Terry Smith is the fund manager the professionals love tohate. A billionaire, he is in the third and most successful phase of a varied career. He trounced the index for years with a simple mantra of buy good companies, don’t overpay, do nothing. He thus built one of the largest funds inthe UK, made himself a fortune and moved to Mauritius. None of this made him popular with his peers and after 5 years of underperforming the S&P500 (his global fund has been mainly invested in the US) and underperforming the world index in 2025, there is quite a bit of schadenfreude around.

Smith used to box for fun and you wouldn’t want to be on thewrong side of him, but in this interview, he reveals a side less often seen. He confesses to being unable to sleep at night, worrying about stocks and expresses an extreme desire to do the best for his clients. Smith has been incredibly successful as an analyst, as a public company CEO and now as a fundmanager. He attributes it to hard work and a strong desire to succeed, driven by his background – Smith comes from a poor family and grew up in a house with an outside toilet. He is frustrated with his recent performance but is resolutethat he has the right approach and will prevail eventually.

Behind the Balance Sheet is a forensic accounting and fundamental investing podcast for serious investors. Each episode dives into how real‑world investors source ideas, build conviction and manage their portfolios.

You’ll hear frameworks for analysing industries, understanding business models, and thinking about risk, behaviour and incentives, so you can refine your own process rather than copy stock tips.For show notes, transcripts and additional resources, visit our ⁠⁠website⁠⁠.

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