Terry Smith's Stock Portfolio
Overview
Terry Smith is the closest thing Britain has to Warren Buffett — and he'd probably bristle at the comparison, then argue he's better. He founded Fundsmith in 2010 on a radical premise: buy a small number of high-quality businesses, never sell them, and do nothing. The fund has delivered exceptional returns since launch while barely turning over the portfolio. Smith is also one of the sharpest and most entertaining writers in finance — his annual letters are among the best anywhere, and he has no patience for fads, complicated financial products, or companies that try to grow by acquisition. His dismissals of 'jam tomorrow' tech valuations and ESG performance-washing are worth reading even if you disagree.
Primary Resources
Straight from the investor or their firm — the highest-signal material available.
The letters are mandatory reading. The Owner's Manual explains the investment philosophy in one document. Start there, then read the annual letters in sequence — watching him apply the framework year after year is instructive.
Every AGM since the fund's founding is on YouTube. Smith goes stock by stock through the portfolio and answers questions from shareholders. The best annual investing ritual in Britain.
Regularly shares short-form views on markets, corporate governance, and accounting. As pointed in 280 characters as in his letters.
Key Talks & Interviews
Curated, not exhaustive — the one or two appearances worth your time if you're new to this investor.
If you only watch one AGM, make it a recent one — the framework is fully developed and Smith is at his most direct about what he thinks of markets and the portfolio.
One of the best podcast interviews — covers his philosophy on quality businesses, why he hates diversification, and his views on ESG as practised.
Smith explains exactly what characteristics he looks for in a business — high returns on capital, pricing power, growth without capital — better than in almost any other format.