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Fundsmith LLP Buys 2, Sells 3 in 1st Quarter

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May 17, 2022
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Fundsmith LLP recently filed their 13F report for the first quarter of 2022, which ended on 2022-03-31.

The 13F report details which stocks were in a guru’s equity portfolio at the end of the quarter, though investors should note that these filings are limited in scope, containing only a snapshot of long positions in U.S.-listed stocks and American depository receipts as of the quarter’s end. They are not required to include international holdings, short positions or other types of investments. Still, even this limited filing can provide valuable information.

Fundsmith LLP is an investment management firm based out of London, United Kingdom. The company was established in 2010 by founder Terence Charles Smith, who is currently still with the company today acting as its CEO and CIO. Fundsmith has expanded from its inception to now have an additional office in New Canaan, Connecticut and operates with 17 employees. The company manages over $5.5 billion in total assets under management spread across 5 accounts, all of which are discretionary. Both of the company’s total number of accounts and total assets under management have been increasing in recent years with its total assets under management growing significantly from $2.6 billion back in 2014 to well over twice that amount in just a few years. Fundsmith invests in the public equity markets on a global scale, conducting its research both internally and externally. The company focuses on investing in businesses that are able to sustain a high return, have advantages that are difficult to replicate, resilient to change – particularly technological innovation, and with a high degree of certainty of growth from reinvestment of cash flows, among other critical criteria. Fundsmith invests most heavily in the health care sector, which alone makes up over a third of its total asset allocations, and also invests in the consumer staples sector, making up just under another third, information technology, making up approximately a quarter, and industrials sectors, in order of decreasing allocations. The company invests its allocations heavily in a select few companies with all of its top 5 holdings exceeding 8% of its total holdings and its top 10 holdings making up over three quarters of its total asset allocations. Fundsmith caters mainly to pooled investment vehicles, which alone makes up over three quarters of its client base, and also provides services to charitable organizations.

As of the latest 13F report, the guru’s equity portfolio contained 44 stocks valued at a total of $29,119,000,000. The top holdings were MSFT(10.61%), IDXX(6.80%), and EL(5.42%).

According to GuruFocus data, these were Fundsmith LLP’s top five trades of the quarter.

Adobe Inc


The guru established a new position worth 1,923,197 shares in NAS:ADBE, giving the stock a 3.01% weight in the equity portfolio. Shares traded for an average price of $481.12 during the quarter.

On 05/17/2022, Adobe Inc traded for a price of $409.65 per share and a market cap of $193,559,627,000. The stock has returned -17.20% over the past year.

GuruFocus gives the company a financial strength rating of 8 out of 10 and a profitability rating of 9 out of 10.

In terms of valuation, Adobe Inc has a price-earnings ratio of 40.69, a price-book ratio of 14.03, a price-earnings-to-growth (PEG) ratio of 1.38, a EV-to-Ebitda ratio of 28.73 and a price-sales ratio of 12.15.

The price-to-GF Value ratio is 0.69, earning the stock a GF Value rank of 8.

Johnson & Johnson


Fundsmith LLP reduced their investment in NYSE:JNJ by 6,976,763 shares. The trade had a 2.91% impact on the equity portfolio. During the quarter, the stock traded for an average price of $170.01.

On 05/17/2022, Johnson & Johnson traded for a price of $178.82 per share and a market cap of $470,547,271,000. The stock has returned 7.11% over the past year.

GuruFocus gives the company a financial strength rating of 7 out of 10 and a profitability rating of 9 out of 10.

In terms of valuation, Johnson & Johnson has a price-earnings ratio of 24.09, a price-book ratio of 6.30, a price-earnings-to-growth (PEG) ratio of 6.18, a EV-to-Ebitda ratio of 16.56 and a price-sales ratio of 5.02.

The price-to-GF Value ratio is 1.02, earning the stock a GF Value rank of 6.

Microsoft Corp


Fundsmith LLP reduced their investment in NAS:MSFT by 2,983,934 shares. The trade had a 2.45% impact on the equity portfolio. During the quarter, the stock traded for an average price of $300.8.

On 05/17/2022, Microsoft Corp traded for a price of $266.82 per share and a market cap of $1,995,555,620,000. The stock has returned 6.33% over the past year.

GuruFocus gives the company a financial strength rating of 8 out of 10 and a profitability rating of 10 out of 10.

In terms of valuation, Microsoft Corp has a price-earnings ratio of 27.86, a price-book ratio of 12.26, a price-earnings-to-growth (PEG) ratio of 1.32, a EV-to-Ebitda ratio of 19.79 and a price-sales ratio of 10.45.

The price-to-GF Value ratio is 0.90, earning the stock a GF Value rank of 7.

Mettler-Toledo International Inc


The guru established a new position worth 412,603 shares in NYSE:MTD, giving the stock a 1.95% weight in the equity portfolio. Shares traded for an average price of $1443.89 during the quarter.

On 05/17/2022, Mettler-Toledo International Inc traded for a price of $1236.38 per share and a market cap of $28,041,478,000. The stock has returned -3.23% over the past year.

GuruFocus gives the company a financial strength rating of 5 out of 10 and a profitability rating of 10 out of 10.

In terms of valuation, Mettler-Toledo International Inc has a price-earnings ratio of 36.32, a price-book ratio of 331.56, a price-earnings-to-growth (PEG) ratio of 2.44, a EV-to-Ebitda ratio of 26.27 and a price-sales ratio of 7.56.

The price-to-GF Value ratio is 0.89, earning the stock a GF Value rank of 6.

The Estee Lauder Companies Inc


Fundsmith LLP reduced their investment in NYSE:EL by 1,370,291 shares. The trade had a 1.24% impact on the equity portfolio. During the quarter, the stock traded for an average price of $301.28.

On 05/17/2022, The Estee Lauder Companies Inc traded for a price of $242.58 per share and a market cap of $86,685,285,000. The stock has returned -19.85% over the past year.

GuruFocus gives the company a financial strength rating of 7 out of 10 and a profitability rating of 10 out of 10.

In terms of valuation, The Estee Lauder Companies Inc has a price-earnings ratio of 26.54, a price-book ratio of 14.14, a price-earnings-to-growth (PEG) ratio of 2.68, a EV-to-Ebitda ratio of 18.38 and a price-sales ratio of 4.90.

The price-to-GF Value ratio is 0.88, earning the stock a GF Value rank of 9.


Please note, the numbers and facts quoted are as of the writing of this article and may not factor in the latest trading data or company announcements.

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