#55 The Pugilist

The podcast features an interview with Terry Smith, founder of Fundsmith, who discusses his investment philosophy, recent underperformance, and outlook on the market. Smith attributes recent underperformance to rising interest rates, the rise of the "Magnificent Seven," and the increasing dominance of index funds, which he argues distort capital allocation. He views passive investing as a momentum strategy and believes the market has gone too far with it. Smith also touches on his investment in a car museum in Mauritius, reflecting his passion for cars and their cultural significance. He recommends books by Edward Chancellor, Robert Hagstrom, Connie Brooke and Michael Lewis.