Terry Smith: Why I am not investing in the 'terrible' banks

clock

Fundsmith founder Terry Smith, who was once rated the City's top bank analyst, says there is "not a chance" he would invest in the highly problematic banking sector.

As the top banking analyst in the late 1980s, Smith famously issued a 'sell' recommendation on Barclays while working for BZW, Barclays' own investment bank. Just weeks after launching his £37m Fundsmith Equity fund, a high conviction portfolio of currently 22 names, the Tullett Prebon CEO says he is completely avoiding the banking sector. "I would not invest in most financials. Most financials need leverage to perform," Smith says. "I worked in a bank for nine years and I was the number one banking analyst for seven years and I have seen banks in action. What has happened to the b...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on UK

Spring Statement 25: OBR downgrades UK growth forecast to 1% for 2025
UK

Spring Statement 25: OBR downgrades UK growth forecast to 1% for 2025

Growth expected to rise from 2026

Linus Uhlig
clock 26 March 2025 • 2 min read
UK inflation falls to 2.8% in February in boost to chancellor
UK

UK inflation falls to 2.8% in February in boost to chancellor

Spring Forecast takes place today

Linus Uhlig
clock 26 March 2025 • 2 min read
UK businesses to pay four times more for electricity than in 2020
UK

UK businesses to pay four times more for electricity than in 2020

Calls for Covid-style support for energy bills

clock 25 August 2022 • 1 min read