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 |
Microsoft
MSFT
|
+$1.31B |
| 2 |
Philip Morris
PM
|
+$159M |
| 3 |
Estee Lauder
EL
|
+$134M |
| 4 |
Colgate-Palmolive
CL
|
+$98.2M |
| 5 |
Meta Platforms (Facebook)
META
|
+$80.2M |
Top Sells
| Rank | Stock | Value |
|---|---|---|
| 1 |
McDonald's
MCD
|
+$1.19B |
| 2 |
PayPal
PYPL
|
+$663K |
| 3 |
Idexx Laboratories
IDXX
|
+$597K |
| 4 |
Visa
V
|
+$588K |
Sector Composition
| Rank | Sector | Weight |
|---|---|---|
| 1 | Healthcare | 31.35% |
| 2 | Technology | 21.37% |
| 3 | Consumer Staples | 20.92% |
| 4 | Financials | 14.71% |
| 5 | Communication Services | 6.57% |
| Name | Market Value | Portfolio Weight | Shares or Principal |
Change in Stake | Capital Flow | |
|---|---|---|---|---|---|---|
|
1
Microsoft
MSFT
$3.59T
| $1.38B | 9.26% |
+12,074,060
| New | +$1.31B |
|
|
2
PayPal
PYPL
$52.7B
| $1.34B | 8.96% |
15,202,210
-7,530
| -0% | -$663K |
|
|
3
Idexx Laboratories
IDXX
$43.9B
| $1.11B | 7.41% |
4,426,643
-2,461
| -0.1% | -$597K |
|
|
4
Philip Morris
PM
$293B
| $1.01B | 6.79% |
12,409,367
+1,934,219
| +18% | +$159M |
|
5
Stryker
SYK
$126B
| $981M | 6.58% |
5,521,353
+4,691
| +0.1% | +$801K |
|
|
6
Meta Platforms (Facebook)
META
$1.4T
| $980M | 6.57% |
5,960,662
+442,859
| +8% | +$80.2M |
|
7
Waters Corp
WAT
$40.4B
| $979M | 6.56% |
5,026,559
+297,565
| +6% | +$57.6M |
|
8
Becton Dickinson
BDX
$52.3B
| $977M | 6.55% |
3,836,618
+8,162
| +0.2% | +$2.01M |
|
9
Intuit
INTU
$100B
| $930M | 6.24% |
4,090,229
+120,882
| +3% | +$26M |
|
10
PepsiCo
PEP
$196B
| $913M | 6.13% |
8,170,141
+488,214
| +6% | +$55.3M |
|
11
Automatic Data Processing
ADP
$112B
| $876M | 5.87% |
5,812,535
+26,045
| +0.5% | +$3.68M |
|
|
12
Visa
V
$693B
| $858M | 5.75% |
5,715,741
-4,136
| -0.1% | -$588K |
|
|
13
Estee Lauder
EL
$36.9B
| $855M | 5.73% |
5,880,997
+964,438
| +20% | +$134M |
|
14
3M
MMM
$92.3B
| $735M | 4.93% |
4,170,139
+105,925
| +3% | +$18.2M |
|
15
Johnson & Johnson
JNJ
$651B
| $633M | 4.25% |
4,581,202
+25,716
| +0.6% | +$3.42M |
|
|
16
Colgate-Palmolive
CL
$72.6B
| $339M | 2.27% |
5,061,560
+1,474,901
| +41% | +$98.2M |
|
17
Marriott International
MAR
$92.9B
| $21.1M | 0.14% |
159,638
+22,094
| +16% | +$2.82M |
|
|
18
McDonald's
MCD
$192B
| – | – |
-12,080,320
| Closed | -$1.19B |
|
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Terry Smith's Q3 2018 Portfolio in Review
As of Q3 2018, Terry Smith held 18 positions worth $14.9B, up 11% from $13.4B the previous quarter. Its ten largest holdings account for 71% of the portfolio.
Terry Smith deployed $757M of net new capital in Q3 2018, opening 1 new position and adding to 13 existing holdings. Its largest new stake was Microsoft: 12,074,060 shares worth $1.38B.
By sector, the portfolio is most concentrated in Healthcare at 31% of assets, down from 32% a quarter earlier, followed by Technology and Consumer Staples.
On the sell side, the largest reduction was PayPal, an estimated $663K trimmed.
- Terry Smith's largest Q3 2018 buy was Microsoft: 12,074,060 shares worth $1.38B.
- Terry Smith added most to Philip Morris in Q3 2018, an estimated $159M increase.
- Terry Smith's biggest Q3 2018 reduction was PayPal, cutting an estimated $663K.
- Terry Smith fully exited McDonald's in Q3 2018, selling an estimated $1.19B.
- Terry Smith's ten largest holdings make up 71% of its $14.9B portfolio in Q3 2018.
- Terry Smith opened 1 new position and closed 1 in Q3 2018.
- Terry Smith's portfolio value rose 11% quarter-over-quarter to $14.9B.
Based on Fundsmith LLP's 13F filing for Q3 2018, filed 9 Nov 2018.