Terry Smith
Terry Smith
Investment Philosophy
Terry Smith runs Fundsmith with a deceptively simple philosophy: buy good companies, don’t overpay, do nothing. His approach is to identify companies with sustainably high returns on operating capital employed, strong competitive advantages, and growth opportunities — then hold them essentially forever.
Fundsmith’s portfolio turnover is remarkably low, typically under 10% per year. Smith avoids entire sectors he considers structurally unattractive — banks, airlines, utilities, and commodities — focusing instead on consumer staples, healthcare, and technology companies with asset-light business models and recurring revenues.
His annual letters to shareholders are masterclasses in clear thinking about business quality, capital allocation, and the mathematics of compounding. Smith’s track record demonstrates that disciplined inactivity — resisting the urge to trade — is one of the most powerful edges available to long-term investors.
Current Portfolio
Source: SEC 13F Filing (Q4 2025)
| Ticker / Security Name | Shares (MM) | Δ Shares (%) | Value (Full $) | Portfolio (%) |
|---|---|---|---|---|
| WAT / Waters Corporation | 3.56 | -10.05% | $1,351,430,000 | 7.90% |
| SYK / Stryker Corporation | 3.69 | -19.68% | $1,296,050,000 | 7.57% |
| IDXX / IDEXX Laboratories, Inc. | 1.88 | -28.13% | $1,269,190,000 | 7.42% |
| V / Visa Inc. | 3.53 | -8.29% | $1,239,650,000 | 7.24% |
| MAR / Marriott International, Inc. | 3.98 | -5.87% | $1,234,730,000 | 7.21% |
| GOOG / Alphabet Inc. | 3.50 | -44.37% | $1,095,040,000 | 6.40% |
| ADP / Automatic Data Processing, Inc. | 4.18 | -3.10% | $1,074,700,000 | 6.28% |
| MSFT / Microsoft Corporation | 2.08 | -19.49% | $1,005,920,000 | 5.88% |
| PM / Philip Morris International Inc. | 6.12 | -14.80% | $982,390,000 | 5.74% |
| META / Meta Platforms, Inc. | 1.36 | -12.52% | $900,060,000 | 5.26% |
| MTD / Mettler-Toledo International | 0.58 | -1.72% | $809,340,000 | 4.73% |
| PG / The Procter & Gamble Company | 4.25 | -7.19% | $608,790,000 | 3.56% |
| CHD / Church & Dwight Co., Inc. | 6.73 | -0.97% | $564,180,000 | 3.30% |
| FTNT / Fortinet, Inc. | 6.52 | -22.61% | $517,440,000 | 3.02% |
| ZTS / Zoetis Inc. | 3.90 | +7.90% | $490,800,000 | 2.87% |
| TXN / Texas Instruments Inc. | 2.62 | -3.61% | $455,160,000 | 2.66% |
| INTU / Intuit Inc. | 0.63 | +3.50% | $414,420,000 | 2.42% |
| NKE / Nike, Inc. | 5.77 | -5.86% | $367,620,000 | 2.15% |
| OTIS / Otis Worldwide Corporation | 3.11 | -46.51% | $271,870,000 | 1.59% |
| NTNX / Nutanix, Inc. | 1.38 | NEW | $71,190,000 | 0.42% |
| VRT / Vertiv Holdings Co | 0.41 | -30.52% | $66,580,000 | 0.39% |
| ADMA / ADMA Biologics, Inc. | 2.10 | NEW | $38,340,000 | 0.22% |
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