Is Active Management Worth Paying For? With Terry Smith (CEO, CIO & Founder of Fundsmith)

Episode 125,   Jan 25, 06:00 AM

Our guest today has been referred to as "the English Warren Buffett" for his style and success in investing. His book, published in 1992, Accounting for Growth, and its ensuing controversy helped propel it to the top of the bestsellers chart, displacing Stephen Hawking's ’A Brief History of Time’ from the No.1 spot. 

He’s been head of research, CEO of a public company, a former top banks analyst (who won’t own a bank in his fund), and is now highly respected Founder and CIO at the global equity fund manager, Fundsmith.

Terry details his progress through finance, including how he examines inconsistencies and checks cash flows. He explains why he believes you cannot be successful in investing unless you break out from the crowd.

He then describes the genesis of Fundsmith, its mission “to run the best fund ever; by which we mean the one with the highest return over the long term adjusted for risk.”  

He then details what he looks for in the companies he selects, red lines, distrusting management gloss and why he believes that equities beat bonds over the long term. Lots to learn!

The Money Maze Podcast is kindly sponsored by Schroders, Bremont Watches, LiveTrade and IFM Investors.

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