Discovered the following website. It tracks "superinvestors" - biggest and most famous fund managers in the world's portfolio data. With all their current activity (buys / sells / weightings etc.). Its all overseas stocks, but thought would be interesting to anyone who actively invests overseas.
https://www.dataroma.com/m/home.php
Would love to here about some members favorite fund manager strategies. I find it good to learn about different strategies of the experts to see if i can apply anything to my own strategy.
Ive been doing some reading on Terry Smith the famous UK fund manager and his Fundsmith equity portfolio. Fundsmith has a simple strategy. They dont do anything complicated and dont shy away from that fact. Something about the simplicity of this really resonates with me and i thought id share for those interested.
Terry holds a concentrated portfolio. They are clear on the thinking behind this saying “Fundsmith knows: Just a small number of high quality, resilient, global growth companies that are good value and which we intend to hold for a long time, and in which we invest our own money.”
Fund strategy is based on the acronym ODD:
– Only invest in good companies.
Terry's definition of a good company relies on a few factors:-
– Don’t overpay.
Quality is most important to Terry. However you can overpay. However you can still overpay and valuation matters.
– Do nothing.
Low trading activity limits cost and eliminates the impossible task of trying to time the market. Doing nothing also maximises the compounding effect. I heard the strawman talk about this on a podcast recently how doing nothing is one of the hardest things to do. People equate activity to adding value (this is definitely something i struggle to do and am trying to limit my activity moving forward).
Reading through the monthly factsheets and annual letters Terry has really stuck to the “Do nothing” strategy. During the life of the fund he averages 2 sold stocks per year with an average. Interestingly only 3 stocks i could see were sold due to high valuation. The fund is reluctant to sell off its "winners".
Most stocks sold were due to weakening business models, structural issues, or similar. Most of the stocks sold were the most declining stocks in the previous year, meaning the fund mostly sells off its "losers".
This strategy has realised an 18.6% compound return since inception. Its is really just another version of the Buffett / Munger style of buying quality companies at fair valuations and holding for the longterm.
https://www.fundsmith.co.uk/factsheet/