Terry Smith's Fundsmith Portfolio: Focus on Top Holdings
Terry Smith's Fundsmith portfolio, as of March 31, 2026, shows significant concentration in select sectors and holdings.
Top Holdings Analysis
Fundsmith's portfolio, managed by Terry Smith, is heavily concentrated in a select group of stocks as of March 31, 2026. The top ten holdings by total stock value represent the core of this investment strategy. Marriott International (MAR) leads with a substantial allocation of $1.10 billion, followed by Johnson & Johnson (JNJ) at $1.01 billion, UnitedHealth (UNH) at $956 million, and Visa (V) at $938 million. These large positions indicate a strategy focused on established, high-quality companies with strong competitive advantages.
High Sector Concentration
The portfolio exhibits significant concentration across several key sectors. Healthcare is particularly prominent, with UnitedHealth (UNH) and Johnson & Johnson (JNJ) being major components. Technology also shows strong representation through companies like Microsoft (MSFT) and Alphabet (GOOGL). Financial Services is another concentrated area, highlighted by Visa (V). This suggests a deliberate strategy favoring sectors perceived to offer stable growth and resilience, with a preference for large-cap, defensive elements within these sectors.
Recent Holding Changes
Examining the changes in holdings provides insight into recent portfolio adjustments. Several top holdings show a decrease in shares compared to the previous period. Marriott International saw a reduction of 1.5% in its share count, while Visa experienced a 12.2% decrease. Other notable reductions include UnitedHealth (-1.0%) and Alphabet (-15.5%). These changes, while varying in magnitude, reflect ongoing management of these significant positions, potentially indicating a belief in the companies' long-term prospects despite temporary share reductions.
Investment Strategy Focus
Terry Smith's investment approach at Fundsmith appears centered on deep value investing within concentrated sectors. The portfolio's structure, with a few large holdings dominating the allocation, suggests a strategy that prioritizes deep understanding and conviction in select high-quality companies. The emphasis on sectors like Healthcare, Technology, and Financial Services aligns with a focus on industries with strong fundamentals and potential for long-term growth. The strategy seems to favor established players with proven track records, aiming for capital appreciation through ownership in exceptional businesses.