I just watched a recording of the Fundsmith Equity Fund Shareholder Meeting – see https://www.fundsmith.co.uk/tv/ . As usual it was a mixture of jokes and serious analysis of Terry Smith’s investment process.
Yet again his prejudices (and to a large extent mine) were made plain – no banks, no insurance companies, no miners, no oil/gas companies, no property companies, etc. But the portfolio companies achieved a Return on Capital Employed of 32%. That’s better than in previous years and almost twice the return of companies in the FTSE-100.
I have no doubt that the Fundsmith Equity Fund will continue to have a decent performance so I am happy to continue holding.
Roger Lawson (Twitter: https://twitter.com/RogerWLawson )
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