Fundsmith’s Terry Smith has been buying these stocks

first_img Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Terry Smith of Fundsmith is a portfolio manager I tend to keep a close eye on. He’s delivered enormous returns for his investors over the last decade and, as a result, is often referred to as ‘Britain’s Warren Buffett’.One way I monitor Smith’s trades is by studying the Fundsmith 13F filings. These are the US regulatory filings that large investment managers are required to complete every quarter. In these filings, managers list their long US equity positions.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Recently, Fundsmith posted its filing for the first quarter of 2021 so here’s a look at some stocks Smith has purchased for his funds recently.Fundsmith goes defensiveThe most recent 13F filing reveals Fundsmith increased its positions in a number of consumer staples stocks. These included Jack Daniel’s owner Brown-Forman, consumer goods company Church & Dwight, healthcare giant Johnson & Johnson, spices specialist McCormick & Co, and soft drinks giant PepsiCo. I think this is an interesting move by Smith. These are all relatively ‘defensive’ stocks. Typically, ones that tend to hold up well when the stock market is falling.To my mind, the fact Smith is adding to these kinds of stocks suggests he’s more than a little cautious about the market right now. Given the amazing run stocks have had recently, I think this is probably a smart move from the portfolio manager. If the market experiences a correction in the near term, these stocks could potentially provide Fundsmith with more than a degree of protection. There’s no guarantee they will do so though. Reopening stocksSmith didn’t only buy defensive stocks throughout the first quarter however. Another stock he added to during the period was Visa, the largest payments company in the world.I like this move. I think Visa should benefit from the reopening of the global economy and the return of international travel. For every $1 spent in physical locations globally, around 15 cents goes through Visa’s vast network. But it’s worth pointing out that Visa stock is quite expensive. So its high valuation (forward-looking P/E ratio of 36) adds a certain amount of risk.Smith also added to medical device maker Stryker during the period. This is potentially another reopening play. It faced challenges last year when elective medical procedures were postponed due to Covid-19. However, now that vaccines are being rolled out and procedures are resuming, the outlook for the company appears to be improving.A pet care stockFinally, it’s also worth noting that Fundsmith added to its holding in Zoetis, the world’s largest producer of medicine and vaccinations for pets and livestock. This stock is held in Fundsmith’s Sustainable Equity fund. And this move suggests to me Smith is pretty bullish on the outlook for the ever-growing pet care industry. Fundsmith’s Terry Smith has been buying these stocks “This Stock Could Be Like Buying Amazon in 1997” Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Edward Sheldon owns shares in Visa and has a position in Fundsmith. The Motley Fool UK owns shares of and has recommended Visa. The Motley Fool UK has recommended Johnson & Johnson and McCormick. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. See all posts by Edward Sheldon, CFA Edward Sheldon, CFA | Friday, 21st May, 2021 center_img I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Image source: Getty Images I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Enter Your Email Address Our 6 ‘Best Buys Now’ Shares Simply click below to discover how you can take advantage of this.last_img

Leave a Reply

Your email address will not be published.Required fields are marked *