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@Muttley24133
@Muttley24133 15 күн бұрын
Not true. In a lot of cases Terry buys companies even with free cash flow yield of 2%.
@Pizza-gb1ch
@Pizza-gb1ch 4 ай бұрын
CL has a long runway, potentially, but the progress is slow.
@derwaldbaer5707
@derwaldbaer5707 4 ай бұрын
This is complete bogus, because company A can pay out the gains as a dividend, and the investor can do the compounding by investing the dividend into other opportunities.
@Fazzamania
@Fazzamania 7 ай бұрын
Shutting your fund down isn’t how to invest in emerging markets.
@silverheart573
@silverheart573 4 ай бұрын
He who knows he can't invest and return whatever left of investors` money or he who doesn't know he can't invest and keep destroying investors` money. He is Honest and Competence enough to do the right thing as a fund manager.
@joeindo9174
@joeindo9174 Жыл бұрын
do you know the date of this talk?
@12496k
@12496k Жыл бұрын
👏
@ottoliaandrea2690
@ottoliaandrea2690 Жыл бұрын
I think Terry Smith is excellent
@rowanwood5397
@rowanwood5397 Жыл бұрын
He won't invest in technological innovation? Well, that rules out, Amazon, Microsoft, Apple, Facebook, Tesla, and many more of the very best performing stocks of the last 30 years. I appreciate that he cannot understand it but no one ever fully understands a company. Investors only understand parts of it. You only need to understand enough to make good decisions. see Mosaic Theory. To rule out investing in technological innovation, completely, is overkill and silly in my opinion. Honestly, his speech on not investing technological innovation is incredibly stupid. The analogies he uses are stupid. He compares it to investing in the Wright brothers. Then he says technological innovative destroys sectors and he uses this as a reason to not invest in "technological innovation" (wtf). That's some ass backward logic. ~ Later he says hates durables because they are durable. He says people have to continuously buy tooth paste. A couple sentences later he says he thinks investing in elevators is excellent because there is a monopoly and service elevators last forever and need servicing forever. Survice elevators are extremely long lasting (like a durable good). This is guy sounds like a schmuck. Cool haircut though. I guess this video is from the 80s before he figured how to think properly in order to not contradict himself and not give horrendously formed logical conclusions for his decision making. I thought he was brilliant before i watched this video.
@jakelamotta7904
@jakelamotta7904 9 ай бұрын
looks like your mind changes from video to video
@bluegtturbo
@bluegtturbo Жыл бұрын
What he says about debt is very true. With Facebook and MS he has moved away from his stance?
@zetaconvex1987
@zetaconvex1987 Жыл бұрын
In other words: incremental return on capital. Coca Cola has it, but WD-40 doesn't. I think there were actually a few companies that tried to take market share from WD-40, but they exited the market. WD-40 operates in a small niche, and that is actually good because it means that it's not worth competition getting involved.
@davidgray3321
@davidgray3321 Жыл бұрын
I think Terry is a very good fund manager but there is a slight gap in the logic, his fund buys significantly less companies that a top 100 fund, as he just pointed out (he has 70 I think he said) the fund I invest in is an index fund of 100 of the biggest companies, mostly in the USA and some worldwide, so the risk of a company going “ wrong” will have a smaller impact on my investment. Unfortunately for Terry the fund I invest in has done significantly better over 5 years, and it is SIGNIFICANTLY cheaper, so why invest in Fundsmith? This is the problem managed funds face, a growing realisation that they generally are not good enough at clairvoyance to make their fees worthwhile paying.
@dancrooksycamore
@dancrooksycamore Жыл бұрын
He has made a sort of similar point at past annual meetings about not being a very active fund manager. I guess he'd say he'd be doing this work for his own money investment anyways, so if people trust his decisions to invest with their money too, that's their problem, not his!
@RedGoobler
@RedGoobler Жыл бұрын
He needs an FCF yield of 5%? Good thing his thinking has evolved
@Allen-L-Canada
@Allen-L-Canada 6 ай бұрын
What is his FCF yield requirement now?
@RedGoobler
@RedGoobler 6 ай бұрын
How the fuck would I know?
@GoncaloMoiteiro-uw4bb
@GoncaloMoiteiro-uw4bb 4 ай бұрын
@@Allen-L-Canada 10%
@martynfenton3814
@martynfenton3814 Жыл бұрын
Taylors rule - bring it back. Govts in West can't, they went bust in 2008 and nobody really talks about it
@moreno3461
@moreno3461 2 жыл бұрын
Nice! He practically doing the opposite! He's investing billions in technology innovation!
@boratsmagadijev940
@boratsmagadijev940 Жыл бұрын
Good point. I guess he changed. This must be very old video
@Dr.Dumpnpump
@Dr.Dumpnpump Жыл бұрын
I’m not so sure that is true. Can you name a consumer durable or tech company that he is invested in that doesn’t fit this model?
@Discovery_and_Change
@Discovery_and_Change 2 жыл бұрын
I bought CL at $78 two months ago...currently down -9%
@xXRedEyedStrangerXx
@xXRedEyedStrangerXx Жыл бұрын
See where it is in 2 decades…
@deansworld2047
@deansworld2047 Жыл бұрын
😂😂😂😂😂😂😂😂
@deansworld2047
@deansworld2047 Жыл бұрын
You should've checked if it was the right time to buy it relative to its underlying value😂
@deansworld2047
@deansworld2047 Жыл бұрын
It's probably currently expensive
@Discovery_and_Change
@Discovery_and_Change Жыл бұрын
@@deansworld2047 I sold and decided to buy XLP (Consumer Staples index) instead. They cost almost the same ($70s).
@freizeit8117
@freizeit8117 2 жыл бұрын
Don't overpay for good companies. I think CL is one of these companies. Too expensive. Growth is to weak. Too much competition. I buy my toothpaste from a drugstore. A private label that was tested with very good. Cheaper than Colgate: I think CL is worth around 40 USD only.
@Piggy991
@Piggy991 Жыл бұрын
Until they buy your private label
@lihapekka2625
@lihapekka2625 Жыл бұрын
40$ is quite cheap for a company
@deansworld2047
@deansworld2047 Жыл бұрын
Well said, Colgate is just waay too expensive
@beastmode3600
@beastmode3600 3 ай бұрын
@@freizeit8117 lol $102 right now
@CarlosMcWhorterCPA
@CarlosMcWhorterCPA 2 жыл бұрын
Love Terry Smith! Learned so much from listening to him and reading his articles.
@arnabbhattacharya6579
@arnabbhattacharya6579 2 жыл бұрын
This guy is good
@slapjuice
@slapjuice 10 ай бұрын
aged badly, he closed his emerging market fund as he couldn't figure it out
@kiesasmith2544
@kiesasmith2544 2 жыл бұрын
Tx
@mazterz
@mazterz 2 жыл бұрын
I have to disagree with Terry on this. Yes, Coca-Cola can reinvest its capital at an attractive rate and grow over time and benefit from price appreciation. BUT WD-40 pays out most of its free-cash flow to its shareholders, earning them a very attractive return on invested capital each year. As Buffett has said, there is no rule saying you have to spend your money where you earned. WD-40 shareholders can take their cash return and invest it elsewhere at a rate that may be significantly higher than what Coca-Cola can reinvest their capital, making WD-40 the more attractive investment.
@Aubatron
@Aubatron 2 жыл бұрын
Yeah but that's not really the point. There's no growth. If you're someone like Warren Buffet focusing on smaller market cap stocks, you can get 50% returns. Even if you're half as efficient as him, you can make 25% returns, much more than you'd get from WD40. When you have well established companies that are doing lots of share buy backs and paying out dividends, it usually means that company is more stable and safe than other businesses, but your returns are going to be much lower. It doesn't really matter if you take both capital gains and dividends into account, WD40 is still the loser by a long shot.
@mazterz
@mazterz 2 жыл бұрын
@@Aubatron Buffett has not achieved anywhere near 50% returns; In the 50's and 60's, his partnerships had an annualised return of just over 30%. Whether your return comes in the form of dividends and price appreciation through buybacks, as opposed to growth-induced price appreciation, makes no difference. And this is not difficult to understand. Over the long term, you will earn a return that coincides with the ROIC of the underlying business. Growth, in and of itself, does not create value. The return has to exceed the cost of capital (which is a function of opportunity cost).
@Aubatron
@Aubatron 2 жыл бұрын
@@mazterz do some research, I’m talking about when he first started. He is able to make 50% returns with capital under 10 million. You’re comparing compounding interest on dividends to compounding interest on exponential growth of a business. 68% of all businesses that increase in market cap 100x or more, do the majority of that growth under 300m market cap. You can make any argument you want, your opinion doesn’t stand up to the numbers. You don’t get that type of return reinvesting dividends. All of this stuff you’re suggesting is only accurate if we’re talking about the biggest businesses in the market. The ones Warren Buffet and Charlie Munger are forced to invest into because they’re working with a little bit more than 10 million…
@mazterz
@mazterz 2 жыл бұрын
@@Aubatron Read my first comment again because clearly you don't understand. Dividends can be reinvested to compound. If a company pays me a 15% dividend and I can reinvest that somewhere else at 15%, ill make the same return as someone holding a stock with a CAGR of 15%. Really straightforward.
@Aubatron
@Aubatron 2 жыл бұрын
Yes you would make the same for 15% dividends as capital gains, but link me a diverse array of healthy businesses with 15% dividends. You can't, because there are not many. Let alone comparing 15% to a potential average growth much higher, like many value investors get. Businesses are valued based on future projected earnings, so a trend of growth gives you way more potential for future capital gains than a business with high dividends does. And I already mentioned reinvesting dividends and it compounding in my last comment, so not sure what you're even talking about? I'm not even going to get into capital gains usually getting taxed lower than dividends either, that doesn't need to be part of my argument.
@hl3641
@hl3641 2 жыл бұрын
inception till now his fund produce ab -7% after fees total return less than benchmark…. Remember 1% -1.5% fee for twelve years is 15% with compound effect!!!!!! Thief and looooser compare to vanguard passive index …lol..
@hl3641
@hl3641 2 жыл бұрын
Another scammer .Lol… for inception till now his fund produce ab -7% after fees total return less than benchmark…. Remember 1% -1.5% fee for twelve years is 15% with compound effect!!!!!! Thief and looooser compare to vanguard passive index …lol..
@mumbaiindia3034
@mumbaiindia3034 Жыл бұрын
@@DanLyndon nice comment
@NoRegertsHere
@NoRegertsHere 11 ай бұрын
After fees, he’s outperformed by a fair amount
@hl3641
@hl3641 2 жыл бұрын
Lol… for inception tell now his fund produce ab -7% after fees total return less than benchmark…. Lol
@MrSabinR
@MrSabinR 2 жыл бұрын
He speaks all things Warren Buffett but assumes the credit. This is wrong
@BSSE
@BSSE 2 жыл бұрын
Can you upload full video if not
@williamnee2331
@williamnee2331 2 жыл бұрын
So does it do as well as Berkshire Hathaway cause they invest in all those sectors that this guy doesn't't?
@thegrumpydeveloper
@thegrumpydeveloper 2 жыл бұрын
We own good companies. Mic drop. (Peaces out)
@afrin2528
@afrin2528 2 жыл бұрын
NICE VIDEO..... I HAVE BEEN TRADING FOR MONTHS NOW. I KEEP MAKING MORE LOSS TRADE WRONG COINS PLEASE I NEED SOME KIND OF ASSIST OR ADVICE ON WHAT TO DO
@geraldmark7523
@geraldmark7523 2 жыл бұрын
Nice video:Cryptocurrency also changed my life, with an experience broker crypto trading would just be easy and highly profitable.
@charlotteolie937
@charlotteolie937 2 жыл бұрын
Sometimes I wonder if she's used magic power trade
@charlotteolie937
@charlotteolie937 2 жыл бұрын
I've never heard or seen any of her clients complain of Lost....I think she's just too perfect
@lazarusmaigida1896
@lazarusmaigida1896 2 жыл бұрын
A friend that I referred to her just received $7,050 profit after 10 days of investing....I became jealous.. lol
@sandracletus2265
@sandracletus2265 2 жыл бұрын
She's really the best, I've made a lot
@sz1771
@sz1771 2 жыл бұрын
And now there is Smithson , Emerging market
@drdrjr13
@drdrjr13 2 жыл бұрын
1 % is kind of a lot
@paultweedley2026
@paultweedley2026 2 жыл бұрын
Some people have gotten very rich from ciclicals and thing's like mining companies because they only buy when there depressed and sell when exuberant, I'm surprised he's not interested in that because he is a rather clever chap 😏
@Doncarlosmcwhorter
@Doncarlosmcwhorter 2 жыл бұрын
Love hearing perspective from Terry Smith
@nq1104
@nq1104 2 жыл бұрын
In some ways I love how simple this is, but I am surprised there’s no mention of a required FCF growth rate over as well as the current FCF yield. I.e wants FCF to grow at a rate of >x%, or to see a runway for revenue growth. I suppose he alludes to ROCE, and therefore if the FCF yield is greater than long term bonds, and his view of the company is that they will grow FCF through their high ROCE, that by definition is going to lead to FCF growth that would maintain a good FCF yield. Very interesting.
@nancysometimes7021
@nancysometimes7021 2 жыл бұрын
Interesting observation, but ROCE does not of itself translate to growth because normally the ROCE of a business doesn't move very much.
@nancysometimes7021
@nancysometimes7021 2 жыл бұрын
So still puzzled which benchmark he bases growth on ...
@frankle246
@frankle246 2 жыл бұрын
growth rate of fcf >= 5% is good.
@TheBuckonator
@TheBuckonator Жыл бұрын
I would expect its because his crystal ball for predicting fcf growth rates is broken
@JonBaldie
@JonBaldie Жыл бұрын
@@nancysometimes7021 you’ve not quite got it right. ROCE is a ratio, so even if ROCE stays the same, if the total amount of capital employed (the bottom part of the ratio) increases, that shows the business is growing while retaining the same level of profitability, which is a great sign.
@akshayshetty5548
@akshayshetty5548 2 жыл бұрын
Thanks
@agnivdey
@agnivdey 2 жыл бұрын
Great thinking
@hugomeza2910
@hugomeza2910 2 жыл бұрын
I wish Warren Buffett was this specific about how he values a business
@guharup
@guharup 2 жыл бұрын
Calculating fcf and projecting it into the future isn’t easy
@Yotaciv
@Yotaciv 2 жыл бұрын
@@guharup or accurate
@roym1444
@roym1444 Жыл бұрын
This isn't really valuing it's pricing stocks relative to others big difference
@paulraschella2223
@paulraschella2223 2 жыл бұрын
What a great SIMPLE “ BACK TO BASICS” vid. Listen and learn kiddies !!!!!!
@Felicidade101
@Felicidade101 2 жыл бұрын
interesting but a couple of great stocks do not have the FCF Yield he looks for.
@valerio727
@valerio727 2 жыл бұрын
yeah, amazon for example. but he still bought it
@jonathanrhodes8525
@jonathanrhodes8525 2 жыл бұрын
@@valerio727 If you watch the recent Fundsmith shareholders meeting video, he talks about Amazon and the reasons for buying it
@valerio727
@valerio727 2 жыл бұрын
@@jonathanrhodes8525 thanks, I'll check it out!
@ambalavanant
@ambalavanant 2 жыл бұрын
I like the insights that Terry gives. Also I like Saurabh Mukherjea of Marcellus who's penchant for FCF growth is widely known and how he picks the winners in the same way
@maninarucksack8983
@maninarucksack8983 2 жыл бұрын
CONTENT THEFT! Great idea, take someone else’s popular videos and republish them as a way of earning money from those who watch them!
@ajithdileep
@ajithdileep 2 жыл бұрын
They don't invest in airlines, banking, minerals, oil and insurance.
@kidze73
@kidze73 2 жыл бұрын
which year is this?
@holtencosales
@holtencosales 2 жыл бұрын
it looks like 2013 from the slides in the background
@Concojone5
@Concojone5 2 жыл бұрын
Good question
@sil3ntmode
@sil3ntmode 2 жыл бұрын
Exxon no brand value?
@Spencer-vm9kt
@Spencer-vm9kt 2 жыл бұрын
yeah they don't, do you care which gas station you get fuel from?
@HepCatJack
@HepCatJack 2 жыл бұрын
As in Exxon Valdez oil spill ?
@AbcDino843
@AbcDino843 Жыл бұрын
None whatsoever. People chose gas stations on convenience and maybe price. Nobody cares which logo is on it.
@thebeardeddoctor227
@thebeardeddoctor227 2 жыл бұрын
My wife and I recently watched that video of the people passing the ball and completely missed the gorilla. Perfect example of missing the Forrest for the trees. It’s one of the reasons I stopped watching my portfolio performance everyday and I definitely had to stop watching the stock market news. Market makers make money on capturing the bid/ask spread so they need activity in the market to keep their pockets fat. Less activity is certainly more!