From Nasdaq: 2025-05-10 04:10:00

Terry Smith, of Fundsmith, draws inspiration from Warren Buffett, referencing him multiple times in his Owner’s Manual. Smith’s investment approach mirrors Buffett’s focus on great companies with strong fundamentals. Fundsmith’s impressive performance, returning 607.3% since 2010, showcases the success of this strategy.

Fundsmith’s top three holdings, with Meta Platforms accounting for 11.25% of assets, have been key contributors to the fund’s performance. Meta’s focus on AI development and dominant advertising capabilities have propelled its growth. Microsoft’s evolution into a cloud computing and AI powerhouse has also been a lucrative investment for Fundsmith.

Stryker, another top holding at 8.5%, has shown resilience despite fears of economic slowdown and tariffs affecting its margins. The company’s innovation and broad portfolio of equipment have positioned it well for long-term growth. With a forward P/E ratio of 28.3, Stryker offers a fair valuation for its competitive positioning and growth potential.

Investors considering Meta Platforms should weigh the insights provided by The Motley Fool’s Stock Advisor team. While Meta Platforms may not be among their top 10 stock picks, past recommendations like Netflix and Nvidia have yielded significant returns. Joining Stock Advisor could provide access to potentially lucrative investment opportunities.



Read more at Nasdaq: Billionaire Terry Smith, “the English Warren Buffett,” Has 31% of His Hedge Fund’s Portfolio Invested in 3 Exceptional Stocks