Another fundsmith question

CH would see (only) the 25% invested in FS as part of one's Wealth declaration (Wertschriften- und Guthabenverzeichnis) - that is all.

Then it would make sense as the saved fees are many times any wealth tax.

I'm not yet old enough to take anything out of it, so that point is moot.

Given the choice, therefore, I or T? Is there any material difference other than fees and share price?

Identical find I has lower charges

This is the latest FS thread I found.

I invested a very small amount in FS in 2017 (based on recommendations from EF members) and have seen a remarkable appreciation in that.

However, I was not a Swiss Resident from 2017 until recently so couldn't continue to invest.

Now I am back in CH and am reconsidering continuing investing in either FS or any other low cost ETFs (I am a newbie in the investment world and don't have much experience but am willing to learn)

My 2 questions

1. Is it the right time to invest in FS? (I know no-one can time the market but is it not advisable to wait till the markets correct themselves)

2. Alternatives to FS? I do not have any other trading account, so just to diversify is it better to open an account with a Swiss broker or a US based broker to primarily buy low cost ETFs (primarily Vanguard)

Thanks again to the community for the help!

FS has slightly underperformed on a 6 month view as it's been a boom time & everything has gone up, the stocks held by FS are highly defensive so this is totally expected, their best performance relative to the market will be in bad times.

Of course their 1 year, 3 year, 5 year & since inception is in the top quartile. So yes it's probably a better time to invest v the market than 6 months ago.

I don't understand why you could not invest as you were not resident in CH

I couldn't invest because I was paying taxes in another country and the account was still registered to a swiss address. It was quite difficult from legal resident perspective.

I want to start investing on a regular basis both back in FS and other ETFs.

Any suggestions for brokers? and ETFs apart from Vanguard worth looking at?

Your questions have been asked before by other users.

A quick search over the past posts will give you the answers you are looking for.

I'm considering selling off at least half of my FS holdings on Monday and holding cash until an apparent market bottom (Corona virus driven) out then buying back into FS full bore.

What are you all doing? Holding tight? Selling off?

Depends on how quickly and with what cost you can sell?

I sit tight and buy some more. Mainly because I look at the investment from a longer view.

Same here. Keeping track of a couple of shares i have been eyeing for a while but had held off as they were at an all time high.

I feel its too late to sell unless you know you need the cash in the short term.

https://awealthofcommonsense.com/201...-market-timer/

Why would you do that? Stock market investments are for the long term. Price is considerably higher than 24 December 18.

You do realise the I shares Hit 500p for the first time just 1 week ago so £1 became £5 in just over 9 years.

I am slightly short of cash as I just bought a new home yesterday, otherwise I would be a buyer.

Peter Lynch's fund returned 29% compound over 13 years, the best performing fund in history, the average investor actually lost money due to market timing https://www.alphawealthfunds.com/201...nd-in-history/

EDIT

This is the 3rd panic over coronavirus, the markets recovered & found a new peak on the 2 previous falls.

It is risky because we don't know if the sell off will continue next week. If you are lucky with timing it could be better because you can buy at lower prices a few days after. If not and the market recovers next week then you will be missing out. If we just new the future....

I've been buying, admittedly, probably a bit too much and too soon.

The market may recover next week, if the central banks actually go through with the rumored rate-cutting.

However, given the bleak economic outlook this would be similar to "curing" a heroin-addict by switching him to fentanyl.

It would take another one or two months for production in China to resume to the level it was before - but they are only ramping up very slowly because they still get a sizable number of new infections every day and workers are only returning to their places of work very slowly.

In the meantime, a lot of companies all over the world who rely on reselling Chinese goods are just going bankrupt. Larger companies that rely on parts are waiting because switching suppliers in a complicated supply-chain is very difficult.

Likewise, a lot of Chinese companies are also going to go bankrupt, with the state propping up the larger ones. What kind of impact is that going to have on the world-economy?

Chinese tourism alone is apparently a 300 billion industry that is currently at zero. A good chunk of it usually spent outside the mainland.

If you think, all's peachy and stocks are going to go even higher than the pre-correction craziness once this "little problem" has been sorted out - don't hesitate and buy more. Just be prepared to be in for a very long run.

Thanks All for your thoughts on this. The Rationale behind selling 50% is a risk spread. I take half out to isolate it from further falls while leaving half in with the long term view. Akin to dollar cost averaging but for risk.

everybody has their own situation and risk appetite, so do what you feel is right for you.

tbh, nobody knows what will happen. markets were already stretched and the virus looks like it will have a real impact on earnings - but nobody yet knows to what degree. the first death seems to have happened in the US which will no doubt lead to more panicking.

with markets already at high valuations, it's not a suprise that this now triggers a correction and the downturn has already blown through various technical support levels.

If I was going to guess I think the turmoil will continue next week as well. Obviously, it can go the other way and I am sure at some point it will go higher but we don't know how long this will last.

You seem to have everything figured out. Perhaps you should short the market