Which are the top stocks in India that pass the Terry Smith filter?
As per Equitymaster's Stock Screener, these stocks could potentially meet Terry Smith investing criteria.
- #1 HINDUSTAN ZINC
- #2 BRITANNIA
- #3 TCS
- #4 COAL INDIA
- #5 VARUN BEVERAGES
Terry Smith is known for his style of growth investing. Much of his success is attributable to taking bold bets on a small number of companies and holding them for the long term.
Who is Terry Smith?
Often referred to as the English Warren Buffet, Terry Smith is a notable British fund manager.
Smith joined Barclays as a history graduate in 1974 and became a prominent banking analyst throughout the 1980s. He then founded set up Fundsmith and has managed its flagship Fundsmith Equity Fund since its inception in November 2010.
The fund has delivered an annualized return of 18.4% between inception and the end of November 2021 far outstripping the broad market (the MSCI World index) which has a comparative annualized return of 12.8%.
What is Terry Smith's style of investing?
Terry Smith firmly believes investors should look to buy a small number of high quality, resilient, global growth companies that are of good value and can be held for a long time.
According to Terry Smith, investment is a test of the endurance of investors and the winners are the ones who find a good strategy or fund and stick with it.
He advocates that investors should follow a simple three-step investment strategy - buy good companies, don't overpay and do nothing.
Which are the books written by Terry Smith?
Smith is famous for writing a controversial report 'Accounting for Growth' which later became a bestselling book by the same name.
The book was about accounting frauds by listed companies. However, the report wasn't very well received by his then employer, UBS who fired him from the company.
He has also written Investing for Growth and Fundsmith: Celebrating Five Years of Investing in Decades of Success.