Anyone outside the U.K. can't invest with them because these UK‑ and EU‑domiciled funds are not registered for sale to U.S. persons.
Fundsmith offers U.S.-domiciled versions of its funds, structured as Delaware Limited Partnerships (e.g., Fundsmith Equity Fund LP and Fundsmith Sustainable Equity Fund LP), specifically designed for U.S. investors.
You should check with your broker if the option is available.
I know Terry Smith - in fact, I used to work for him.
He is a nice guy - very smart - and has generated very strong returns (although the last couple of years have been poor).
But the comparison to Warren Buffett? I've heard it before - I think a journalist once used it to sensationalize an article and it stuck.
It's nonsense.
They couldn't be more different. Smith runs the Fundsmith fund which principally invests in public equities. He is a fund manager. They buy and sell interests in companies and while some holdings run to many years, even a decade, they are not investing permanent capital in anything.
Buffett is the CEO and Chairman of a conglomerate. He does invest permanent capital and buys many businesses outright. Furniture stores, railways, energy infrastructure, insurance, etc. He uses insurance float to amplify returns. He does run a public market portfolio of stock - but even then likes to hold on almost forever to some companies (AMEX since 1965 and still holding, Coca Cola since 1988 and still holding).
I see some similarities in personality from what I’ve heard in the numerous interviews and videos I have seen and listened to. These personalities reflect somewhat in his investing.
I do, however, agree that it’s more sensational than factual.
I am unimpressed. According to the table provided he outperformed the S+P nicely in 2011, 2014 and 2015. In the subsequent nine years he has underformed or barely matched the S+P with very serious underperformance in 2023 and 2024.
I'd be more inclined to conclude that if he ever had an edge it has not been evident since 2015. Maybe he needs to ditch his strategy and start anew.
Looking in isolation, it might not be impressive. But looking at the total CAGR and total % return, his fund outperforms the market (annualized). Aiming for outperformance year over year is unrealistic. It’s about a long period with an annualized return that beats the market that matters.
As mentioned in the note, the returns might not be as accurate. The fact remains that Fundsmith has an annualized return of ~15.2% since 2010 while the s&p 500 has ~12.8%.
Outperformance, even with the couple % Fundsmith is doing, has significant impact on your capital of an extended period of time.
Although not breath taking, I applaud the results and his manners in investing.
How do you invest if you're an American? Says they don't accept investors from the US.
Anyone outside the U.K. can't invest with them because these UK‑ and EU‑domiciled funds are not registered for sale to U.S. persons.
Fundsmith offers U.S.-domiciled versions of its funds, structured as Delaware Limited Partnerships (e.g., Fundsmith Equity Fund LP and Fundsmith Sustainable Equity Fund LP), specifically designed for U.S. investors.
You should check with your broker if the option is available.
I know Terry Smith - in fact, I used to work for him.
He is a nice guy - very smart - and has generated very strong returns (although the last couple of years have been poor).
But the comparison to Warren Buffett? I've heard it before - I think a journalist once used it to sensationalize an article and it stuck.
It's nonsense.
They couldn't be more different. Smith runs the Fundsmith fund which principally invests in public equities. He is a fund manager. They buy and sell interests in companies and while some holdings run to many years, even a decade, they are not investing permanent capital in anything.
Buffett is the CEO and Chairman of a conglomerate. He does invest permanent capital and buys many businesses outright. Furniture stores, railways, energy infrastructure, insurance, etc. He uses insurance float to amplify returns. He does run a public market portfolio of stock - but even then likes to hold on almost forever to some companies (AMEX since 1965 and still holding, Coca Cola since 1988 and still holding).
I don't see the similarity. Do you?
I see some similarities in personality from what I’ve heard in the numerous interviews and videos I have seen and listened to. These personalities reflect somewhat in his investing.
I do, however, agree that it’s more sensational than factual.
I am unimpressed. According to the table provided he outperformed the S+P nicely in 2011, 2014 and 2015. In the subsequent nine years he has underformed or barely matched the S+P with very serious underperformance in 2023 and 2024.
I'd be more inclined to conclude that if he ever had an edge it has not been evident since 2015. Maybe he needs to ditch his strategy and start anew.
Looking in isolation, it might not be impressive. But looking at the total CAGR and total % return, his fund outperforms the market (annualized). Aiming for outperformance year over year is unrealistic. It’s about a long period with an annualized return that beats the market that matters.
As mentioned in the note, the returns might not be as accurate. The fact remains that Fundsmith has an annualized return of ~15.2% since 2010 while the s&p 500 has ~12.8%.
Outperformance, even with the couple % Fundsmith is doing, has significant impact on your capital of an extended period of time.
Although not breath taking, I applaud the results and his manners in investing.