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The Intellectual Edge's avatar

Regardless of his somewhat iffy recent performance, he has so much good advice to offer. His book 'investing for growth' is a bit of a gem. An example of doing the basics very well, thanks for a great post :)

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Kingswell's avatar

Thanks! I completely agree. Terry Smith is such a great character and always has something interesting to say.

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JAS's avatar

Well deserved praise for Terry Smith.

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Kingswell's avatar

I’m so glad they post a video of the Q&A session from the Fundsmith AGM. Lots to learn from him.

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SHP's avatar

short article with lots of question marks :-)

Where and when did Buffett supposedly say he likes seeing a 100% loss just to then get a 50% gain? 😄 Basic math check? That would be: 1) a total loss, and 2) even if a stock drops 99.99% and then rises 50%, it's mathematical nonsense… you'd need a 100x to get back to even.

Also, Terry has always had a positive stance on Adyen. But when the stock crashed 50% in summer 2023, he didn’t touch it. Too volatile for his taste 😉 In the February 2024 shareholder meeting, he actually voiced concerns about the sharp price drop. Just look where the stock is now :)

And if Terry is so critical of dividends (I’m not a fan myself), maybe he should take a closer look at some of his consumer staples giants… those companies basically only still exist for investors because of their dividends.

As for Amazon – hard to believe he complained about the valuation with a straight face. 1) Amazon is cheaper than it’s ever been (P/E never really applied to Amazon and I’m sure Terry knows that), and 2) he only held Amazon briefly years ago and sold – so it’s not exactly relevant for him today.

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