Nice content! The best way to find that balance between saving and living is by investing, this way you get to have your savings intact and then live comfortably of the revenue coming in from your investments.
Working with Romero pieto is the best thing that can happen to a beginner trader who is aspiring to be fruitful out of the market he is trustworthy and straightforward we surely need more men like him in trading world.
I’ve rewatched a lot of Terry’s interviews and presentations and each time I’ve learned something new that I didn’t understand the significance of at the time. He says so much in such little time
Same but, without sounding arrogant, what exactly was the big revelation here? A good reminder for new traders or WSB crowd but for 'investors', isn't this a 101 message?
excellent video. i am certainly no where near the experience level of Mr. Smith, but my impression of and understanding of the definition of value investing, as I've gleaned since being introduced to the concept, is not different from or exclusive of the choosing of quality stocks. that is to say, if it is a strong business that will compound for many years many year to come, is not it not most certainly is a "value stock", from just about any valuation perspective? maybe am i missing something? no doubt i have much more to learn, and always will! thank you Morningstar for all your educational resources.
One of the key things about his investment philosophy is that it is very simple but people always tend to associate complex theories and concepts with investing and end up with losses. It is a no brainer to buy a simple business like Colgate but how many of us actually do that?
I agree completely. Value investing is not exclusive of buying businesses of great quality, in fact that`s what Warren Buffet does. In my opinion value investing is about giving more importance to the present rather than the future and buying with a margin of safety
I think Terry Smith is a very competent investor. I do however believe he is using the terms value investing and value investors wrong. By definition, value investing is paying less for something than it is worth. It is the opposite of overpaying. He invests in growth companies, but makes sure to pay a reasonable price. That is also value investing.
But he’s saying he’s looking for good long-term returns, not just finding companies which are ‘undervalued’ (which a fund manager would dispose of once it’s reached ‘value’)
Terry i am invested with you. What i dont like is the fact that my fund does not generate a Dividend. Thus every month a portion of my shares are sold to pay off the one % manager fees. Any way that you can change this. Dave.
Everything he says makes sense and he's clearly intelligent but when investment charges are taken into account you'd be better off with a low cost index tracker.
By and large they avoids technology firms as it is quite difficult to plan with them over the long term. What is a fab today maybe gone tomorrow. For every apple there is an Atari. How do you pick the apple from the tree Paypal and Microsoft and Facebook are really service companies in that they function at the software side and their products have a more stable basis but still have risk attached to them. Buying companies that are stable of 50 year periods that produce a key product that people buy as a staple is the way to go. I have technology securities myself but focus my effort into growth level value.
I think the distinction is that these co's are essentially using "installed bases of software and payment systems", as opposed to technological products. He admits that technological products are really difficult to assess and cites the example of the Sony Walkman being overtaken by MP3 players, which he did not foresee.
@@matthewjefferys2141 I closely study computation science and engineering and have a strong academic research background in chemistry and mathematic and yet cannot understand exactly what is going to come out on top. CD's are superior in quality mp3 but the masses prefer mp3 because of convenience but is streaming going to overtake downloads. I just do not have the answers to any of this but can estimate with a degree of certainty but not enough for investing.
Can you expand on what you mean - why do you think they'll underperform in the 2020s - has this "reversion to the mean" affected other Funds in a similar way?
+Tim Collins Fundsmith selects cash rich businesses, good cash flow, low debt, they sell products like crazy and are the actual companies that drive the indexes forward. I know it may appear complex but it is actually really simple stuff.
I'm not sure what Tim Collins' agenda is but.... Markets revert to mean but funds don't necessarily if the fund manager has a good and rigorous stock selection method (his claim sounds knowledgeable but misunderstands the principles). Eg Warren Buffett - outperforming the market for decades (the only reason BH have been lacklustre the last decade or so it that their managers are now very old and their investing style long in the tooth - not 'reversion'). Having said the above: I do think FS runs the risk of at least less stellar performance going because of his focus on the US markets which are universally acknowledged as overpriced....
Five minutes talking about value investing as if it wasn't value investing, by opposing the arguments of value investing to value investing. Quite funny and amusing tbh.
@@fisherh9111 Calm down, Buffett is THE benchmark when talking about investing. It's easy to say "he had more years to compound", but just as he had more years, he had many more chances to mess it up. He didn't. And Terry does look up to Buffet and Munger, just have a look at Fundsmiths annual letters and see how often they are mentioned...
Buffet went from being an extremely talented investor to being a CEO of one of the worlds largest companies. Smith is amazing but you cannot compare the two.
Are you crazy! Look at Buffet's track record! But of course Buffett can't generate the same returns now because he has too much cash to deploy. It is much easier for Smith because he is dealing with much smaller sums.
Quality factors (roe, peg, cash flow, consistent earnings/dividends etc, perceived sustainability) are the least correlated with long term returns, and tend to do best and then worst in a bubble. Hes talking about defensive in vague and theoretical terms. He's a market timer. Buy an index fund.
He is not a market timer. He buys on quality companies over the long term such as Johnson and Johnson as an example. They are a long term position with good quality levels of growth.
@@tc9634 Growth a myth? Tell that to the most successful investors in the world. I my self have grown at about 27% for the last few decades. Without growth their simply would not be a marketplace. Are you saying there are no companies out there than have grown in value?
No he is a business selector. I agree most active management is a waste of time, but there are a very small number of original thinkers. Terry is one, so is Keith Ashworth-Lord. Both have done very well for me over many years.
Nice content! The best way to find that balance between saving and living is by investing, this way you get to have your savings intact and then live comfortably of the revenue coming in from your investments.
His trade execution quality and profiting is well structured with great financial features.
Working with Romero pieto is the best thing that can happen to a beginner trader who is aspiring to be fruitful out of the market he is trustworthy and straightforward we surely need more men like him in trading world.
Good good content .
Yes I'm a living testimony of Romero pieto his platform has also done a great thing for me.
I've seen so many review about this man called Romero pieto who is he ?
Quality investing is a form of value investing but it does not have an over fixation on the price (value) but it does not completely ignore price.
This interview is pure gold, thank you for your time and dedication!
I’ve rewatched a lot of Terry’s interviews and presentations and each time I’ve learned something new that I didn’t understand the significance of at the time.
He says so much in such little time
The Magic trick is to find value and quality all in one. It is hard to do but not impossible and when you get it right he pay off is massive.
So succinct! A complete course in how to invest in 5 minutes.
Puru Saxena brought me here
Same but, without sounding arrogant, what exactly was the big revelation here? A good reminder for new traders or WSB crowd but for 'investors', isn't this a 101 message?
excellent video. i am certainly no where near the experience level of Mr. Smith, but my impression of and understanding of the definition of value investing, as I've gleaned since being introduced to the concept, is not different from or exclusive of the choosing of quality stocks. that is to say, if it is a strong business that will compound for many years many year to come, is not it not most certainly is a "value stock", from just about any valuation perspective? maybe am i missing something? no doubt i have much more to learn, and always will! thank you Morningstar for all your educational resources.
You're welcome again +techsan08. Thank you for watching and we are really pleased you like our video content!
One of the key things about his investment philosophy is that it is very simple but people always tend to associate complex theories and concepts with investing and end up with losses. It is a no brainer to buy a simple business like Colgate but how many of us actually do that?
I agree completely. Value investing is not exclusive of buying businesses of great quality, in fact that`s what Warren Buffet does. In my opinion value investing is about giving more importance to the present rather than the future and buying with a margin of safety
Another EPIC W for Terry smith.
very articulate gentleman
He’s brilliant.
I think Terry Smith is a very competent investor. I do however believe he is using the terms value investing and value investors wrong. By definition, value investing is paying less for something than it is worth. It is the opposite of overpaying. He invests in growth companies, but makes sure to pay a reasonable price. That is also value investing.
But he’s saying he’s looking for good long-term returns, not just finding companies which are ‘undervalued’ (which a fund manager would dispose of once it’s reached ‘value’)
Terry i am invested with you. What i dont like is the fact that my fund does not generate a Dividend. Thus every month a portion of my shares are sold to pay off the one % manager fees. Any way that you can change this.
Dave.
Everything he says makes sense and he's clearly intelligent but when investment charges are taken into account you'd be better off with a low cost index tracker.
Nope.
He avoids new technology but his Aegon Fundsmith Equity fund includes Paypal, Microsoft and Facebook.
By and large they avoids technology firms as it is quite difficult to plan with them over the long term. What is a fab today maybe gone tomorrow. For every apple there is an Atari. How do you pick the apple from the tree
Paypal and Microsoft and Facebook are really service companies in that they function at the software side and their products have a more stable basis but still have risk attached to them.
Buying companies that are stable of 50 year periods that produce a key product that people buy as a staple is the way to go.
I have technology securities myself but focus my effort into growth level value.
I think the distinction is that these co's are essentially using "installed bases of software and payment systems", as opposed to technological products. He admits that technological products are really difficult to assess and cites the example of the Sony Walkman being overtaken by MP3 players, which he did not foresee.
@@matthewjefferys2141
I closely study computation science and engineering and have a strong academic research background in chemistry and mathematic and yet cannot understand exactly what is going to come out on top.
CD's are superior in quality mp3 but the masses prefer mp3 because of convenience but is streaming going to overtake downloads. I just do not have the answers to any of this but can estimate with a degree of certainty but not enough for investing.
Wonderful
Misleading title. The guy is actually a value investor.
Saurabh Mukherjea of UK
Saurabh is India's Terry Smith. Terry Smith is Saurabh's MENTOR. Saurabh is invested in Mr.Smith's fund.
Price is what you pay, value is what you get, and thanks to reversion to the mean Fundsmith will underperform the index in the 2020s
Can you expand on what you mean - why do you think they'll underperform in the 2020s - has this "reversion to the mean" affected other Funds in a similar way?
+Tim Collins
Fundsmith selects cash rich businesses, good cash flow, low debt, they sell products like crazy and are the actual companies that drive the indexes forward.
I know it may appear complex but it is actually really simple stuff.
I'm not sure what Tim Collins' agenda is but.... Markets revert to mean but funds don't necessarily if the fund manager has a good and rigorous stock selection method (his claim sounds knowledgeable but misunderstands the principles). Eg Warren Buffett - outperforming the market for decades (the only reason BH have been lacklustre the last decade or so it that their managers are now very old and their investing style long in the tooth - not 'reversion').
Having said the above: I do think FS runs the risk of at least less stellar performance going because of his focus on the US markets which are universally acknowledged as overpriced....
Lol, guess he didn't! He killed it.
Can a fifty billion dollar company become a trillion dollar company?
@@williambrown1455 👍
Giz a list then lol
Five minutes talking about value investing as if it wasn't value investing, by opposing the arguments of value investing to value investing. Quite funny and amusing tbh.
Copy of Saurabh Mukherjea :)
Saurabh Mukherjea is copy of Mr.Smith, Mr. Smith is Saurabh's mentor.
@@allenrockstar2933 It was a sarcastic comment 😉
So much smarter than Buffett, it's not even funny.
Agree. Buffett started at a younger age though so he’s had more years to compound his returns. Terry has only been investing for a decade or so.
I have th deepest respect for Terry and like him very much, however compared to Warren and Charlie he is a minow
@@fisherh9111 Calm down, Buffett is THE benchmark when talking about investing. It's easy to say "he had more years to compound", but just as he had more years, he had many more chances to mess it up. He didn't. And Terry does look up to Buffet and Munger, just have a look at Fundsmiths annual letters and see how often they are mentioned...
Buffet went from being an extremely talented investor to being a CEO of one of the worlds largest companies.
Smith is amazing but you cannot compare the two.
Are you crazy! Look at Buffet's track record! But of course Buffett can't generate the same returns now because he has too much cash to deploy. It is much easier for Smith because he is dealing with much smaller sums.
Quality factors (roe, peg, cash flow, consistent earnings/dividends etc, perceived sustainability)
are the least correlated with long term returns, and tend to do best and then worst in a bubble. Hes talking about defensive in vague and theoretical terms. He's a market timer. Buy an index fund.
He is not a market timer.
He buys on quality companies over the long term such as Johnson and Johnson as an example. They are a long term position with good quality levels of growth.
@@bighands69 growth is a myth, the only "real" return is dividends
@@tc9634
Growth a myth?
Tell that to the most successful investors in the world. I my self have grown at about 27% for the last few decades. Without growth their simply would not be a marketplace.
Are you saying there are no companies out there than have grown in value?
Pls go away
No he is a business selector. I agree most active management is a waste of time, but there are a very small number of original thinkers. Terry is one, so is Keith Ashworth-Lord. Both have done very well for me over many years.