Portfolio averages Terry Smith style · Wealth Builders Community

Aug 26 in Q&A

Portfolio averages Terry Smith style

I have for some time followed the British super investor Terry Smith. A funny thing about his presentations is, that he presents key metrics for his entire portfolio (averages).

All though my main focus is on selecting and holding individual stocks, I thought it could be fun to take a portfolio view. Here is a snapshot of my current US-stocks portfolio (avg of 24 holdings with weigths between 7,32 % to 2,58 %):

Its quite expensive:

P/E: 28,5 , EV/EBITDA: 20,9 , P/FCF: 24,8

But highly profitable:

Profit margin: 62,4% , FCF Margin: 15,4% , ROCE: 18,3%

And with a solid (but not impressive) outlook:

Revenue FWD: 7,35% , EBITDA FWD: 9,99% , EPS FWD: 10,56%

I was a bit surprised, especially by the relatively modest growth outlook - not sure I would invest in a company or ETF with these numbers;-). Made me reflect that I may be biased towards mature companies and that I should look to add a little more growth with my next investment.

Do you use these kind of Portfolio averages? Which metrics do you follow and do you use it in your process?

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