Terry Smith Fundsmith LLP
Terry Smith is the founder and CEO of Fundsmith, a firm known for a concentrated portfolio of high-quality global companies. His approach favors simple, understandable businesses with high returns on capital and the ability to reinvest at attractive rates. Smith’s annual letters and plain-spoken commentary have made Fundsmith a frequent reference point for long-only quality investors.
Top Buys
| Rank | Stock | Value |
|---|---|---|
| 1 |
McDonald's
MCD
|
+$1.96B |
| 2 |
3M
MMM
|
+$142M |
| 3 |
Philip Morris
PM
|
+$133M |
| 4 |
PepsiCo
PEP
|
+$113M |
| 5 |
Estee Lauder
EL
|
+$89.8M |
Top Sells
| Rank | Stock | Value |
|---|---|---|
| 1 |
Microsoft
MSFT
|
+$1.1B |
| 2 |
PayPal
PYPL
|
+$1.21M |
| 3 |
Visa
V
|
+$108K |
Sector Composition
| Rank | Sector | Weight |
|---|---|---|
| 1 | Healthcare | 31.7% |
| 2 | Consumer Staples | 19.47% |
| 3 | Financials | 15.06% |
| 4 | Technology | 11.81% |
| 5 | Consumer Discretionary | 9% |
| Name | Market Value | Portfolio Weight | Shares or Principal |
Change in Stake | Capital Flow | |
|---|---|---|---|---|---|---|
|
1
PayPal
PYPL
$52.7B
| $1.27B | 9.43% |
15,209,740
-15,227
| -0.1% | -$1.21M |
|
|
2
McDonald's
MCD
$192B
| $1.19B | 8.87% |
+12,080,320
| New | +$1.96B |
|
3
Meta Platforms (Facebook)
META
$1.4T
| $1.07B | 7.98% |
5,517,803
+374,922
| +7% | +$67.8M |
|
4
Idexx Laboratories
IDXX
$43.9B
| $965M | 7.18% |
4,429,104
+1,447
| +0% | +$298K |
|
5
Stryker
SYK
$126B
| $932M | 6.93% |
5,516,662
+2,215
| +0% | +$373K |
|
6
Waters Corp
WAT
$40.4B
| $915M | 6.81% |
4,728,994
+360,404
| +8% | +$71M |
|
7
Becton Dickinson
BDX
$52.3B
| $895M | 6.66% |
3,828,456
+132,402
| +4% | +$29.5M |
|
|
8
Philip Morris
PM
$293B
| $846M | 6.29% |
10,475,148
+1,566,361
| +18% | +$133M |
|
|
9
PepsiCo
PEP
$196B
| $836M | 6.22% |
7,681,927
+1,098,314
| +17% | +$113M |
|
10
Intuit
INTU
$100B
| $811M | 6.04% |
3,969,347
+1,672
| +0% | +$321K |
|
11
Automatic Data Processing
ADP
$112B
| $776M | 5.78% |
5,786,490
+8,507
| +0.1% | +$1.08M |
|
|
12
Visa
V
$693B
| $758M | 5.64% |
5,719,877
-841
| -0% | -$108K |
|
|
13
Estee Lauder
EL
$36.9B
| $702M | 5.22% |
4,916,559
+607,099
| +14% | +$89.8M |
|
|
14
3M
MMM
$92.3B
| $668M | 4.98% |
4,064,214
+832,129
| +26% | +$142M |
|
15
Johnson & Johnson
JNJ
$651B
| $553M | 4.11% |
4,555,486
+228,175
| +5% | +$28.5M |
|
16
Colgate-Palmolive
CL
$72.6B
| $232M | 1.73% |
3,586,659
+458,925
| +15% | +$30M |
|
17
Marriott International
MAR
$92.9B
| $17.4M | 0.13% |
137,544
+802
| +0.6% | +$109K |
|
|
18
Microsoft
MSFT
$3.59T
| – | – |
-12,075,307
| Closed | -$1.1B |
|
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Terry Smith's Q2 2018 Portfolio in Review
As of Q2 2018, Terry Smith held 18 positions worth $13.4B, up 11% from $12.1B the previous quarter. Its ten largest holdings account for 72% of the portfolio.
Terry Smith deployed $1.56B of net new capital in Q2 2018, opening 1 new position and adding to 14 existing holdings. Its largest new stake was McDonald's: 12,080,320 shares worth $1.19B.
By sector, the portfolio is most concentrated in Healthcare at 32% of assets, down from 32% a quarter earlier, followed by Consumer Staples and Financials.
On the sell side, the largest reduction was PayPal, an estimated $1.21M trimmed.
- Terry Smith's largest Q2 2018 buy was McDonald's: 12,080,320 shares worth $1.19B.
- Terry Smith added most to 3M in Q2 2018, an estimated $142M increase.
- Terry Smith's biggest Q2 2018 reduction was PayPal, cutting an estimated $1.21M.
- Terry Smith fully exited Microsoft in Q2 2018, selling an estimated $1.1B.
- Terry Smith's ten largest holdings make up 72% of its $13.4B portfolio in Q2 2018.
- Terry Smith opened 1 new position and closed 1 in Q2 2018.
- Terry Smith's portfolio value rose 11% quarter-over-quarter to $13.4B.
Based on Fundsmith LLP's 13F filing for Q2 2018, filed 22 Aug 2018.