Terry Smith on Nvidia, banks and the UK market: IC Interviews

In this Investors' Chronicle podcast, Dave Baxter interviews Terry Smith, CEO and CIO of Fundsmith, about investment strategies and current market trends. Smith discusses Fundsmith's holdings, particularly within the "Magnificent Seven" stocks, explaining why they avoid Tesla and Amazon, and remain underweight on Apple due to valuation concerns. He differentiates Fundsmith by highlighting their investments in consumer staples like Procter & Gamble and healthcare stocks like Novo Nordisk, which they initially invested in for its unique approach to drug discovery, not specifically for weight-loss drugs. Smith also touches on the potential impact of weight-loss drugs on consumer staples, favoring companies less exposed to these effects. He emphasizes the importance of good capital allocation, honesty in management, and the limited growth potential of UK-listed companies compared to global competitors. Smith shares his perspective on share buybacks, viewing them as neither inherently good nor bad, and hints at a potential future investment in a bank, contingent on specific opportunities and economic conditions.