Smithson Investment Share Discussion Threads

[bezer] 30/9/2020 11:18

The Smithson NAV has just broken 50% up from inception. I believe that has never occurred before please correct me if I am wrong). We are still just under 3 weeks from Smithson's second birthday. You can't complain. Congrats to all who got in on day one......

[bezer] 02/9/2020 17:49

Quick Terry Smith Interview on Sky News:

hxxps://news.sky.com/video/could-recession-be-followed-by-new-roaring-twenties-12061605

[montynj] 10/8/2020 10:41

Nice to see NAV steadily moving higher

[the juggler] 03/7/2020 22:25

Terry Smith in FT yesterday.

[hectorscrackhouse] 20/6/2020 09:28

Terry is not happy with Amadeus

[bezer] 18/5/2020 20:58

Some interesting ideas on liquidity between the main fund and Smithson.

hxxps://www.moneymarketing.co.uk/news/will-a-terry-smith-backed-investment-trust-be-a-victor-of-the-crisis/

[bezer] 12/5/2020 15:07

Agreed Juggler. It is EVEN more impressive when you examine the latest Smithson Factsheet. From inception (19th October 2018)to 30th April 2020 Smithson Share price did 31.0%. However, during the same period their benchmark index did -4.7%. Check the numbers - it's true!

During the launch of Smithson, back testing suggested it 'should' better the main fund - a tough task. So far....it has.

Also watch the new investment - Qualys inc.

[the juggler] 12/5/2020 14:34

Hitting an All Time High intraday 1408p. Incredible performance.

[mozy123] 04/5/2020 15:51

Never mentioned Nike before at an AGM. Mastercard, agree he likes it but portfolio already full with that industry.

Starbucks - never mentioned that one, but the china comment made me think of it. Lukin coffee also had a fraud "glitch" haha!!

Clorox - he started buying, but then covid hit and the share price ran away, and so wasnt able to buy for the fund a full position. Hes often said that if he cant buy a full position then it will be sold. In any event a nice trade, and no his strat hasnt changed, he just couldnt buy any more due to price.

Nike and Starbucks are class companies.

[hectorscrackhouse] 03/5/2020 09:11

186

Of course, the same could be said for many a household brand. The investment case must be made NOW though for these more mature companies.

aaaah flying, well Buffett has just ditched all his airline stock so he predicts a continuing disaster for that industry. So, they will be desperate to attract steerage punters and upgrade them. lol

Enjoy your Sunday

[bezer] 02/5/2020 22:59

Hate to tell you this Hector but if you had banged in a load 20 years ago to either of those companies you would never fly Economy again.

[malcolmmm] 02/5/2020 00:06

Most probably bought into an undervalued like for like company

[smicker] 01/5/2020 22:52

Surely he needs to sell something when he wants to add a new holding in any size?

[hectorscrackhouse] 01/5/2020 20:00

thanks The Furry One.

Has he ever mentioned Nike at any meeting????

[bezer] 01/5/2020 19:24

Thank you TheFurryOne - Excellent Post!

[thefurryone] 01/5/2020 19:17

Citywire reporting the two buys as Nike and Starbucks (Great guess Mozy!)

[bezer] 01/5/2020 17:29

I would politely argue that there is virtually no chance of Mastercard being in the Fund whilst he holds Visa and Paypal. Mastercard was discussed at the AGM just over a year ago and it was classed as a mistake, as he does not own it and it had outperformed Visa. Admittedly he loves the payment industry but Paypal is the no 2 holding so he holds an awful lot of stock in the industry. This is why his beloved L'Oréal is rarely/if ever seen in the top ten holding because he owns so much of Estée Lauder.

For me, the big question is the sale of Clorox. The more I think about it the more of a bolt out of the blue this news is. I have been looking at the dates and it appears that a return of approximately 21% was made during the recent holding. Very nice but as it is such a sound company it begs the question of why sell? It will be most interesting to hear his reasoning behind this sale when he pens his annual letter to shareholders.
In the mean time, Smithson investors should be very happy. I know I am.

[hectorscrackhouse] 01/5/2020 16:58

as a follow up, Mastercard results were good, but only went to 31 March 2020.

Check out slide 9 and the April figures, Yikes

[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!