Fundsmith Emerging Equit... Share Discussion Threads

[jonwig] 31/8/2016 14:33

Placing programme of maybe up to 4,164,480 shares (on top of current 21m):



Not pre-emptive, but presumably placed between latest NAV (now 1091p) and current price, as and when triggered ... needs an EGM.

[goyathlay] 17/8/2016 21:39

Papy02

Yes, that comment on how to project total return struck me too.
Fraser-Jones of Woodford Investments uses the formula: "“In very simple terms, our total return expectation for a stock equals its dividend yield plus the anticipated rate of dividend growth."

The 52% ROCE was a bit tasty too. I only hope emerging markets accounts are presented in the same way as ours.

Still, @ 1180p if you discount the 6% premium and the 10-12% currency effect it is more or less @ issue price.

No matter, I am here for a minimum of 10 years and, like Mozy, have both funds.

[mozy123] 17/8/2016 13:41

Cheers Papy02

One point he made was that the P/e ratio of the trust was 35ish vs 24 for his equity oeic.

However like you say, the growth in earnings are increasing at alot fast pace and he expects Feet to outperform Fundsmith OEIC in the long run.

Sat here hapilly owning both!

[papy02] 17/8/2016 11:45

THanks Goyathlay.

I do like Terry Smith's straightforward approach.

My summary:

Only invest in good companies: Tick, but had to sell a few that turned out not to be

Don't overpay: maybe we pay high prices, but buying quality high-ROE growth companies is more important than price.

Do nothing: er 67% portfolio turnover, of which some (not quantified) is because we are still investing initial cash

The most interesting to me was his comment on p19 that shareholder Total Return should = the FCF yield + the eps growth rate. Which gave 20.5% TR last year for FEET vs 11.4% for Fundsmith Equity, and he would expect the two to diverge further.

I read this as his medium term expectation for FEET is >20% pa, (although other interpretations are available;-)

Comments welcome. Anything else strike anyone?

[goyathlay] 16/8/2016 18:23

The video from the ASM 2016 has been released.

[jonwig] 08/8/2016 06:44

Citywire comment:

[danieldruff2] 26/7/2016 11:36

It appears to be turning along with emerging market fundies ASHM and ADN stabilising, it's those I will be comparing against in terms of returns. Wonder if this can outperform them, taking into account it pays no divis and the others do.

[mad foetus] 26/7/2016 11:29

FEET is starting to do what it said on the tin.
Terry Smith has always said it will outperform Fundsmith over the long term. It certainly feels like a good place to be at the moment.

[dondee] 25/7/2016 21:19

Up 11p today.

[dondee] 11/7/2016 20:25

Up 29p today 11/7/16.

[hydrus] 05/7/2016 19:04

The pound falling again, should be positive for share price. Good diversification away from UK issues, I added more recently.

[mad foetus] 01/7/2016 14:59

at a discount now and up from ipo for the first time in a while
feels like a new dawn for FEET

[goyathlay] 07/6/2016 12:05

The slides from the latest AGM Presentation are on the website now.

[flying pig] 07/5/2016 15:42

It is still trading at a premium.

[trytotakeiteasy] 06/5/2016 12:22

yes but he is wrong so far.

[jonwig] 20/4/2016 07:03

Terry Smith on FEET:

[mad foetus] 21/1/2016 08:33

there was a good feature on the C4 news a couple of weeks ago about English people migrating "back" to Nigeria. Lagos is currently a real boom town, and quite a few black Londoners are setting up business there. The biggest problem for developing economies, as I understand it, is the inefficiency of the power supply, with power cuts all the time, but I suspect improved batteries, solar power and micro generation will solve that within a decade.

Of course there are huge problems, but I was left with the strong impression that things are getting better quickly in that part of the world.

[hydrus] 20/1/2016 22:17

Good summary mf, I'm certainly not going to be shaken out of my position but as you say it's always a little painful if you start of with a loss

[mad foetus] 20/1/2016 18:57

In a good year FEET will manage a 50% gain IMO. It is always good if any investment starts off well, but I expect the speed this will at some point bounce back I'll surprise many. In the end, I believe the middle class in India, Nigeria, the Philippines and elsewhere will continue to grow, and to buy toothbrushes, ketchup, beer and soap in increasing quantities. That is the bet here, and if you can withstand the market noise I can't see what is wrong with that proposition.

[hydrus] 20/1/2016 15:09

Jonwig I didn't invest specifically to get EM exposure. I invested because a) I backed Smiths judgement that there were significant opportunities for growth in the type of company he likes to invest in within emerging markets and b) I believed he would continue to pick sensibly b) seems to be holding up wellNot sure about a) for now - maybe he has invested when valuations were near peak?However I'll give both 5 years before judging

[jonwig] 20/1/2016 14:33

That's why you invest here, or avoid.

If you want EM exposure without doing the stock picking or individual market choice, MSCI Em Index has fallen 24% since July 2015. FEET has fallen 15%. (FTSE100 by 11% but relevant?)

[hydrus] 20/1/2016 11:39

I hope he can

[edwardt] 20/1/2016 11:33

terry can see the future