INVESTING FOR GROWTH

"Investing for Growth" by Terry Smith offers a refreshing take on successful investing, rejecting unnecessary complexities and emphasizing a straightforward approach: buy good companies, avoid overpaying, and then do nothing. In this anthology of essays and letters spanning the decade from 2010 to 2020, Smith, a prominent fund manager, dismantles common myths surrounding investing while passionately advocating for the strategy of investing in the world's best companies.

The book centers on identifying businesses that consistently generate substantial cash flow and effectively deploy it. Smith argues that these high-quality companies, with a proven track record of resilience through major historical events like the Great Depression and two world wars, offer a compelling case for long-term investment. With his trademark wit, Smith not only demystifies the qualities of these top-tier companies but also provides practical advice on spotting impostors.

The narrative goes beyond conventional investment wisdom, addressing topics such as the abuse of the English language by companies, the often deceptive nature of share buybacks, and the hidden risks associated with ETFs. Smith also delves into environmental, social, and governance (ESG) investing, revealing potential pitfalls that may compromise the ethical and green aspirations of investors.

Backed by Smith's analytical rigor, honed in his earlier work "Accounting for Growth" (1992), "Investing for Growth" is both enjoyable and enlightening. It covers essential investment principles, including Smith's ten golden rules, making it a valuable resource for both novice and seasoned investors. The book stands out as a treasure trove of practical insights, ensuring that no investor's bookshelf is complete without this compelling guide to navigating the complexities of the investment world.

From the Back Cover

Some people love to make successful investing seem more complicated than it really is. In this anthology of essays and letters written between 2010–20, leading fund manager Terry Smith delights in debunking the many myths of investing – and making the case for simply buying the best companies in the world.

These are businesses that generate serious amounts of cash and know what to do with it. The result is a powerful compounding of returns that is almost impossible to beat. Even better, they aren’t going anywhere. Most have survived the Great Depression and two world wars.

With his trademark razor-sharp wit, Smith not only reveals what these high-quality companies really look like and where to find them (as well as how to discover impostors), but also:

-why you should avoid companies that abuse the English language
-how most share buybacks actually destroy value
-what investors can learn from the Tour de France
-why ETFs are much riskier than most realise
-how ESG investors often end up with investments that are far from green or ethical
-his ten golden rules for investment
-and much, much more.

Backed up by the analytical rigour that made his name with the cult classic, Accounting for Growth (1992), the result is a hugely enjoyable and eye-opening tour through some of the most important topics in the world of investing – as well as a treasure trove of practical insights on how to make your money work for you.

No investor’s bookshelf is complete without it.

About the Author

TERRY SMITH:

Terry Smith became a stockbroker with W. Greenwell & Co in 1984 and was the top-rated bank analyst in London from 1984 to 1989. In 1990 he became head of UK company research at UBS Phillips & Drew, a position from which he was dismissed in 1992 following the publication of his bestselling book Accounting for Growth.

He went on to build two broking businesses, Collins Stewart and Tullett Prebon, from where he retired in 2014 to concentrate on his new fund management venture, Fundsmith.