Latest news with #TerrySmith
Yahoo
10 hours ago
- Business
- Yahoo
Billionaire Terry Smith Sold Fundsmith's Entire Stake in Apple and 11X'd His Position in a Company Whose Addressable Market Can Hit $149 Billion by 2032
Key Points Quarterly Form 13Fs offer an up-close look at which stocks Wall Street's smartest asset managers have been buying and selling. Though profit-taking may explain why billionaire Terry Smith exited his fund's position in Apple, there may also be more nefarious factors at work. A market leader in an industry where consumer expenditures consistently increase is the new apple of Terry Smith's eye. 10 stocks we like better than Zoetis › The flow of information is constant and sometimes overwhelming on Wall Street. Trying to interpret an onslaught of earnings reports and monthly economic data releases each quarter can easily allow something of importance to go unnoticed. For example, May 15 marked the deadline for institutional investors with at least $100 million in assets under management to file Form 13F with the Securities and Exchange Commission. This is a required filing no later than 45 calendar days following the end to a quarter that provides investors with an up-close look at which stocks, exchange-traded funds (ETFs), and select options Wall Street's smartest asset managers have been buying and selling. As you might have guessed, Berkshire Hathaway's billionaire CEO Warren Buffett tends to be the most-followed of all money managers -- but he's not the only billionaire fund manager known for their investing prowess. The aptly dubbed "Warren Buffett of Britain," billionaire Terry Smith of Fundsmith, is another asset manager investors closely follow. Smith is an ardent value investor who, like Buffett, has an exceptional track record of spotting phenomenal deals hiding in plain sight. Over a four-quarter period (April 1, 2024 – March 31, 2025), Fundsmith's 13Fs show Terry Smith completely dumped Berkshire Hathaway's No. 1 holding, Apple (NASDAQ: AAPL), and more than 11X'd his fund's stake in a company whose addressable market is expected to grow by a compound annual rate of 10.5% through 2032. Britain's top billionaire value investor sent Apple stock packing For more than half a decade, Apple has been Berkshire Hathaway's top holding. Buffett has come to appreciate the exceptional loyalty Apple's customers show to the brand, CEO Tim Cook's leadership in building up its higher-margin subscription services segment, and Apple's world-leading capital-return program. Since kicking off its share-repurchase program in 2013, Apple has bought back around $775 billion worth of its own stock and reduced its outstanding share count by more than 43%. This has had a positive impact on earnings per share (EPS) and has made Apple stock more fundamentally attractive to value-seeking investors. Despite these positives, the Warren Buffett of the U.K. exited his fund's entire stake in Apple over the last year, with 1,597,544 shares being sold. One possible reason behind this selling activity is simple profit-taking. Between the third quarter of 2022, which is when Fundsmith first opened a position in Apple, and sometime in the third quarter of 2024, which is when Terry Smith sent these shares to the chopping block, shares of the company rallied from roughly the $150s to the $220s. This is a really nice gain for a megacap company in just two years, and may have enticed Fundsmith's billionaire chief to take his chips off the table. But there may be more to this selling activity than meets the eye. For instance, Apple isn't the value stock it once was. Between 2015 and 2019, investors could buy shares of the iPhone-maker for anywhere between 10 and 20 times trailing-12-month (TTM) EPS. But as of this writing following the close of trading on July 21, Apple is trading at a lofty 33 times TTM EPS. Not only is the stock market at one of its priciest valuations spanning more than 150 years, but it's been a long time since Apple stock was consistently this pricey. What makes Apple's multiple expansion all the more egregious, and may signal why Terry Smith kicked the stock to the curb, is the company's complete lack of growth. Between the end of fiscal 2021 and fiscal 2024 (Apple's fiscal year ends in late September), its net income actually fell from $94.7 billion to $93.7 billion. But because of Apple's aggressive share buyback program, its EPS rose from $5.67 to $6.11. If investors dig beneath the headline numbers, they'll discover that Apple's physical devices have been a drag for more than three years. Though it's possible Apple's investments in artificial intelligence (AI) will reignite its growth engine, a historically pricey stock sporting no growth in net income is an unfavorable combination. Billionaire Terry Smith believes this stock has legs Like Berkshire's Warren Buffett, Fundsmith's billionaire investor has been highly selective about his buying activity. Since the end of March 2024, Terry Smith has added to seven existing holdings and purchased stakes in four new stocks. Among these 11 buys, the one that really stands out is animal health medicines and diagnostics company Zoetis (NYSE: ZTS). For more than three years, Smith's fund had been holding in the neighborhood of 220,000 to 265,000 shares of Zoetis each quarter. But during the first quarter, 2,319,158 shares of Zoetis stock were purchased, which increased Fundsmith's position by 1,020% in just three months. One logical reason to believe Zoetis has legs is the virtually unstoppable growth in the global animal health market. Between medicines needed for livestock and the ever-expanding companion animal market (e.g., dogs and cats), Polaris Market Research projects the global animal health market will grow from $67 billion in 2024 to $149 billion by 2032. Additionally, sales data from the American Pet Products Association shows that U.S. pet industry expenditures don't decline on a year-over-year basis, regardless of the challenges thrown pet owners' way. Pets are often viewed as members of the family, and owners have demonstrated a willingness to spend freely to ensure the health and happiness of their "family" member. Beyond macro catalysts, billionaire Terry Smith is likely impressed by Zoetis being in the pole position among animal health companies. Zoetis has the largest share of the global animal health market, with north of 300 products spanning eight animal species, and 17 therapies generating at least $100 million in annual sales. Even though brand-name therapies have a finite period of sales exclusivity, the growth, pricing power, and superior margins associated with introducing novel drugs is well worth it. Furthermore, Zoetis has demonstrated a willingness to grow inorganically in order to expand its ecosystem of products and services. Since this decade began, it acquired Performance Livestock Analytics and Fish Vet Group to improve its diagnostic capabilities, and purchased Basepaws, which is a pet-care genetics company that ties into its diagnostic and novel-drug development programs. The steady expansion of Zoetis' ecosystem ensures that the loss of sales exclusivity on a single drug won't rock the boat. Lastly, billionaire Terry Smith may be attracted to Zoetis' reasonable valuation. Based on Wall Street's consensus EPS for 2026, Zoetis stock is trading at less than 22 times forecast EPS. This represents a 34% discount to its average forward-year earnings multiple over the trailing half-decade. Should you invest $1,000 in Zoetis right now? Before you buy stock in Zoetis, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Zoetis wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $634,627!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,046,799!* Now, it's worth noting Stock Advisor's total average return is 1,037% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Sean Williams has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, and Zoetis. The Motley Fool has a disclosure policy. Billionaire Terry Smith Sold Fundsmith's Entire Stake in Apple and 11X'd His Position in a Company Whose Addressable Market Can Hit $149 Billion by 2032 was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
ABC News
7 days ago
- Climate
- ABC News
Outback NSW graziers destock as 'flogging' from kangaroos worsens dry times
While one side of New South Wales has been drenched in recent weeks, the other is crying out for rain. Large parts of the state's outback have received less than 100 millimetres this year. In contrast, Sydney received 70mm and areas south of Wollongong got 100mm and 200mm in a matter of days. The dry spell has left some sheep and cattle graziers with no choice but to remove or strongly consider getting rid of their stock. Rainie Weston lives on Marrapina Station, 160 kilometres north of Broken Hill, and is one of those who has made the decision to destock completely. "It's a long time since we've had continual general rain," she said. For Ms Weston, the impact of the hot and dry weather has been amplified by "thousands" of feral goats and kangaroos. "They're just smashing fences and coming in every which way … they have an enormous grazing effect. "You've got thousands of them coming in … what food should have lasted you another six months is pretty well gone before your eyes." Finding agistment for her stock had been difficult while other areas of the country struggled with low rainfall. "We started looking for agistment. We weren't able to find any. We sold breeding cows," Ms Weston said. "We've since found agistment far and wide, [in] three different directions for the balance of our cattle." Pastoralist Terry Smith was also dealing with "considerable pressure" from kangaroos in the past few months, and had begun destocking. "It's pretty hard to estimate, but I pulled up there one day on a bit of open country and I counted 600 going across in front of me," he said. The overabundance was hard for local graziers to manage. "You can get permits to shoot or get roo shooters in … [but] you take 65 roos out a night in a population of probably 35,000 to 40,000 and it doesn't make much difference," Mr Smith said. Inundated by kangaroos, Mr Smith had already witnessed them dying. "Kangaroos are property of the Crown … it sort of makes you wonder what the rules are for the government … why they're not responsible for the welfare of these animals." Ms Weston and Mr Smith hoped rain would fall across the region, but both were preparing for lean times ahead. Many graziers had still not recovered from the previous drought, which lasted from 2016 to as late as 2022 in certain areas. "Just because you've got green feed [doesn't mean] the drought's not necessarily over," Mr Smith said. "You've still got to get your numbers back, and you catch up on what you missed out on for the past few years. "I think a lot of people … [would've] liked a couple more years of catching up. [That] would have been good."
Telegraph
16-07-2025
- Business
- Telegraph
Even the Guinness craze could not save the boss of Britain's booze empire
In a sign of the poorer performance, she earned just over £3m in her first year leading the company – roughly £7m lower than the £10.6m total remuneration paid to Menezes the prior year. The group's performance in the US, its most crucial market, flatlined as high inflation hammered households' spending on both sides of the Atlantic. Sales at the company declined by 1.4pc in the year to July 2024, with Diageo blaming a 2.5pc decline in North American sales on the 'cautious consumer environment'. 'In the immediate aftermath of the pandemic Americans turned to making cocktails at home, and they drank vast quantities of home cocktails,' says the City source. 'The whole thing wasn't sustainable. Diageo wasn't unique in that they benefited from it and then. But for the last year or two, it's continued to be weak.' Last year Terry Smith, the star fund manager, dumped his stake in Diageo, citing worries over the impact of weight loss drugs on the global alcohol market, given they have been shown to reduce consumption. Fewer people drinking alcohol has taken the shine off Diageo's stock in trade, say analysts. 'The company seemed oblivious to shifting consumer trends, with younger people showing less interest in drinking alcohol. At the same time, wealthier individuals cut back on luxury goods and that hurt Diageo's spirits sales,' says Dan Coatsworth, of AJ Bell. Feeling the pain Diageo has blamed its woes on declining consumer confidence and economic uncertainty in the global economy. In May, Ms Crew insisted that bosses 'continue to believe in the attractive long-term fundamentals of our industry and in our ability to outperform the market'. Diageo is not alone in feeling the pain amid shifting consumer tastes. 'Clearly she's had a very difficult set of circumstances, and Diageo hasn't done significantly worse than say, [Beefeater gin owner] Pernod Ricard, in terms of financial results,' says the City source. '[Diageo's performance] has set up a debate around [whether] this is pressure on consumers, whether it's low-income consumers or 21 year-olds who just don't have enough money to buy booze, or if it's more structural in that everybody's decided either don't want to drink booze, or they're taking skinny jabs and aren't able to drink booze.' Diageo has also had to contend with worries over how Donald Trump's presidency could hurt it. Diageo said earlier this year that Mr Trump's tariffs would cost it about £110m annually – despite Sir Keir Starmer signing a much-hyped trade deal with the US. This brought tariffs on British steel and aluminium down to zero but a 10pc levy on other goods including Diageo's drinks remains. Looking ahead Some investors have also been worried by the direction of the company under Ms Crew and are understood to have questioned whether key hires have the right level of experience to navigate the turmoil. 'The disquiet has been building,' said the city source says. 'We haven't seen an activist investor coming out, but I would be surprised if you met any investor who's saying this is the right track.' Not everyone is so downcast. 'We think there is a buying opportunity with shares currently undervalued,' says Verushka Shetty, analyst at Morningstar. 'Diageo's entire portfolio is the strongest in the industry, based on aggregate brand power.' Still, it all means there is little victory to be claimed in the success of Guinness for now. A search for a full time replacement is underway. In the meantime, chief financial officer Nik Jhangiani – who joined Diageo from Coca Cola last year – has been handed the reins as interim boss. He has unveiled plans to slash $500m (£372m) worth of costs from the company and sell off underperforming brands to help revitalise Diageo. Investment bank Jefferies called him a 'newish heavyweight CFO' in a note to investors this week, adding: 'We see him bringing fresh perspectives on cost discipline, cash and deleveraging, sharpening execution to drive greater consistency of delivery.' Shares rose by about 4pc on Wednesday as Ms Crew's departure was announced. But gains were quickly pared back – suggesting investors are wary of getting ahead of themselves. 'The cost cutting is great. It helps protect the profits. It helps protect the dividend. It helps reduce the leverage. It's the right thing to do,' says the city source. 'But at the end of the day, Diageo needs to return to growth. This is a business that used to be growing around 5pc per annum, and in the last 12 months, it's been flat, and it's probably going to be flat for at least the next six months.' Even with Guinness conquering the UK, it will be some time before the bosses in Diageo's plush London HQ have cause for a celebratory drink.
Daily Mail
08-07-2025
- Business
- Daily Mail
Rachel Reeves' uncle reveals why she was crying at PMQs as he blasts Keir Starmer and Labour for 'joke' first year in power
Chancellor Rachel Reeves ' uncle believes Keir Starmer was to blame for her tears at PMQs after she cited a 'personal issue' for sobbing in the Commons. Terry Smith, 72, the brother of the Chancellor's mother Sally Reeves, also advised his niece to 'stop spending money on the migrants and focus on fixing the country instead'. But the retired construction company owner and vintage car enthusiast, who hails from north Kent, is clear that the Prime Minister, in his view, was responsible for Ms Reeves' sobbing. 'I think Rachel was upset because she wasn't getting the backing she deserved, Keir Starmer immediately backtracked and backed her', he told MailOnline today. And he does not think she should be blamed for some of the 'farcical' policies and decisions Labour has made - pointing the finger at the PM, Angela Rayner, Ed Miliband 'and the rest'. The pound and bond markets plunged as tears tumbled down her face while the Chancellor looked directly at the Labour leader. But she later insisted she had been dealing with a 'personal issue' - not a row with her boss or colleagues. But her uncle Terry told MailOnline: 'For Rachel to be taking all the responsibility just doesn't seem right'. He added: 'I don't agree with Rachel's politics, but I don't think she deserves all the blame. Keir Starmer needs to take some responsibility, as do Angela Rayner, Ed Miliband and the rest - they are all begging for money from her for their departments'. Terry, who has said he is proud of his niece but opposes her political views, has admitted he is upset about the way Labour Government has targeted pensioners. 'I'm a pensioner, I have paid my dues all my life. I think pensioners have been wrongly treated and should not be involved in this issue and should be left alone', he said. 'I never thought the winter fuel payments should be going to rich people - but now it seems like they're going to everyone again. They should be means tested. 'The benefits policy, obviously we need to get the costs lower, but I don't understand where this new black hole has come from. 'When she started Rachel said there was a black hole, she filled that, and now there's another one. 'They seem to have spent all the money on the NHS and now there's nothing left for anything else - that and the people coming across on small boats. 'They should just stop spending money on the migrants and focus on fixing the country instead'. He added: 'It has just been farcical - the whole thing is a joke.' Uncle Terry spoke out after Keir Starmer 's claim that he did not know Rachel Reeves was in tears was branded 'nonsense' after the Tories insisted they gave Labour 'early warning' of her distress. Tory MPs revealed they alerted Labour whips to the fact that the Chancellor was weeping in the Commons to ensure she got help. They say that was at 11.43am – 17 minutes before Prime Minister's Questions when Ms Reeves had tears rolling down her cheeks as she sat next to an apparently oblivious Sir Keir. One Tory MP said: 'It simply beggars belief that with that much warning, the PM wasn't told. 'Nearly 20 minutes before PMQs began, we could see Reeves was already tearful sitting on the front bench and we alerted Labour whips to the problem. 'It's nonsense to say Starmer wouldn't have been aware.' Last night Downing Street was still insisting Sir Keir spent the entire half-hour session of questions unaware of her trauma. But amid continued confusion, party sources claimed last night that Labour whips were so worried at Ms Reeves' state of mind, they tried to stop her appearing alongside Sir Keir. The Treasury insisted her distress was caused by a personal matter, while Ms Reeves sought to bounce back next day with an unexpected appearance at the launch of the Government's ten-year health plan They said whips pleaded with Ms Reeves – who had briefly come out of the Chamber – not to go back inside. But sources close to the Chancellor said there was 'no truth' in that claim. Ms Reeves said yesterday she regretted going into PMQs in tears 'after a tough day in the office'. She told The Guardian: 'It was a personal matter but it was in the glare of the camera. 'And that's unfortunate, but I think people have seen that I'm back in business and back out there.' The events – which sparked turmoil on financial markets – began after Ms Reeves was rebuked by Speaker Sir Lindsay Hoyle as she entered the Commons over taking too long to answer Treasury questions the previous day. She was overheard replying that she was 'under so much pressure' before briefly taking her seat but then leaving afterwards in what appeared to be distress. To the surprise of some Labour MPs, Ms Reeves then reappeared to take her place at Sir Keir's side when he arrived for PMQs. But to the horror of colleagues, the self-styled Iron Chancellor then wept beside the PM. MPs were surprised that Sir Keir was seemingly oblivious to how upset she was, even after Tory leader Kemi Badenoch pointed out how 'absolutely miserable' she looked. Sir Keir also forgot to guarantee that his Chancellor's position was safe after her role in last week's humiliating U-turn on saving almost £5 billion from controversial welfare cutbacks. The Government was forced to deny reports that Sir Keir and his deputy Angela Rayner had rows with Ms Reeves over the benefits fiasco which had upset her. The Treasury insisted her distress was caused by a personal matter, while Ms Reeves sought to bounce back next day with an unexpected appearance at the launch of the Government's ten-year health plan. But questions have remained over how Sir Keir could not have been aware of her state of mind – especially as his parliamentary aide Chris Ward tapped her on the shoulder to check she was OK.
Daily Mail
08-07-2025
- Business
- Daily Mail
EXCLUSIVE Rachel Reeves' uncle reveals why she was crying at PMQs as he blasts Keir Starmer and Labour for 'joke' first year in power
Chancellor Rachel Reeves ' uncle believes Keir Starmer was to blame for her tears at PMQs after she cited a 'personal issue' for sobbing in the Commons. Terry Smith, 72, the brother of the Chancellor's mother Sally Reeves, also advised his niece to 'stop spending money on the migrants and focus on fixing the country instead'. But the retired construction company owner and vintage car enthusiast, who hails from north Kent, is clear that the Prime Minister, in his view, was responsible for Ms Reeves' sobbing. 'I think Rachel was upset because she wasn't getting the backing she deserved, Keir Starmer immediately backtracked and backed her', he told MailOnline today. And he does not think she should be blamed for some of the 'farcical' policies and decisions Labour has made - pointing the finger at the PM, Angela Rayner, Ed Miliband 'and the rest'. The pound and bond markets plunged as tears tumbled down her face while the Chancellor looked directly at the Labour leader. But she later insisted she had been dealing with a 'personal issue' - not a row with her boss or colleagues. But her uncle Terry told MailOnline: 'For Rachel to be taking all the responsibility just doesn't seem right'. He added: 'I don't agree with Rachel's politics, but I don't think she deserves all the blame. Keir Starmer needs to take some responsibility, as do Angela Rayner, Ed Miliband and the rest - they are all begging for money from her for their departments'. Terry, who has said he is proud of his niece but opposes her political views, has admitted he is upset about the way Labour Government has targeted pensioners. 'I'm a pensioner, I have paid my dues all my life. I think pensioners have been wrongly treated and should not be involved in this issue and should be left alone', he said. 'I never thought the winter fuel payments should be going to rich people - but now it seems like they're going to everyone again. They should be means tested. 'The benefits policy, obviously we need to get the costs lower, but I don't understand where this new black hole has come from. 'When she started Rachel said there was a black hole, she filled that, and now there's another one. 'They seem to have spent all the money on the NHS and now there's nothing left for anything else - that and the people coming across on small boats. 'They should just stop spending money on the migrants and focus on fixing the country instead'. He added: 'It has just been farcical - the whole thing is a joke.' Uncle Terry spoke out after Keir Starmer 's claim that he did not know Rachel Reeves was in tears was branded 'nonsense' after the Tories insisted they gave Labour 'early warning' of her distress. Tory MPs revealed they alerted Labour whips to the fact that the Chancellor was weeping in the Commons to ensure she got help. They say that was at 11.43am – 17 minutes before Prime Minister's Questions when Ms Reeves had tears rolling down her cheeks as she sat next to an apparently oblivious Sir Keir. One Tory MP said: 'It simply beggars belief that with that much warning, the PM wasn't told. 'Nearly 20 minutes before PMQs began, we could see Reeves was already tearful sitting on the front bench and we alerted Labour whips to the problem. 'It's nonsense to say Starmer wouldn't have been aware.' Last night Downing Street was still insisting Sir Keir spent the entire half-hour session of questions unaware of her trauma. But amid continued confusion, party sources claimed last night that Labour whips were so worried at Ms Reeves' state of mind, they tried to stop her appearing alongside Sir Keir. They said whips pleaded with Ms Reeves – who had briefly come out of the Chamber – not to go back inside. But sources close to the Chancellor said there was 'no truth' in that claim. Ms Reeves said yesterday she regretted going into PMQs in tears 'after a tough day in the office'. She told The Guardian: 'It was a personal matter but it was in the glare of the camera. 'And that's unfortunate, but I think people have seen that I'm back in business and back out there.' The events – which sparked turmoil on financial markets – began after Ms Reeves was rebuked by Speaker Sir Lindsay Hoyle as she entered the Commons over taking too long to answer Treasury questions the previous day. She was overheard replying that she was 'under so much pressure' before briefly taking her seat but then leaving afterwards in what appeared to be distress. To the surprise of some Labour MPs, Ms Reeves then reappeared to take her place at Sir Keir's side when he arrived for PMQs. But to the horror of colleagues, the self-styled Iron Chancellor then wept beside the PM. MPs were surprised that Sir Keir was seemingly oblivious to how upset she was, even after Tory leader Kemi Badenoch pointed out how 'absolutely miserable' she looked. Sir Keir also forgot to guarantee that his Chancellor's position was safe after her role in last week's humiliating U-turn on saving almost £5 billion from controversial welfare cutbacks. The Government was forced to deny reports that Sir Keir and his deputy Angela Rayner had rows with Ms Reeves over the benefits fiasco which had upset her. The Treasury insisted her distress was caused by a personal matter, while Ms Reeves sought to bounce back next day with an unexpected appearance at the launch of the Government's ten-year health plan. But questions have remained over how Sir Keir could not have been aware of her state of mind – especially as his parliamentary aide Chris Ward tapped her on the shoulder to check she was OK. Later on Wednesday, Sir Keir
