Smithson Investment Share Discussion Threads

[hectorscrackhouse] 01/5/2020 16:56

Nice Moz

He likes payment processors so it's a good shout, perhaps he is also considering AXP although they also make loans, so a bit reckless for him, maybe.

Yum seems to have a VERY high ROCE and has been adversely impacted as it is down by about a third, Another good shout

Starbucks another good shout: iconic brand etc


I'll have a wild stab at Hershey: iconic brand, 6.8& FCF and ROCE of ABOUT 28. Last results were a tad disappointing but not an abortion.

[mozy123] 01/5/2020 16:36

Yum brands, Mastercard, Starbucks are my guesses!

[hectorscrackhouse] 01/5/2020 16:08

Yes Bez, good result to far this year.

I think he is buying the same stock for his sustainable Fund. The wording is 'companies particularly affected by events'. Can't imagine he would buy another Hotel stock or travel booking stock, but you never know. Which other sectors have been most hit and contain a growth stock with high ROCE, little debt etc.

[bezer] 01/5/2020 15:49

Hector: I read the same thing and it certainly offers more questions than it answers. Frustrating that there is still no mention of the two new holdings. I wanted to research them. I believe I am correct in saying that he has owned Clorox before but sold it when he thought the valuation was unsustainable. I would imagine that after the great run that Clorox has had he has sold for the same reason.
The strange thing is that last month with the two new still undisclosed companies he was up to 30 holdings which under his own rules is the maximum he can hold. With the sale of Clorox he is back to 29 so there is room for one more. It appears that recent volatility has not unearthed another new company to invest in.
Did you see the YTD performance figures? Fundsmith is 0.0% for 2020 where as the benchmark index is -8.0%. Wow!

[malcolmmm] 30/4/2020 16:21

Bought some of these a few days ago, also BRSC at 9015p which seem to be recovering.

[bezer] 28/4/2020 11:00

As from just a few minutes ago, Smithson hit £13.00. It is now in profit YTD. An incredible achievement. It will be fascinating to read the factsheet due out next week to see the performance against the benchmark since inception.

[hectorscrackhouse] 13/4/2020 09:25

I know he's owned Church and Dwight before, perhaps he has bought it again.

[bezer] 09/4/2020 20:46

As we go into this Easter Weekend, we have the "scores on the doors". Since Jan 1st 2020 YTD: Fundsmith T Class Equity -5.09%. Smithson Investment Trust -5.39%.

In this year from hell?!

LOADS of luck - I managed to top up on Smithson at below inception price on March 20th. Very fortunate. I wonder if I have joined the ELITE, not only was I an original Smithson Investor, I can add I bought just north of £20K at below inception price - £9.58. Very, very lucky. Be safe people.

[hectorscrackhouse] 09/4/2020 10:17

Good morning Jgun,

Yes, I just watched the presentation. Interesting shout on the Alphabet as he is monitoring that, but was a little wary of the lowish ROCE. He already has Visa so not certain he would add another of the same ilk like Mastercard, but maybe.

Not sure of his rationale for owning Novo Nordisk, but not other large pharma, was clear.

He was interested in the consumer side of GSK, if they spin it out, but not the Pharma side; similarly, he liked the consumer side of JNJ but admitted that the Pharma side had actually prospered more since be bought it. He doesn't like lumpy revenue from drug developers but the larger the Pharma the less lumpy, surely. I have been buying Roche as its ROCE IS > 30 and its FCF is about 6.9&. Of course, as soon as I started buying it the price has dropped, so WTF do I know.

Good luck with your investments.

Here is a link to the presentation. I would be interested in anyone else's take.

[edwards9] 08/4/2020 23:41

Or JD Sports

[jgunnsm2] 08/4/2020 20:08

At the AGM he made a good case for Alphabet. Much more of a guess at the 2nd one as they like millions of transaction companies so Visa or MasterCard.

[battyliveson] 06/4/2020 11:06

I believe he mentioned a blip due to an exposure to China. Could it be Burberry?

B

[hectorscrackhouse] 05/4/2020 18:55

Not sure about that Bez, The Denmark increase might be because Coloplast and Novo Nordisk have held up well and therefore account for a higher proportion of the assets.

Similarly, L'Oreal has not tanked and may account for the slight change in France

The only thing I can see is that Consumer Discretionary has gone up from 2.7 to 3.3% so that might be a clue.

[bezer] 05/4/2020 18:29

hectorscrackhouse: I was asking the same question. I looked at the geographical split between the latest Fundsmith Factsheet and last month's. My guess is whatever they are, (both will be Large Cap) one is Danish, the other French. Interesting to see if I am right.

[hectorscrackhouse] 05/4/2020 18:05

According to his 'Corona letter' Terry is buying two news stocks for the main fund. Any idea what they could be ?

[bezer] 31/3/2020 13:27

The Smithson AGM and update has just been posted on their website in the TV section. This should be most interesting!

[essentialinvestor] 19/3/2020 17:07

Very significant weighting to the US equity market.

With coronovirus cases just taking off stateside.

[steve3sandal] 29/2/2020 16:16

None of my business but 4/6 basstrend ITs are doing pretty much the same thing with quite a lot of stock overlap. So.....this is not diversification unless it’s a tilt within a wider pot. No surprise they all did the same. I held/hold Throgmorton Smithson and Scottish Mortgage. Discount widening from premium in sone cases. Provided the world isn’t going to hell in a handcart all well in Top up mode IMO. The experts suggest staying the course.

[lomax99] 29/2/2020 15:14

Yes, so much for funds diversifying risk. I am down almost as much, on average, on my funds (investment and unit trusts) as I am on my individual stock selections! From your list I hold ATT, THRG and SSON.