Fundsmith again.

Bostonerimus1

https://forums.moneysavingexpert.com/discussion/comment/82088606#Comment_82088606

It's a good clear video. That's what I've come to expect from this Youtube channel: he's one of the better financial influencers. The content isn't new, still it's worth a listen for anyone paying 1% to an active fund manager. I feel a bit sorry for Terry Smith because his style means he's largely missed out on the tech driven gains of the last few years. I think he should stick to his guns about quality and value and market Fundsmith as a way to avoid the tech bubble and get long term gains. I bet that in 2 or 3 years time things might look a lot different. The difficulty for him is stemming flight from Fundsmith and I'm not sure his mixed messaging will do that.

talexuser

Good video, as the comment said best served cold.

When I started investing there were no passive funds, I still remember Virgin launching a FTSE tracker to great fanfare and publicity at a 1% fee!! (which they maintained for many years). The idea that a star manager can't always be right is hardly ground breaking. Littlewood was fantastic at Jupiter until he left to start a boutique which went nowhere. Woodford was great at Perpetual and even for a couple of years at his fund before exploding. Bolton was excellent until he left to start on his own. Smith the same for the first ~10 years but terrible the last five or so.

Active is a gamble where you need a bit of research when to punt in and when to bail out. I had selective times in all of the above and no regrets at all. But do worry about the effect of passive as it grows and grows. The fact that it grows is shown by the handful of examples above compared to the many thousands of active funds that are a proven waste of time and money. Over the years I've gone more and more passive as the number of good looking satellites gets less and less.

The next crash might be an eye opener considering some of the ridiculous valuations we see today. But since you can't predict it, meanwhile is there any other (passive or active) game in town?