terry-smith

What problem does it solve?

This Skill helps you evaluate investments using Terry Smith’s Fundsmith-style framework so you can separate business quality from stock price noise.

Core Features & Use Cases

• Quality screening with hard thresholds: Uses metrics like ROCE, gross margin, operating margin, cash conversion, leverage, and interest cover to decide whether a business is worth examining.
• Competitive advantage assessment: Checks pricing power, customer stickiness, scale benefits, brand moat, and structural durability to judge whether the advantage can persist.
• Valuation and “do nothing” discipline: Tests whether the price is reasonable for the quality and enforces low-turnover holding behavior—selling only when the business changes or quality/valuation breaks the thesis.

Use it to analyze a stock idea for long-term compounding (e.g., “Is this company investable as a 10-year owner?”), to decide whether to add after a drawdown, and to sanity-check whether you’re paying for business performance or multiple expansion.

Quick Start

Ask: “Using Terry Smith’s framework, assess whether [ticker/company] is a good company to buy long-term; include the ROCE/margins/cash conversion checks, competitive advantage test, valuation reasonableness, and a clear buy/hold/sell conclusion with what would make you change your mind.”