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Fundsmith Letters & Research Archive

Fundsmith is the fund firm Terry Smith ("Britain's Warren Buffett") founded in 2010, with a discipline of radical simplicity — Buy Good Companies, Don't Overpay, Do Nothing: a concentrated book of 20-30 high-ROCE global consumer, healthcare and tech franchises with near-zero turnover. His annual shareholder letters are famous for wit and common sense; peak AUM topped £25bn.

34 pieces · 2011–2025 · updated every Monday

2025

12-31Fundsmith Annual Letter to Shareholders 2025This is a letter from top fund manager Terry Smith to his investors. His fund returned only 0.8% in 2025, far behind the stock market's 12.8%. But he says long-term results (13.8% annualized since 201…→12-31Fundsmith Equity Fund Annual Report 2025Terry Smith's Fundsmith fund returned just 0.8% in 2025, far behind the market's 12.8%. Why? The market was dominated by a few tech giants like Nvidia and Tesla, which Smith refuses to buy because the…→06-30Fundsmith Semi-Annual Letter to Shareholders 2025This is a letter from star fund manager Terry Smith to his investors. His fund lost 1.9% in the first half of 2025, mainly because two big holdings—drugmaker Novo Nordisk and medical supplies company…→06-30Fundsmith Equity Fund Interim Report 2025This report covers Fundsmith, a well-known fund run by Terry Smith, for the first half of 2025. It lost 1.9% in pounds, but that's mostly because the pound rose 9% against the dollar—in dollars it act…→

2024

12-31Fundsmith Annual Letter to Shareholders 2024This is a fund manager's annual letter to investors. In 2024, their fund returned 8.9%, lagging the market's 20.8% because most gains came from a few tech stocks like Nvidia. The fund didn't chase tho…→12-31Fundsmith Equity Fund Annual Report 2024This report covers Terry Smith's Fundsmith Equity Fund for 2024. It returned 8.9%, lagging the MSCI World's 20.8%, because it didn't own enough AI stocks like Nvidia. But its long-term track record is…→06-30Fundsmith Semi-Annual Letter to Shareholders 2024This is a letter from star fund manager Terry Smith to his shareholders. His fund returned 9.3% in the first half of 2024, lagging behind the global stock market index (up 12.7%). The reason? Market g…→06-30Fundsmith Equity Fund Interim Report 2024This is a report from star fund manager Terry Smith's Fundsmith fund for the first half of 2024. The fund returned 9.3%, but lagged the global stock market because it didn't own Nvidia (a chip maker t…→

2023

12-31Fundsmith Equity Fund Annual Report 2023This report covers Fundsmith Equity Fund's 2023 performance. It earned 12.4% but lagged the global stock market (16.8%) because it didn't own the "Magnificent Seven" tech stocks (Apple, Microsoft, etc…→06-30Fundsmith Equity Fund Interim Report 2023This report breaks down the Fundsmith Equity Fund's first-half 2023 results. The fund returned 8.5%, slightly behind the global stock market. The manager sold Amazon and Adobe, worried about wasteful…→

2022

12-31Fundsmith Equity Fund Annual Report 2022This report covers Terry Smith's Fundsmith Equity Fund, which lost 13.6% in 2022, worse than the global stock market (down 7.8%). The main culprit: rising interest rates hit high-priced tech stocks li…→06-30Fundsmith Equity Fund Interim Report 2022The Fundsmith Equity Fund lost about 18% in the first half of 2022, worse than the global stock market. The main reason: its high-growth holdings like PayPal and Meta were hit hard by rising inflation…→

2021

12-31Fundsmith Equity Fund Annual Report 2021This report covers Fundsmith's 2021 performance. The fund returned 22.1%, slightly behind the market's 22.9%, but since 2010 it's up 570%, far above average. The manager owns only a few high-quality c…→06-30Fundsmith Equity Fund Interim Report 2021This report covers Fundsmith's first half of 2021. The fund returned 13.1%, beating the MSCI World Index by about 1%. It holds high-quality companies like PayPal, Microsoft, and Facebook, and trades v…→

2020

12-31Fundsmith Equity Fund Annual Report 2020This report covers Fundsmith Equity Fund's 2020 performance, up 18.3% vs 12.3% for global stocks. Manager Terry Smith sticks to high-quality companies with strong returns on capital (ROCE 25%, vs S&P…→06-30Fundsmith Equity Fund Interim Report 2020This report covers how Fundsmith Equity Fund performed in the first half of 2020. It beat the global stock market by 6% thanks to big bets on PayPal and Microsoft. The manager also bought Nike and Sta…→

2019

12-31Fundsmith Equity Fund Annual Report 2019This article breaks down the Fundsmith Equity Fund's 2019 annual report. The fund earned 25.6%, beating the market. The manager sold 3M and Colgate because he lost faith in their management, and bough…→06-30Fundsmith Equity Fund Interim Report 2019This breaks down Fundsmith's 2019 mid-year report. The fund returned 24%, beating the global stock average of 17%. It holds quality companies like Microsoft and PayPal, and sold Colgate-Palmolive due…→

2018

12-31Fundsmith Equity Fund Annual Report 2018Fundsmith Equity Fund's 2018 annual letter reports a 2.2% gain, while global stocks fell 3%. Manager Terry Smith sticks to high-quality businesses with strong cash flows and low debt, like Facebook (w…→06-30Fundsmith Equity Fund Interim Report 2018This report summarizes the first half of 2018 for Fundsmith Equity Fund, run by Terry Smith. The fund returned 7%, beating the global stock market's 2.9%. He sold Nestlé (because it bought Starbucks's…→

2017

12-31Fundsmith Equity Fund Annual Report 2017This fund returned 22% in 2017, beating the 11.8% average of global stock markets. It invests only in high-quality companies with strong returns on capital (28% vs 15% market average) and low debt (37…→06-30Fundsmith Equity Fund Interim Report 2017This is a 2017 mid-year report for a fund that returned 13.4% in six months, far outpacing global stocks (5.3%) and UK stocks (4.7%). The manager barely traded, adding only one new US software stock a…→

2016

12-31Fundsmith Equity Fund Annual Report 2016This summary covers Fundsmith Equity Fund's 2016 annual report. The fund gained 28.2%, matching the global index but beating the UK FTSE 100 by 9%. It owns companies with very high returns on capital…→06-30Fundsmith Equity Fund Interim Report 2016This is Fundsmith’s report for the first half of 2016. The fund returned 16.4%, beating the global stock market (MSCI World) at 11% and the UK market (FTSE 100) at 6.7%. The manager bought Estée Laude…→

2015

12-31Fundsmith Equity Fund Annual Report 2015This report covers Fundsmith Equity Fund's 2015 performance: a 15.7% return, far above the market's 4.9%. Manager Terry Smith only buys high-quality companies with strong returns on capital (26% ROCE)…→06-30Fundsmith Equity Fund Interim Report 2015This report from Fundsmith Equity Fund shows that while the fund slightly underperformed the market in the first half of 2015, it has more than doubled since its 2010 launch (16.3% annualized vs 10.5%…→

2014

12-31Fundsmith Equity Fund Annual Report 2014This 2014 annual report shows the Fundsmith fund returned 23.3%, beating the global stock market's 11.5%. The manager buys high-quality companies (like Microsoft, Unilever) with strong profits and low…→06-30Fundsmith Equity Fund Interim Report 2014This report covers Fundsmith Equity Fund’s first half of 2014. The fund returned 4.1%, beating the market’s 2.9%. The manager made only one trade: sold Swedish Match (worried about e-cigarettes) and b…→

2013

12-31Fundsmith Equity Fund Annual Report 2013This report covers Fundsmith's 2013 results and moves. Manager Terry Smith sticks to buying solid companies (like Microsoft and Domino's Pizza) that earn good profits for years, and he trades very rar…→06-30Fundsmith Equity Fund Interim Report 2013This report covers how the Fundsmith fund performed in the first half of 2013. It returned 21.5%, beating the market by a lot. The fund only buys high-quality companies with strong competitive advanta…→

2012

12-31Fundsmith Equity Fund Annual Report 2012This is the 2012 annual report for the Fundsmith Equity Fund. Manager Terry Smith uses a simple strategy: buy high-quality companies and hold them for years. In 2012, the fund returned 12.5% (beating…→06-30Fundsmith Equity Fund Interim Report 2012This is Fundsmith's 2012 mid-year report. The fund buys good companies (like Unilever and Microsoft) and earned 7.5% in the first half, beating the stock market average of 5.1%. Remarkably, the manage…→

2011

12-31Fundsmith Equity Fund Annual Report 2011This report covers Fundsmith's first full year (2011), where the fund returned 15% while global stocks barely rose 3%. Manager Terry Smith focuses on buying durable, profitable companies like Nestlé,…→06-30Fundsmith Equity Fund Interim Report 2011This report covers Fundsmith's performance in the first half of 2011. The fund returned 11.9%, slightly beating the global stock market average of 10.7%. But the manager says 8 months is too short to…→