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Global core funds any suggestions (Lindsell tea in global and fundsmith?)
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Tony Salmon
Posted: 30 October 2017 18:12:43(UTC)
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Hi

Can you hold Lindesell train global and fundsmith same time?

I am looking for 3 core funds two being that above is that ok? I have invested anyway just want your view in holding them and your view on any other global core funds to have
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Jim S
Posted: 30 October 2017 18:50:04(UTC)
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I hold both, others may disagree but I think they are quite similar in approach

LT has higher than normal weighting in Japan
Fundsmith is more US focussed

But you could characterise them both as mainly holding consumer-staples type (using the term very broadly) companies based in more developed markets, which are arguably on quite a high p/e already.

Both have had very good returns in recent years, I am sticking with both, but personally I would try to make sure your third choice has a very different approach, just to spread your risk.

You might want balance them out with a global smaller companies (FCS), disruption (SMIT), something defensive (Hawksmore Vanburgh), or mixed (RCP, Baillie Gifford Managed), it depends what your attitude to risk and priorities are, as well as whether you think markets seem a bit high currently (and likelihood of a short-term correction)
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Tony Salmon on 31/10/2017(UTC)
King Lodos
Posted: 30 October 2017 19:04:56(UTC)
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Tony Salmon;52620 wrote:
Hi

Can you hold Lindesell train global and fundsmith same time?


I tried it once but started to develop mild tendonitis and had a flashing sensation sometimes before sleep.
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Jon Snow on 31/10/2017(UTC)
Alan Selwood
Posted: 31 October 2017 00:10:18(UTC)
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Of course you can hold Lindsell Train and Fundsmith Equity Fund at the same time.
The more importnat question is: Should you, and if so, why?

First thought: what are you trying to achieve? Is it a wider spread of large, developed market shares? Why would you do this? Because you fear that Fundsmith's 25-30 shares is not a wide enough spread? Is it because you are not sure whether either fund is perfect, and want to hedge your bets in case either is not good enough after all?

So ask yourself this:
If you had £100,000 in Fundsmith, and the average holding in the fund was £3500 of your money, and one holding died completely on you tomorrow, would the total loss of that £3500 cripple your whole future?
If yes, diversify more (not just equities but bonds, cash deposits, property, gold, etc) until each unit of disaster becomes an irritating flea bite instead of a catastrophe.

Spread your asset classes so that one sector or other is likely to thrive even when others are gasping for oxygen.
Pick holdings that represent well-managed exemplars of those diversified sectors. Choose wisely, then monitor periodically that the portfolio is broadly on on target. Then go and do some gardening, paid work, or whatever helps you, yours, and others.

Only if this is not good enough should you employ fortune-tellers, and who is to say that their answers will be better than your own?
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4 users thanked Alan Selwood for this post.
Micawber on 31/10/2017(UTC), Mr Helpful on 31/10/2017(UTC), Peter Sm on 11/11/2017(UTC), Jpb250 on 19/01/2018(UTC)
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