Terry Smith Abandons Fundsmith’s ‘Do Nothing’ Investment Strategy

Terry Smith runs an investment fund called Fundsmith.

He was known for buying strong companies and holding them for a long time.

This was sometimes called a “do nothing” strategy.

But Fundsmith has changed its investments a lot in recent years.

Its U.S. stock portfolio became much smaller between 2021 and 2026.

In the latest quarter, the fund bought 13 new stocks and sold six completely.

Its biggest holdings now include Marriott International, Stryker, Waters Corp, Visa, and Uber.

Smith says market behavior has made it harder to simply hold a company while its share price falls.

He also says Warren Buffett could use that approach more easily because Berkshire Hathaway was a closed fund he controlled.