Lindsell Train vs. Fundsmith vs. Scottish Mortgage

StellaN

aroominyork wrote: »

Only to a degree, it seems to me. LT is solidly consumer/B2C focused, while Fundsmith mixes it with B2B: Stryker, Amadeus, Bard, IDEXX among its top six holdings.

Although there are a number of holdings that both hold including Paypal, Unilever, Pepsico, Diageo and there could be others so there is some duplication in funds.

aroominyork

I said Fundsmith mixes it with B2B. But like you, Stella, I have a slight preference for LT (possibly influenced by him not investing in tobacco) though it seems a toss up. The main issue which might swing it is whether a downturn caused by cheap credit catching up with consumers - not just in this country - would see B2B or B2C more resilient. Probably impossible to say as a generalisation and it means trying to drill down into the individual holdings.

Sue58

I'm sorry, but why would you want to hold all three funds?

aroominyork

Sue58 wrote: »

I'm sorry, but why would you want to hold all three funds?

I never did say that!

Sally57

aroominyork wrote: »

I never did say that!

So why start the thread!

aroominyork

Because I want to choose between them, not justify holding all of them. (Exclamation mark restrained.)

aroominyork

StellaN wrote: »

If you hold Fundsmith & Lindsell Train Global Equity I would just keep one of these funds and add another global fund that is different to the other two such as Artemis Global Income?

This was helpful. After much cogitation I am likely to buy FS because I like its B2B holdings being more diversified than LT's B2C focus, but also buy LT UK to save buying too much overseas while Sterling is low - in time I may sell it and buy more Fundsmith. However I like the idea of balancing with a global value fund and would appreciate views on funds other than Artemis that would fit the brief.

dividendhero

One thing I do like about Terry Smith is his style, he's been no nonsense and saying as it is for decades. His regular updates are educating and entertaining - Can't say that of many in this business!

Dird

StellaN wrote: »

I wouldn't hold LT & Fundsmith because they have similar long term styles and both have a small number of holdings in mainly the defensive/customer staples market.

According to morningstar (FS & LT) it looks like they could compliment each other quite nicely if you believe in their style & believe they're good at picking value.
FS vs LT:
USA: 63% vs 34% (equal shares means about 50% weighting)
Japan: 0% vs 23%
Heaviest in CD then healthcare then CC
Only 1 company in common in the top 10 holdings

Alexland wrote: »

as you would expect given such a wide market mix. when you dig into the resulting asset allocations they have just created a DIY mis balanced tracker with high fees.

FS has 29 holdings. LT has 26. Vanguard FTSE Dev World ex UK has almost 2,000...they're hardly wide market & trackers with high fees...if they were it wouldn't have been possible for them to outperform the indexes

MPN

aroominyork wrote: »

This was helpful. After much cogitation I am likely to buy FS because I like its B2B holdings being more diversified than LT's B2C focus, but also buy LT UK to save buying too much overseas while Sterling is low - in time I may sell it and buy more Fundsmith. However I like the idea of balancing with a global value fund and would appreciate views on funds other than Artemis that would fit the brief.

Have you considered a global IT such as Bankers etc?