His investment strategy

His investment strategy

Terry Smith’s investment strategy could be described as Monopoly for grown-ups—with global brands instead of real estate. It’s a refreshingly simple philosophy in a market addicted to noise: invest in great businesses that are easy to understand and consistently excellent in execution.

So how does he do it? Here are some golden rules from the financial guru himself—useful even if you’re still playing with Monopoly money:

• Think Long Term: Forget quick wins. Wealth is built by holding companies with high returns on capital for the long haul. Time quiets the noise and turns small seeds into towering trees.

• Focus on Quality: Look for companies with strong brands, low debt, and predictable cash flows. Like medieval fortresses, they’re built to withstand market storms.

• Stay in Your Circle: Smith only invests in what he understands. It’s his lifeboat—and it floats. He’s not chasing every trend; he’s doubling down on what he knows best.

• Minimize Costs: Unnecessary fees are like holes in your jeans that swallow your spare change. For Smith, reducing cost drag is non-negotiable for long-term outperformance.

Applying these principles, Fundsmith has invested in giants like Microsoft, Estée Lauder, and Philips. Of course, Smith admits to mistakes—he’s no robot. But his winners tend to dwarf the rare missteps, like a lion whose few failed hunts don’t threaten the pride.

He often reminds investors: success comes not from brilliance, but from avoiding dumb decisions. “Don’t be stupid” might not sound fancy, but it’s miles ahead of most advice that costs thousands in private consultations.

Ever jumped into a pool with your eyes closed? Not in Smith’s playbook. His investment approach is more like a precision dive—measured, calculated, and repeatable. A blueprint for navigating markets with more compass, less beginner’s luck.

Why he’s well known

Why he’s well known

If you’ve ever asked yourself who Terry Smith is and what he’s done to earn a spot in the investment hall of fame—buckle up. He’s no ordinary market player. This British economist is the mastermind behind one of the most successful fund management firms of the last few decades: Fundsmith. Since bursting onto the finance scene, Smith has shaken up norms, thrilled investors, and ruffled the feathers of those who’d rather keep things predictable (boring!).

Let’s get right to it—why does he matter? Smith made his mark in the early 1980s, working with established banks like Barclays and Collins Stewart. Even back then, his thinking was anything but conventional. While most obsessed over mergers and acquisitions, he was writing groundbreaking books about the power of transparency and warning investors not to fall for Wall Street’s sleight-of-hand tricks.

What really catapulted his fame was the 2010 launch of Fundsmith. The concept was simple: forget timing the market (like that friend who’s always telling you when to sell everything), and instead, buy high-quality companies with durable advantages. In plain terms: buy great businesses and hold onto them while the world burns around you.

And Smith isn’t just talk. He’s delivered the unthinkable. Since inception, Fundsmith has achieved an average annual return of 15.6%. And no—he didn’t sell his soul to the Wolf of Wall Street to get there.

He's also known for being refreshingly blunt. Smith regularly roasts other fund managers—especially those who charge outrageous fees and consistently underperform. He’s equal parts straight shooter and finance reformer. Ouch, but needed.

His conference talks and interviews? Must-watch content. He blends academic rigor with cheeky charisma—like the uncle who drops wisdom bombs at Christmas dinner. No wonder he commands a loyal following of investors hanging on his every move like squirrels waiting for golden acorns to drop.

So, who is Terry Smith? In one sentence: a modern alchemist of finance who’s turned investing into an exact science. He’s not just someone to watch—he’s someone to study. Because the first step to investing like a pro is spotting the genius others overlook.