Fundsmith LLP: “The Purchase of Amazon (AMZN) has Attracted a Lot of Attention”

Fundsmith LLP, an investment management firm, published its “Fundsmith Equity Fund” fourth-quarter 2021 investor letter – a copy of which can be downloaded here. The T Class Accumulation shares, the most commonly held share class, rose by +22.1% in 2021 and compares with a rise of +22.9% for the MSCI World Index in sterling with dividends reinvested. The Fund marginally underperformed this comparator in 2021 but is still the best performer since its inception in November 2010 in the Investment Association Global sector with a return 357 percentage points above the sector average which has delivered just +213.9% over the same timeframe. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Fundsmith Equity Fund, in its Q4 2021 investor letter, mentioned Amazon.com, Inc. (NASDAQ: AMZN) and discussed its stance on the firm. Amazon.com, Inc. is a Seattle, Washington-based e-commerce company with a $1.6 trillion market capitalization. AMZN delivered a -3.30% return since the beginning of the year, while its 12-month returns are up by 3.10%. The stock closed at $3,224.28 per share on January 13, 2022.

Here is what Fundsmith Equity Fund has to say about Amazon.com, Inc. in its Q4 2021 investor letter:

“I don’t intend to go into the reasoning on every sale and purchase transaction but the purchase of Amazon has attracted a lot of attention as we had previously declined to purchase its shares. Rather than give a lengthy rationale I would rather summarise it with a quote from the economist (and successful fund manager) John Maynard Keynes who said, ‘When the facts change, I change my mind.’ Although it could be explained by the simpler aphorism ‘Better late than never’ or at least it will be if our purchase delivers the performance we expect.”

Photo by Bryan Angelo on Unsplash

Our calculations show that Amazon.com, Inc. (NASDAQ: AMZN) ranks 3rd on our list of the 30 Most Popular Stocks Among Hedge Funds. AMZN was in 242 hedge fund portfolios at the end of the third quarter of 2021, compared to 271 funds in the previous quarter. Amazon.com, Inc. (NASDAQ: AMZN) delivered a -2.29% return in the past 3 months.

In December 2021, we also shared another hedge fund’s views on AMZN in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.