Smithson Investment Share Discussion Threads

[the juggler] 02/4/2021 21:31

Thanks lomax99, an interesting read.

[lomax99] 02/4/2021 11:37

Worth a read: Https://www.itinvestor.co.uk/2021/03/how-big-can-smithson-get/

[mattboxy] 17/3/2021 22:00

Sorry to hear that but she was indeed a wise investor - good luck!

[lomax99] 17/3/2021 19:13

The 2020 annual report is available:Https://www.smithson.co.uk/docs/default-source/smithson-annual-reports/annual-report-for-the-year-ended-31-december-2020.pdfThe table at the bottom of page 16 shows how lame the average constituent of the MSCI SMID reference index is with reference to key performance indicators.

[bezer] 04/3/2021 21:00

wildshot: You sound like a real Gentleman.

[wildshot] 04/3/2021 17:27

Thanks for sharing hectorscrackhouse. Rollins has been held for a while by Keith Ashworth-Lord in the Buffetology fund. He likes the financials and repeat trading of this business, as someone who owns a property in Florida Keith explains that vermin control is obligatory and not optional - good repeat business.

[hectorscrackhouse] 03/3/2021 10:47

""Portfolio Comment for February 2021 We initiated a position in Rollins, a US based provider of pest control services, a company which has demonstrated consistent growth and strong margins and returns over several decades. We began purchasing a stake after a negative share price reaction to recent results. We exited our position in Abcam during the month after we became increasingly concerned regarding the future capital allocation in the business."" Clearly there is money in vermin.

[bezer] 20/2/2021 20:21

qvg: Beautiful, Just beautiful! M

[qvg] 20/2/2021 16:02

bezer, i get a double benefit - I both hold Smithson, and I bought Fortinet before Terry did

[bezer] 20/2/2021 09:33

Smithson has been weak so far in 2021 so I could not resist a top up this week. In my notes I wrote at the time that Fortinet inc (bought September/Oct 2020) for roughly 120. It is now 171.93, a rise of 43.28%. You can't knock that!

[bezer] 04/2/2021 19:11

Sadly, a dreadful January best forgotten for all manner of purposes! Fundsmith and Smithson and our new friends at Blue Whale all underperformed the Market. I doubt in five years time we will remember their Jan ’21 performance. If we remember anything about last month it will be the usual January traits of cold; miserable, dark early without the pick up of the annual hope of Tenerife in March, as Spring homes into view..... On a happier note, it should be noted that in Jan 2013 Fundsmith did 9.4% up – where did that come from historically? – just stay invested in these great funds.

[hectorscrackhouse] 04/2/2021 17:42

New position accumulation from latest Monthly factsheet: Portfolio Comment for January 2021 We began buying a new position for the fund, the name of which will be revealed when we have accumulated our desired weighting. The top 5 contributors in the month were Qualys, Domino's Pizza Enterprises, Ambu, Technology One and Domino's Pizza Group. The top 5 detractors were Sabre, Paycom, Verisk Analytics, Simcorp and Rightmove.""

[hectorscrackhouse] 20/1/2021 12:47

Terry Smith's annual letter for the main fund out today. Nothing very startling or new, although this bit struck me as quite interesting "I became increasingly bemused listening to or reading various commentators predict that the economic recovery from the COVID lockdowns would be V shaped, or shaped like a U, an L, a W, a bathtub or like the Nike swoosh (I’m not making this up). But just when I was bored of this entire meaningless alphabet soup of predictions, I came across one that I thought might be correct and help to explain what may happen. It was that the recovery may be shaped like a K. A K shaped recovery occurs when different sectors of the economy emerge from a downturn with sharply differing trajectories — like the arms of the Roman letter K." Oh, and the fact he can't spell 'de rigueur' ;)

[marksp2011] 08/1/2021 17:40

I bought some more today which really screwed my average of 960p Still............. let's hope I have the same issue next year

[lomax99] 07/1/2021 06:54

Questor: our investment trust tip of the year – 'This is one you can buy and lock away'Questor investment trust bargain: Smithson, the Fundsmith for smaller stocks, proved itself during the pandemic last yearThe pandemic has provided Smithson, the global investment trust for smaller and medium-sized companies from the Fundsmith stable, with its first major test. And so far it has done exactly what it set out to do: it has delivered steady returns despite the sharp market sell-off in March.Over the past 12 months Smithson's share price has risen by 29pc, in line with its net asset value, and has outpaced the 13pc rise in the MSCI World Small Cap index.The portfolio has proved relatively defensive: its largest "drawdown" or peak to trough decline last year was 17pc. Rivals BMO Global Smaller Companies and North Atlantic Smaller Companies recorded NAV drawdowns of 35pc and 24pc respectively, according to Winterflood, the broker.In light of these promising numbers, Callum D'Ath of Brewin Dolphin, the wealth manager, has selected Smithson as his top investment trust pick for 2021.He came up with last year's best performer, Edinburgh Worldwide, which also invests in global smaller companies but has more of a "growth" focus than Smithson. Edinburgh Worldwide has gained 68pc since we tipped it in February 2020, so we have high hopes for Mr D'Ath's latest trust idea."I think Smithson is brilliant," he said. "It is one of those investment trusts that you can buy and lock away."Smithson's resilience in 2020 is perhaps no surprise, given its focus on "quality" small and medium-sized companies around the world. The manager, Simon Barnard, invests in well-established businesses, typically leaders in their industries, that have the potential to generate cash and produce consistent returns.The fund holds the likes of Domino's Pizza and Equifax, the credit score agency. Mr Barnard aims to buy good companies at the right price and then "do nothing", simply letting the investments compound in value over time.It is the same philosophy that Fundsmith's founder, Terry Smith, follows with his successful "open-ended" Fundsmith Equity fund, which invests in large companies around the world with similar characteristics.While Mr D'Ath said he rated both funds, he suspected that Smithson had the potential to outperform its larger cousin over time because of its bias towards medium-sized firms."These are well-established businesses with a huge runway for future growth. It is a great area to invest in and I think Smithson is a fantastic way to do it," he said. That doesn't mean investors have to decide between the two funds: Mr D'Ath said there was a place for both in a diversified portfolio.Smithson Investment Trust key factsMarket value: £2.4bnYear of listing: 2018Discount: 3.6pc premiumAve discount over past year: 1.9pc premiumYield: nilMost recent year's dividend: nilGearing: nilAnnual charge (June 2020): 1pcAlthough Smithson looks great on paper, it would be remiss of Questor not to highlight certain facts. First, it is a concentrated portfolio, comprising only 31 stocks, with an unashamed focus on capital growth rather than income (it has never paid a dividend).Second, the eagle-eyed among our readers will be quick to highlight the trust's persistent premium, which stands at 3.6pc. For some, this could be a sticking point.However, Mr D'Ath said he was not too concerned by it; he said it was becoming difficult to find good trusts that weren't trading at a premium. "Smithson is a popular trust and has pretty much traded at a premium since its launch in October 2018," he added.He said the board continued to issue shares in a bid to keep the premium in check: the trust raised £393m (net of costs) over the course of 2020, according to the Association of Investment Companies.Questor says: buy on weaknessTicker: SSONShare price at close: £16.96Finally, it is important to highlight the trust's annual management charge of 0.9pc, which is higher than those of a number of its global equity peers. This might represent another stumbling block for some of our readers.While costs remain an important consideration, Questor believes there is still much to be said for the trust's potential to generate stable and growing returns over time.And if 2020 is anything to go by, this "Steady Eddie" has more to give. This is one to buy whenever the shares take a stumble.

[bezer] 06/1/2021 13:23

Hector: She has indeed seen the umbrella and was amused. It was the perfect gift for a guy like me who loves the mighty Fundsmith!

[hectorscrackhouse] 06/1/2021 08:59

Bez, did you show her your umbrella?

[bezer] 05/1/2021 21:36

Hector me 'ol China this is complicated. I happen to know a lady with very luxury tastes. I was fortunate , she came around for coffee yesterday and I was looking at the holdings of LVMH and read it out to her.... She was nodding all the way through the list. Mind you, I think she just wanted her coffee..... She LOVED the luxury list that LVMH owns! If you can get a double thumbs up from a lady like her..... Let us say, The Lady wins.

[steve3sandal] 05/1/2021 21:14

CDI is a better way to buy LVMH in my view, but obviously less liquidity if you are spending big bucks. CDI has 41% economic interest in LVMH which is c€100bn of value. CDI market value only €82Bn.

[hectorscrackhouse] 05/1/2021 20:04

Terry has bought LVMH for the main fund. Bit cyclical, quite expensive and with an ROCE of about 15%.

[hectorscrackhouse] 30/12/2020 10:16

Bez, I want one of those!

[bezer] 29/12/2020 20:46

Thought it might amuse and wish I could post a pic of the tasteful colour. My Lodger knows that I love Fundsmith/Smithson and went to the trouble of getting me a Fundsmith Umbrella for Xmas as a present: Fundsmith [their logo, in red] underneath - For a rainy day Loved the present! Happy New Year and we are all doing very well investing with these guys in these terrible times.