Terry Smith - Fundsmith Investment Management Portfolio

Terry Smith - Fundsmith LLP Q4 2024 Portfolio

Fundsmith, an investment management company managed by Terry Smith, disclosed 38 security holdings in their SEC 13F filing for the fourth quarter of 2024, with a total portfolio value of $23,458,177,867

 
Fundsmith LLP Portfolio Analysis

Fundsmith LLP Portfolio Analysis

Based on 13F filing for reporting period: Q4, 2024

Portfolio Manager

Fundsmith LLP

Filing Date

February 14, 2025

Total Value

$23,458,177,867

Number of Positions

38

Portfolio Allocation

Holdings Breakdown

Rank Company Name Ticker Shares Market Value ($) % of Portfolio

Terry Smith's Fundsmith Portfolio

Q4 2024 Holdings and Strategic Analysis

As of Q4 2024, Terry Smith's Fundsmith portfolio shows notable adjustments across several holdings, illustrating a continued focus on high-quality companies with robust growth prospects and reliable cash flows. The data reveals a pattern of strategic trimming while maintaining core positions in leading technology, healthcare, and consumer companies.

Top Holdings

1
META
Meta Platforms Inc.
Reduced 6.36%
Portfolio: 11.39%
Shares: 4,561,352
Reported Price: $585.51
Value: $2,670,717,000
Meta Platforms remains Fundsmith's largest holding, although the position was trimmed. As the parent of Facebook, Instagram, and WhatsApp, Meta benefits from continued global adoption of social media and robust digital advertising.
2
MSFT
Microsoft Corp.
Reduced 10.34%
Portfolio: 11.12%
Shares: 6,187,033
Reported Price: $421.50
Value: $2,607,834,000
Microsoft, a longstanding core holding, saw a more significant cut this quarter. The tech giant's leadership in enterprise software, cloud computing (Azure), and AI-driven products underpins Fundsmith's long-term conviction.
3
SYK
Stryker Corp.
Reduced 0.05%
Portfolio: 8.19%
Shares: 5,333,977
Reported Price: $360.05
Value: $1,920,498,000
Stryker, a leader in medical devices and equipment, remains a key healthcare holding. Its diversified offerings in orthopedics, surgical equipment, and neurotechnology align with Fundsmith's preference for essential markets.
4
ADP
Automatic Data Processing Inc.
Reduced 10.02%
Portfolio: 6.26%
Shares: 5,013,712
Reported Price: $292.73
Value: $1,467,664,000
ADP provides payroll, HR, and workforce management solutions. The double-digit reduction signals a notable rebalance, but ADP's consistent demand and high client retention fit Fundsmith's model of steady cash generation.
5
V
Visa Inc.
Reduced 16.66%
Portfolio: 6.23%
Shares: 4,622,567
Reported Price: $316.04
Value: $1,460,916,000
Visa saw one of the more substantial reductions this quarter, potentially reflecting profit-taking. Nonetheless, the global payments leader remains integral given the ongoing shift to digital and cashless transactions worldwide.
6
PM
Philip Morris International
Reduced 6.39%
Portfolio: 5.77%
Shares: 11,245,175
Reported Price: $120.35
Value: $1,353,357,000
Philip Morris continues to serve as a high-margin consumer staples holding. Despite regulatory pressures, PM's shift toward reduced-risk products suggests Fundsmith still values its brand strength and cash flow generation.
7
WAT
Waters Corp.
Reduced 0.31%
Portfolio: 5.75%
Shares: 3,634,522
Reported Price: $370.98
Value: $1,348,335,000
Waters, a specialist in analytical instruments for life sciences, remains an important healthcare technology holding. Its consistent revenue from pharmaceutical clients aligns with Fundsmith's emphasis on resilient business models.
8
GOOGL
Alphabet Inc.
Reduced 0.06%
Portfolio: 5.53%
Shares: 6,848,278
Reported Price: $189.30
Value: $1,296,379,000
Alphabet remains a central technology holding despite a negligible trim. With leadership in digital advertising, cloud computing, and AI ventures, its multi-pronged growth potential continues to support its position in the portfolio.
9
MAR
Marriott International
Reduced 0.27%
Portfolio: 5.06%
Shares: 4,255,340
Reported Price: $278.94
Value: $1,186,985,000
Marriott, a global hospitality leader, offers exposure to travel and leisure. The slight reduction suggests modest portfolio adjustment, with continued confidence in Marriott's extensive brand portfolio and rebound in travel demand.
10
IDXX
IDEXX Laboratories
Reduced 0.05%
Portfolio: 4.69%
Shares: 2,662,855
Reported Price: $413.44
Value: $1,100,931,000
IDEXX, specializing in veterinary diagnostics and water testing, saw a marginal cut but remains a crucial healthcare play. The pet healthcare market's ongoing expansion supports IDEXX's long-term growth prospects.

Portfolio Strategy Analysis

1
Widespread Minor Reductions

Most positions experienced reductions, ranging from modest adjustments (IDEXX at 0.05%) to more substantial cuts (Visa at 16.66% and Microsoft at 10.34%). This pattern suggests a portfolio-wide rebalancing or profit-taking approach rather than a fundamental shift in strategy. The consistent trimming across all holdings indicates disciplined portfolio management and likely reflects Terry Smith's approach to managing position sizing after periods of strong performance.

2
Tech and Healthcare at the Forefront

Meta, Microsoft, and Alphabet anchor the technology segment, while Stryker, Waters, and IDEXX bolster healthcare exposure. These sectors align with Fundsmith's preference for businesses that exhibit high returns on capital and stable growth drivers. The technology holdings in particular benefit from strong network effects, cloud computing growth, and digital transformation trends, while the healthcare positions capitalize on demographic trends and consistent research spending.

3
Consumer & Payment Themes

Visa and Philip Morris underscore the portfolio's tilt toward consumer-facing industries, with Visa benefiting from digital payment trends and Philip Morris continuing to generate substantial cash flow despite shifting tobacco consumption patterns. Marriott adds exposure to travel and hospitality recovery, complementing the portfolio with cyclical growth potential. These holdings reflect Smith's focus on companies with pricing power and strong brand recognition that can navigate changing consumer preferences.

Conclusion

Terry Smith's Q4 2024 portfolio shows a disciplined approach to rebalancing and profit-taking, evidenced by small to moderate reductions across nearly all top positions. Despite these trims, core holdings in technology (Meta, Microsoft, Alphabet), healthcare (Stryker, IDEXX), and essential services (ADP, Visa) remain integral to Fundsmith's philosophy.


This consistent strategy aims to capture long-term growth and robust cash flow generation while managing risk through incremental portfolio adjustments. The focus on high-quality companies with enduring competitive advantages, low capital requirements, and resilient business models continues to define Smith's investment approach, even as he tactically adjusts position sizes in response to market conditions and valuations.

Source: SEC.gov | Portfolio analysis as of Q4 2024

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