Fundsmith's Q3 2025 portfolio shows a strategic rebalancing, with its overall value decreasing to $19.8 billion and the number of holdings consolidating from 39 to 35. The fund maintained significant allocations in core assets such as Stryker, IDEXX, Alphabet, Microsoft, and Visa, which continue to form the backbone of its investment strategy. This reflects a persistent focus on established, high-quality companies, even as market dynamics prompt some tactical adjustments.
Amidst these changes, Fundsmith strategically augmented its positions in several promising companies, indicating a refined outlook on specific sectors. Notable increases were observed in Waters Corp, Zoetis, Intuit, and Napco Security, signaling confidence in their future growth prospects. Conversely, the fund divested from numerous smaller holdings, streamlining its portfolio. Significant stake reductions were enacted in major technology firms like Microsoft, Meta Platforms, and Alphabet, as well as in Philip Morris, suggesting a move to capitalize on prior gains and reduce exposure to certain high-valuation tech assets.
Ultimately, Fundsmith’s investment philosophy remains centered on long-term growth and high-quality enterprises, despite these recent shifts. The fund’s concentrated approach continues to prioritize robust companies that demonstrate sustainable competitive advantages. These strategic adjustments across technology, healthcare, and consumer sectors underscore a dynamic yet disciplined effort to optimize returns and manage risk in an evolving market environment, while still adhering to its foundational principles of investing in businesses with enduring value.
This careful and deliberate approach to portfolio management, characterized by a commitment to quality and thoughtful rebalancing, demonstrates a proactive stance in navigating market fluctuations. It reflects a dedication to continuous improvement and a belief in the power of strategic foresight to achieve sustained success and inspire confidence in long-term investment goals.
