More Good Sense from Terry Smith

[doug2500]

A good, and timely article from Mr. Smith.

https://www.fundsmith.co.uk/news/article/2016/10/29/the-telegraph-stay-focused-on-the-'known-knowns'

[samosh]

Great article

[Raptor]

Good Article but a couple of points.

First and foremost, invest in the shares of good businesses. They are not that difficult to identify, having typically been around for ages and produced good financial results by providing products and services that customers want.

Tesco's, Pearson? 2008 and the banks. Not disagreeing as what is said is a good starting point for selection.

Second, stick to investing in things you understand

If I was to implement that I would never have any service related shares as they are so complex, in some cases, that working out what they do is sometimes impossible. I thought I understood Pearson, then they go and sell the "family jewels".

I love the final paragraph though. Don't try to time the market, if you have money and the share meets all your criteria buy it. Tomorrow it may go up but it may also go down, buy it and stop worrying.

Raptor.

[Dod1010]

I would never have any service related shares as they are so complex,



Raptor.

If you mean support services then I think you would be doing yourself a favour.

[simoan]

Good Article but a couple of points.

Tesco's, Pearson? 2008 and the banks. Not disagreeing as what is said is a good starting point for selection.

Raptor.

You'd need to understand more about the approach to investment that Terry Smith uses. High Return On Capital (ROCE) is the main factor. There's no way he would ever invest in Tesco or Pearson. In fact, his thoughts on Tesco and the warning signs that should have been clear to all investors are very well publicised: https://www.ft.com/content/8f866d16-328 ... 144feabdc0

All the best, Si

[Raptor]

simoan

Thanks for the link. Obviously I have not read everything he has said in the past. My comments were just on the "article" pointed to at the beginning. But what do I know, brought Tesco 2 days before they admitted the "hole".......

Will certainly be taking a lot more interest in his articles now.

Raptor.

[simoan]

simoan

Thanks for the link. Obviously I have not read everything he has said in the past. My comments were just on the "article" pointed to at the beginning. But what do I know, brought Tesco 2 days before they admitted the "hole".......

Will certainly be taking a lot more interest in his articles now.

Raptor.

If Terry Smith says something, it's worth listening. Here's a good starting point if you want to look through his back catalogue of similar articles: https://www.fundsmith.co.uk/news/articl ... -is-saying

All the best, Si