FUNDSMITH Annual Shareholders' Meeting February 2026

The Fundsmith Equity Fund annual shareholder meeting addresses recent underperformance and investment strategy, focusing on whether to stick with quality growth companies. Terry Smith attributes underperformance to the concentration of performance in a few tech companies and the shift to index funds, which creates an inelastic market. Despite poor recent results, Fundsmith is sticking to its strategy of investing in good companies, not overpaying, and doing as little as possible. Smith and Julian answer questions about AI's impact, de-dollarization, and the psychological pressures of underperforming, referencing historical speculative bubbles and offering insights into their investment decisions and portfolio positioning.