Archive

The world is moving in the opposite direction to Berkshire Hathaway.   “I shall not look upon his like again,” declares Hamlet, ruminating over the loss of his father at the beginning of the play. Since Warren Buffett announced his retirement from Berkshire Hathaway this month, financial commentators have been asking themselves the same question: can anyone live up to Buffett’s successes?

Having spent the first decade of my career working in a bank and then becoming a top-rated bank analyst, I find that people often express surprise that I never invest in bank shares. But I think it is precisely because I understand banks that I never invest in their shares. The recent events surrounding the collapse of Silicon Valley Bank (“SVB”) and Credit Suisse reinforce this stance. Why?

I suspect you have all heard about the gilt market’s impact on UK pension funds’ liability driven investment (LDI) strategies. Why did this meltdown happen and who is to blame?

There is a lot to lose and little to gain from market timing
I last wrote about the problems of so-called market timing in these pages in 2013 (Market timing: don't try this at home). With the Covid-19 pandemic dominating the news and recent volatility on world stock markets, you may have heard a lot about market timing again.

Tumult, turbulence and turmoil are just the words beginning with the letter T used by commentators to describe the behaviour of stock markets in October. I think it’s always good to look at the definition of the words we are being asked to accept. For example: turmoil, noun: a state of great disturbance, confusion, or uncertainty . synonyms: confusion, upheaval(s), turbulence, tumult, disorder.

In his latest article for FT Money, Terry Smith believes that AstraZeneca’s problems go much deeper than its recent setback for a single drug.

In his latest article for FT Money, Terry Smith discusses the unique advantage investing in equities has over other asset classes.

In his latest article and podcast for FT Money, Terry Smith discusses why it may seem a strange position for an active fund manager to adopt but he is in favour of passive or index investment; the problems with emerging market ETFs; and the types of companies that these ETFs invest in.

Terry Smith discusses 'known knowns' and looks at what investors should focus on.

Terry Smith discusses the 'Nifty Fifty' and what it can tell us about bond proxies.

Terry Smith discusses Fundsmith’s investment strategy and why investors should not write off bond-proxies just yet.

Investors should “buy, forget and enjoy the results”. Terry Smith gives his views on how to achieve a superior investment performance in 2016 in a feature article by FT Money editor Claer Barrett.

Terry Smith reflects on five successful years of Fundsmith and discusses what he has learnt over this time, including the importance of sticking to the facts and why selling good companies is rarely a good move

Terry Smith reflects on the fifth anniversary of the Fundsmith Equity Fund and explains why investing in high-quality assets is so important when it comes to attaining long-term outperformance.

Terry Smith analyses the pharmaceutical industry, concluding that many companies are flattering their true performance by encouraging the market to focus on 'underlying' earnings that do not reflect reality.

In this interview between Terry Smith and Maike Currie, Terry speaks about Warren Buffett's approach to investment and how he has used these principals in his investment strategy.

Terry Smith explains that although many investors are attracted to income funds and high-yield equities, what they should be doing is seeking to maximise their total return.

Terry Smith points out that 'income' has become a label for funds that seems to mesmerise investors and questions the whole importance attached to yield.

Terry Smith says that investors can learn a lot from the world of sport. Like in sport betting, many investors spend their time trying to predict the next big winner in a sector, particularly in technology, despite the difficulty of forecasting developments in this area.

Terry Smith cites the methods of professional horse racing gambler Alex Bird as an example of the lessons that investors can learn from the world of sports.