Britain's Warren Buffett pared down every stock in his nearly $13 billion portfolio in the first quarter, with one exception

The Motley Fool··Read original
2▲1 ▼1Impact / 5
Summary · why it matters

Billionaire Terry Smith, known as Britain's Warren Buffett, sold or reduced every single holding in Fundsmith's nearly $13 billion portfolio during the first quarter, except for one new purchase. Smith completely exited four positions and pared down the remaining 33, including several Magnificent Seven stocks, Dow components, and healthcare names. The only new addition was Badger Meter, a water metering and analytics company, with Smith buying 142,491 shares worth $21.7 million. The selling likely reflects historically high stock market valuations, with the S&P 500's Shiller P/E ratio near its second-highest level since 1871. Badger Meter's forward P/E of 28 represents a 33% discount to its five-year average, which apparently drew Smith's interest.

Impact on assets 3

Climate Adaptation & Water▲ · 1 stocks
Badger Meter Inc
BMI
▲ PositiveCapitalrelevance

Smith bought Badger Meter as the only new addition, citing its discounted valuation.

Artificial Intelligence▼ · 1 stocks
NVIDIA Corporation
NVDA
▼ NegativeCapitalrelevance

Smith reduced holdings in Magnificent Seven stocks including NVIDIA, reflecting valuation concerns.

Energy Transition & Power Demand▲ · 1 stocks

Off-coverage companies 1

Fundsmith LLPPrivate± Mixed
relevance

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