What Terry Smith IS SAYING
Financial Times - There are only two types of investors
I last wrote about the problems of so-called market timing in these pages in 2013 (Market timing: don’t try this at home). With the Covid-19 pandemic dominating the news and recent volatility on world stock markets, you may have heard a lot about market timing again...
Financial Times - Never let a crisis go to waste
We now have a fully-fledged economic crisis caused by the reaction to the Covid-19 pandemic. What should you do about it in terms of investment? I would strongly advise avoiding the approach of many investment advisers or analysts...
Money Observer - Fundsmith’s Terry Smith: forecasters are like Michael Fish
Tumult, turbulence and turmoil are just the words beginning with the letter T used by commentators to describe the behaviour of stock markets in October. I think it’s always good to look at the definition of the words we are being asked to accept. For example: turmoil, noun: a state of great disturbance, confusion, or uncertainty . synonyms: confusion, upheaval(s), turbulence, tumult, disorder.
Financial Times - Busting the myths of investment: who needs income?
There seems to be something so alluring about dividend income that it often seems to lead investors to abandon common sense or be encouraged to do so by the investment industry. For example, how many times have you heard it said that the majority of returns from investment in equities comes from reinvestment of the dividends?
Financial Times - Busting the myths of investment
Adding small-caps to a global equity portfolio adds value without heightening the risk.
If you are an investor you may have encountered these two adages. First, that in order to earn a higher return you must take greater risk. Second, asset allocation is the most important contributor to performance.
Financial Times – ESG? SRI? Is your green portfolio really green?
You decide to buy a car. You tell the dealer you want to be environmentally responsible and trust him to supply something appropriate. You had an electric car in mind but he supplies a hybrid. Not too bad, but when it arrives you find that the internal-combustion part of the power plant is a diesel supplied by a German maker caught lying about emissions.
Financial Times – AstraZeneca is beginning to look like Tesco
It might be tempting to view last week’s fall in the AstraZeneca share price in isolation, related to the results of the “Mystic” lung cancer drug trial. However, I suspect that AstraZeneca’s problems go much deeper than a setback for a single drug.