AI summary and analysis
2025 semi-annual letter disclosed Fundsmith’s first half portfolio adjustments: began to accumulate Zoetis, Intuit, EssilorLuxottica, and sold PepsiCo and Brown-Forman.
Key points
- This semi-annual letter is closer to a portfolio move than an annual letter, with a direct look at Fundsmith's trade-offs between consumer, software, animal health and eyewear faucets.
- Buying Zoetis shows that Smith still prefers high-quality businesses with high gross margins, strong repurchase attributes, and low correlation with the economic cycle.
- Rebuying or accumulating Intuit signals Fundsmith's willingness to return to familiar companies when software asset valuations and business quality realign.
- The sales of PepsiCo and Brown-Forman were part of a reassessment of portfolio quality and growth, not a simple switch from consumer staples to technology.
- The letter goes on to disclose low turnover and total holding costs, helping to determine whether Fundsmith is truly "buy good companies, don't overpay, do nothing".