![Rolling Eyes :roll:](./images/smilies/icon_rolleyes.gif)
The other one he may buy is Google since it’s Roic is now over 20%, he had to wait for it to go up 300% over the last 5 years before he could buy it,
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Kenton23 wrote:Is it just me that finds this strange? I’ve just rewatched Terry’s comments on this from the 2021 AGM in which he says, essentially, that the team don’t like Amazon as the retail part doesn’t make (much) money and is cross subsidised by the web services business. If he could take just the web services part he’d be interested. This was only c. 8 months ago.
Other than speculation about the web services part being spun off, can anyone make an educated guess as to what has changed?
Thanks in advance. To be clear, I’m not being critical as the FS team have been v good for me and I remember particularly being a bit aghast when they bought Facebook which so far has been a good investment and prescient.
Any views welcomed. Thanks.
crazypanda wrote:Kenton23 wrote:Is it just me that finds this strange? I’ve just rewatched Terry’s comments on this from the 2021 AGM in which he says, essentially, that the team don’t like Amazon as the retail part doesn’t make (much) money and is cross subsidised by the web services business. If he could take just the web services part he’d be interested. This was only c. 8 months ago.
Other than speculation about the web services part being spun off, can anyone make an educated guess as to what has changed?
Thanks in advance. To be clear, I’m not being critical as the FS team have been v good for me and I remember particularly being a bit aghast when they bought Facebook which so far has been a good investment and prescient.
Any views welcomed. Thanks.
I suspect the retail business may have been re-rated by Fundsmith (unless they suspect a break up to happen soon?). With the end of the cookie and Amazons ad business likely to benefit from this it could make it an even more interesting proposition. The ad stream is probably not talked about enough and is leading the way when it comes to retail media.
ADrunkenMarcus wrote:I have no doubt Terry will be asked about this at the next AGM!
Neither shall I be deterred from doing what I am convinced is right by the fact that I have thought differently about it in some distant, or even in some recent, past.
Fluke wrote:I remember him saying that Walmart and Costco were more interesting businesses than Amazon, or words to that effect. It'll be interesting to hear his explanation.
BullDog wrote:Insight from Terry Smith towards the end of this video about him buying into Amazon for the Fundsmith fund after saying for long he wasn't interested. For those who are familiar with Smith's frequent interviews, you may with to fast forward through the video since much of it says nothing new. Also he addresses, again, the thinking that at £27 billion the fund is too big for it's own good.
https://play.acast.com/s/a4c5de36-8260- ... 424cf6e130
#462528
Post by BullDog » December 2nd, 2021, 9:23 am
Insight from Terry Smith towards the end of this video about him buying into Amazon for the Fundsmith fund after saying for long he wasn't interested. For those who are familiar with Smith's frequent interviews, you may with to fast forward through the video since much of it says nothing new. Also he addresses, again, the thinking that at £27 billion the fund is too big for it's own good.
https://play.acast.com/s/a4c5de36-8260- ... 424cf6e130
KnightOfSpring wrote:#462528
Post by BullDog » December 2nd, 2021, 9:23 am
Insight from Terry Smith towards the end of this video about him buying into Amazon for the Fundsmith fund after saying for long he wasn't interested. For those who are familiar with Smith's frequent interviews, you may with to fast forward through the video since much of it says nothing new. Also he addresses, again, the thinking that at £27 billion the fund is too big for it's own good.
https://play.acast.com/s/a4c5de36-8260- ... 424cf6e130
Yes I also thought it was well worth 32 minutes listening to all of it (I listened at 1.4x speed). Also liked the Amazon explanation and the differences of taking spending through the P and L or balance sheet.
One question I would have liked to have been asked was about Fundsmith selling so many UK stocks (I think there are just Diageo and Unilever hanging on in there now). I had cut my stake by approx 25-50% in Sage, Intertek and Reckitts after FundSmith sold, but decided I was not too concerned about the Intercontinental Hotels sale, and indeed even bought some more on the recent weakness (below £45). None of the three sales have had anything particularly concerning happen to them yet, in fact the areas of concern at Sage and Reckitts may be being sorted out. Still it was good to hear as I guessed that IHG was mainly a valuation thing (I guess they exited around £52). Perhaps the UK stocks were also a size/tidying up exercise- think from the country data the companies sold were pretty small in terms of the fund and maybe if Terry didn't want to buy more, he figured he may as well just sell them.
Would also have been good to have heard Terry's thoughts on his payment companies, especially Paypal, which was his second largest holding at the end of October I think, but has been falling rapidly (granted it had been very strong from the bottom of the pandemic until July 2021)
Unilever has been sold. TBH, I wish I had followed suit and sold it too. Price has dropped since FS sold it.
KnightOfSpring wrote:Unilever has been sold. TBH, I wish I had followed suit and sold it too. Price has dropped since FS sold it.
Where did you find out Unilever had been sold? It is mentioned in July 2021 factsheet and I think since then they say they have exited from just Becton Dickinson and Intercontinental Hotels. Fundsmith Sustainable Equity Fund still holds Unilever although this is not what either of us are referring to.
I wish I had sold Unilever before the price drop, but this would apply to anything, as I would be able to buy it back and have more shares (unless I had missed out on more dividend income than the price drop). Unilever's stake in Hindustan Unilever is what I find most attractive about holding Unilever.
You know, I think you're right. I apologise if I made a mistake. I can't see a Unilever sale in the last 6 months monthly fact sheets. In fact, having looked, it is Blue Whale Growth Fund (another fund that I follow) that sold out of Unilever this last few months. Sorry about that.
KnightOfSpring wrote:You know, I think you're right. I apologise if I made a mistake. I can't see a Unilever sale in the last 6 months monthly fact sheets. In fact, having looked, it is Blue Whale Growth Fund (another fund that I follow) that sold out of Unilever this last few months. Sorry about that.
No problem. I'm not normally so sharp on these things but Unilever is about 14% of my portfolio and Terry Smith is my favourite Fund Manager so it's something a keep a close eye on. Terry certainly made reference to Unilever was being in danger of being kicked out but has since said that with the distribution network it has "it should probably be alright".
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