Luke

Nothing like hearing this from a CEO:

Here’s a comprehensive list of every stock Terry Smith of Fundsmith has sold and the reasons behind each decision, as explained in his annual letters and shareholder meetings. I hope you find it useful!

Berkshire Hathaway's investment in Scott Fetzer delivered a 24% rate of return just from dividends in the first 8 years of ownership! Buffett paid $315m for the business in 1986 and received $634m in dividends up to 1994.

Shareholder-aligned compensation plan from $ARB "KMP do not participate in any short-term or long-term incentive arrangements. The Board does not believe that incentives based on the Company's short term returns are appropriate to long term wealth creation for shareholders."

I wrote a brief case study on investing in Toys R Us in the 80s. Key takeaways for me were that its decline was visible in the numbers (such as market share) and selling within a couple of years of seeing the evidence would've still yielded a good result. snowballinvesting.co/toys-r-…

2/ Buffett's decision to concentrate his portfolio on a small number of high-conviction bets added significantly to his returns. This was largely due to a few outstanding investments he bet big on.

1/Warren Buffett's stock market returns would've been quite different if each position was equally weighted. Analysing Berkshire's portfolio back to 1977 shows that the portfolio would be worth roughly half of what it is today if each position was equally weighted!