Can’t remember where but on the subject of the Woodford debacle they were referencing a study on fund managers which found that it you took the top 5% in a 5 year window, only 8% managed to stay in the top 5% over the next 5 years…
Yep.
Fundsmith is a managed fund, nothing more, nothing less, but certainly not magic.
The vast majority of active funds under perform the market year on year. The ones that beat the market for a period of time, like Fundsmith or Mr Woodford’s vehicle, gain a mythological status.
Past performance is not indicator of future returns. By all means invest with this chap, but he not the messiah. Smith just has an investment fund and has rolled 6 a few times.
Even Buffet recommends that investors should just stick their cash in an index fund.
There’s always a new investment sage until it goes quiet.
By all means invest with them, it’s a sensible well diversified fund. However there are cheaper and far far more diversified funds out there.