October 1, 2021
Investing for Growth: How to make money by only buying the best companies in the world
Terry Smith
U.K. fund manager Terry Smith has a common-sense, three-step approach to investing: 1) buy good companies, 2) don’t overpay, and 3) do nothing. It appears the approach has worked – as of 9/30/2021, the Fundsmith Equity Fund had returned +18.4% versus +12.5% for its MSCI World Index benchmark since its inception in November 2010. Smith articulates his view, through a collection of fund letters and Financial Times articles, that investing in quality companies is a more advanced version of value investing. Advantaged businesses with reinvestment opportunities should avoid dividends and only repurchase shares when they trade at a discount. The book makes his approach seem simple, though we know, through experience, that nothing in investing is easy.