Whts happened to Fundsmith

gudda96 wrote: »

Anyone else shocked about Fundsmith price drop, not looking at another Woodford scenarion are we?

Sterling has risen - Fundsmith is mostly invested overseas so the fund is worth less in £

Its down 5.6% in the past 3 months but still up 17% over the past year so I dont think investors have anythng to complain about.

Linton wrote: »

Nothing much has happened with Fundsmith. It is broadly following markets across the world. Because it invests in relatively few investments in particular sectors you would expect it to be more volatile than the general markets, rising higher in the good times and falling further in the bad ones. Currently we are in slightly bad times.

So just sell out of Terry's fund in the bad times (when you expect underperformance) and buy back in during the good times (when you expect outperformance)?

Sailtheworld wrote: »

If the OP had asked the same question about Woodford some time ago he would've received similar answers..

'Yes entirely usual - nothing to see here..'

'If you need to ask you obviously don't know what you're doing and should stick to Post Office savings'

Woodford had plenty of cheerleaders although the selective amnesia seems to have kicked in recently.

You maybe correct about the replies to Woodford. However the problems with Woodford can not happen with Fundsmith*** unless Fundsmith decided to change strategy completely and start investing in dodgy illiquid scams.


***there could be a scenario where many of his holdings tank so much that they become illiquid and difficult to get out of and at the same time investors start pulling money out causing similar difficulties to Woodford. However this would be very very very rare given the names he holds currently.

Linton wrote: »

Your powers of prediction must be better than mine. Stay with it on the basis that the good times last longer than the bad ones. If they didnt investing would be pointless. Over each of the past 5 years Fundsmith has outperformed the FTSE World Index. Overall it has produced roughly double the return without putting money into anything esoteric, unusually risky or illiquid, more the opposite.



I dont hold it and dont plan to.

Why are you comparing Fundsmith to a world index? Shouldn't you compare it to a US tracker (since 70% of fundsmith holdings are in US)? The outperformance is not so great then.


Note: I hold both Fundsmith and US tracker.