Terry Smith, a British investing titan and manager of the Fundsmith Equity Fund, shares his remarkable journey from poverty to becoming a billionaire. He discusses his knack for spotting great businesses, revealing why many of his favorites are over a century old. Smith candidly critiques sectors like tech, expressing skepticism about Tesla while praising Microsoft's business model. He explains the importance of understanding economic realities in investing and shares lessons learned from Sir John Templeton, all while emphasizing resilience in the face of professional challenges.

On today’s episode, Clay Finck discusses the investment philosophies and framework of Terry Smith, who is the founder and CEO of Fundsmith and also known as the Warren Buffett of Great Britain. Smith started Fundsmith in 2010, and ever since has returned 478% to his investors versus his benchmark returning 256%. He did this using the simple framework of buying good companies, not overpaying, and holding them for the long-term.IN THIS EPISODE YOU’LL LEARN:00:00 - Intro02:12 - Why Terry Smith only seeks to own high-quality companies.04:52 - How investors can go about determining the quality of a business.08:01 - How Terry Smith compares the valuation of his portfolio against that of the S&P 500.15:15 - Why investors must be cognizant of stock-based compensation when valuing a company.29:28 - Why macroeconomic views and opinions are irrelevant for investors in quality businesses.46:39 Why stocks are the best long-term investment relative to other asset classes.53:51 - What Terry Smith’s top US equity holdings are today.Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.BOOKS AND RESOURCES Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, and the other community members. Terry Smith’s Shareholder Letters. Rebecca’s Article on Mean Reversion. Don’t miss our review of Four Wide Moat Stocks for 2023. Check out our takeaways from Warren Buffett's Shareholder Letters. Follow Clay on Twitter. NEW TO THE SHOW? Check out our We Study Billionaires Starter Packs. Browse through all our episodes (complete with transcripts) here. Try our tool for picking stock winners and managing our portfolios: TIP Finance Tool. Enjoy exclusive perks from our favorite Apps and Services. Stay up-to-date on financial markets and investing strategies through our daily newsletter, We Study Markets. Learn how to better start, manage, and grow your business with the best business podcasts.  SPONSORSSupport our free podcast by supporting our sponsors: River Toyota Sun Life The Bitcoin Way Range Rover Sound Advisory BAM Capital Fidelity SimpleMining Briggs & Riley Public Shopify HELP US OUT!Help us reach new listeners by leaving us a rating and review on Apple Podcasts! It takes less than 30 seconds, and really helps our show grow, which allows us to bring on even better guests for you all! Thank you – we really appreciate it!Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fmSupport our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fmSupport our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fmSupport our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fmSupport our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fmSupport our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fmSupport our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fmSupport our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fmSupport our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fmSupport our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fmSupport our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fmSupport our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fmSupport our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fmSupport our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fmSupport our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm

Terry Smith, Chief Executive and Chief Investment Officer at Fundsmith, shares insightful perspectives on the investment landscape while managing over £22bn of British savers' funds. He critiques the hype around Nvidia, discussing the complexities of tech investments amidst AI trends. The impact of emerging weight-loss drugs on consumer behavior and companies like Diageo is also examined. Smith emphasizes the importance of quality in companies, analyzing brands like Nike and the nuances of investing in both UK and smaller firms with growth potential.

Terry Smith, the CEO of Fundsmith and often dubbed the UK's answer to Warren Buffet, shares his remarkable transition from Barclays Bank to entrepreneurship. He discusses the risks of publishing his controversial paper, which cost him his job but sparked his career as a financial disruptor. Living in Mauritius, he contrasts life there with Dubai, and offers insights on leadership and investment strategies. Terry emphasizes integrity in business and advises aspiring fund managers on the importance of patience and disciplined investing.

Terry Smith, referred to as 'the English Warren Buffett', discusses his investing style and success. He explains the genesis of Fundsmith, its mission, and what he looks for in companies. He also discusses the decline of research standards, the problem with management presentations, and his passion for military history.

Terry Smith discusses the power of compound interest and the value of reinvesting profits in businesses. He emphasizes the importance of return on capital employed, diversification with around 20 companies, and a patient, low turnover strategy. Smith also talks about analyzing original financial statements over adjusted numbers, maximizing returns, evaluating investments, and the importance of extensive learning before investing.

Chris Hohn, Terry Smith, Josh Tarasoff, Michael Burry, and Thomas Russo talk about recent stock market gains, their well-performing portfolios including Netflix and Amazon, investment philosophies of Smith and Hone, the sale of Spotify's position, and an analysis of Russo's conservative portfolio holdings.

Terry Smith, manager of Fundsmith Equity, shares his expertise on navigating today's challenging stock market landscape. He discusses the significant influence of tech heavyweights and the rise of passive investing. Terry reveals his recent stock purchases while explaining why he sold Diageo and opted against Nvidia. He challenges conventional views on dividends, advocating for a focus on total returns over income. Additionally, he provides insights into the UK stock market and cautions against the pitfalls of mistaking low prices for true value.

Explore how Terry Smith beats the market with quality stocks, his 10 investing rules, portfolio management insights, performance fees analysis, and the criteria for good companies. Dive into Fundsmith's standout features, businesses resilient to change, and the replicability of outperformance.

Terry Smith, investing legend, shares 7 investing lessons. They discuss the flywheel effect and the recent Fed increase. India's potential for growth and investment opportunities are highlighted. The speakers explore political risks in China and WhatsApp's popularity in India.