We Study Billionaires - The Investor’s Podcast Network

RWH054: Billionaire Brit w/ Terry Smith

323 snips
Feb 9, 2025
Guest
Terry Smith
Terry Smith, a British investing titan and manager of the Fundsmith Equity Fund, shares his remarkable journey from poverty to becoming a billionaire. He discusses his knack for spotting great businesses, revealing why many of his favorites are over a century old. Smith candidly critiques sectors like tech, expressing skepticism about Tesla while praising Microsoft's business model. He explains the importance of understanding economic realities in investing and shares lessons learned from Sir John Templeton, all while emphasizing resilience in the face of professional challenges.
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ADVICE

Valuation

  • Be willing to pay a premium for high-quality growth companies due to their compounding returns.
  • Markets generally price good companies higher than bad ones.
ANECDOTE

Capitalizing on Mispricing

  • Smith bought Microsoft at $25, and it's now over $400.
  • He capitalized on market mispricing during periods of negative sentiment.
ANECDOTE

US vs UK Economy

  • The US offers a dynamic environment for innovation and capital flow.
  • The UK, however, exhibits an anti-entrepreneurial spirit, hindering its growth.
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