Haleon ROCE reduced because of debt from spin-off.

Both are excellent businesses with low 20s operating margins and high ROCs. HLN is growing a bit faster right now with higher international and EM exposure.

What makes you think smithson will outperform fundsmith in the next decade ? And is Simon Barnard “that”world class ? For what it is worth I am also invested in both, but am noticing that smithson is still, and has been for a long while, well below NAV even after lots and lots of share buy backs. I do hope you are right.

All else equal between fs and sson (viz. they both own great co’s, with high roce and profitable growth etc), then SMEs should grow faster than Mega-caps: 12-14% p.a. vs 10-12% p.a, say (and assuming the share price follows over time). Over a decade that 2% compounded is meaningful. In addition, as you rightly say, sson is at a >10% discount. Here, I regard buy-backs in sson as the same as per a single co: if it’s a great co at a low price(>10% discount), then buy-backs will add value. So, buying back at >10% discount will contribute an a guesstimated 0.5% p.a to the 2% above, total 2.5%.Otoh, the discount will likely close, so 0.5% pa could also come from this. Plus, I don't blame SB for the discount: that's market sentiment and is a great opportunity for investors. Fs has had some wonderful contributors (msft, novo, idxx), but sson may well have its equivalents. We don’t know which ones yet, but there are several potential contenders. Sson has been on a roller-coaster in 5 years: from overpriced (£20 in late 2021) to under-priced (Octobers 22 and 23). Listening to SB, I hear someone who is constantly analysing/reflecting/learning on improvements, the next decade will show the benefit of that. You can bet that if the fcfy gets to 2% again (Late 21) and the discount is still present SB will act (I trust the board will accommodate). SB says ‘time’ will close the discount, but actually the discount is, in extremis, wholly voluntary. The portfolio now is in a super-good shape and at attractive prices too. The annual letter estimated a 3% fcfy. Adding 10% for the discount=3.3% (and higher if you bought in the October’s). Then, 3.3+(12-14%) growth above+0.5% (buy-backs/discount closing)=>15%pa (16.8%). Plus, I personally feel the board could be smarter (some gearing in Octobers 22 and especially 23) would have been good, rather than trotting out the usual (volatility, debt etc). I think a quantified policy would be good to set out now for the next market wobble. I hope that helps/feel free to disagree! @@johndoh539

Hope you are correct. Thanks for your thorough and full reply. I suppose that another plus for sson is that everything still has to go through Terry, So perhaps I should have more confidence. Perhaps as you say it was overpriced at £20

Thank you John - and I hope so too!

FS - brilliant. Ss - dogshit.

Same here, I wish I did. I'm finishing all the ASMs in their yt channel

Any chance you could share which tracker this is, and how long you’ve been holding it?

@@stevetop5970 hi Steve , I am very tempted to do so but I rather worry about providing information like that due to the risk that the wrong person could find it. But I can assure you it’s true, look at the performance over the last 5 years. Fundsmith has been quiet average.

Terry has returned 15% her annum on average since inception and has only recently underperformed for the last 3 years.

@@jlazaruss that’s alright then!

If I were to make a guess based on Terry's investment style: Nintendo.

Think it's Keyence Corporation - make things for automating industry processes like scanners and robots

Hi😢o 😅

Because its not on any other channel dummy!

Because 😂

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