing funds so far.

Funds can go up and down !

He is contrarian so read the details and assess the risk based upon your own profile.

Might be worth digging into other funds and start making your own mind up on these things as it will build your confidence and experience.

Balanced portfolio balances risk so consider other IT's alongside.

Dird

enjoyyourshoes wrote: »

He is contrarian so read the details and assess the risk based upon your own profile.

In what way is he contrarian other than supporting brexit?

rockingdane

I have invested in Vanguard lifestyle 60 and so far so good. Just thought I'd diversify as cash isa is useless and I can't keep track of different bank accounts. .
Dane

Scarpacci

Ever since Fundsmith began people have been predicting any (or all) of the following are going to happen:
-Consumer staples were too expensive and were about to crash.
-A technology bubble was about to burst and stocks like Microsoft would come crashing down.
-That U.S. stocks overall were well overpriced and set to plummet.

Maybe they'll be right this time. You could probably throw a few things like Donald Trump destroying the American economy, Hillary Clinton ruining health care stocks, and a Brexit rebound reversing the £'s steep decline against the dollar, as similar reasons not to invest in Fundsmith this time around.

I would say if you're investing because you believe it's possible to select good companies and you believe Terry Smith in particular can do that, then it's probably not a bad idea to invest in Fundsmith. But you would also be wise to agree with him that it's no good to try timing the market, jumping in and out of funds/stocks etc.

If you're buying it because it's done well so far, you could end up selling out if it does (as is likely at some point) start to under perform, losing money in the process. Active management isn't just a difficult terrain because most managers fail to even match the market performance. The end customer often doesn't even manage to get the fund's performance because they jump in and out - usually at the exact wrong times.

redmalc

I think you have missed the boat by twelve months now

Dird

redmalc wrote: »

I think you have missed the boat by twelve months now

The people from twelve months ago had also missed the boat by twelve months though

talexuser

It's quite concentrated so maybe not suitable for a first fund, I think, unless you are happy to ride for quite a few years before worrying about potential losses. I have it in my SIPP as a balance to UK orientated, perhaps "safer", funds.

moneyfoolish

redmalc wrote: »

I think you have missed the boat by twelve months now

By at least 5 years, I think, as it's gone up by 150% in the last 5 years with every year being an increase!

rockingdane

I have just invested in one fund so far VLS 60 , started late in life but decided to diversify, got around 8K in VLS...am keen on fundsmith but unsure, so wanted some experts view on it.

george4064

rockingdane wrote: »

I have just invested in one fund so far VLS 60 , started late in life but decided to diversify, got around 8K in VLS...am keen on fundsmith but unsure, so wanted some experts view on it.

What makes you think you will get expert views on here?