Top 5 Stock Picks of Terry Smith’s Fundsmith LLP

4. Intuit Inc. (NASDAQ:INTU)

Fundsmith LLP Stake Value: $2.25 billion

Percentage of Fundsmith LLP’s 13F Portfolio: 6.22%

No. of Hedge Fund Holders: 66

Ranked fourth on our list of top 10 stock picks of Terry Smith’s Fundsmith LLP is Intuit Inc. (NASDAQ:INTU). The company, headquartered in Mountain View, California, creates and sells financial management software solutions. It has a market cap of $142.7 billion. Our data shows that Fundsmith LLP is one of the biggest stakeholders in Intuit Inc. (NASDAQ: INTU) with 4.6 million shares worth $2 billion.

Smith’s Fundsmith LLP increased stake in Intuit Inc. (NASDAQ:INTU) by 1% during the second quarter of 2021 compared to the first quarter. At the end of the second quarter of 2021, 66 hedge funds in the database of Insider Monkey held stakes worth $5 billion in Intuit Inc. (NASDAQ:INTU), down from 68 the preceding quarter worth $4.7 billion.

In the fourth fiscal quarter, Intuit Inc. (NASDAQ:INTU) reported an EPS of $1.87, beating estimates by $0.38. The company’s revenue in the fourth fiscal quarter came in at $2.56 billion, an increase 40.7% year over year, and beat revenue estimates by $240 million.

Qualivian Investment Partners, an investment management firm, published its Q2 2021 investor letter and mentioned Intuit Inc. (NASDAQ:INTU). Here is what Qualivian Investment Partners has to say about the company:

“The Thesis in a Nutshell

Intuit is an attractive combination of:

• attractive economics,
• a wide moat, especially via the development of a connected ecosystem/digital platform that locks stakeholders in, and
• strong growth in core markets supplemented by geographic global expansion, as well as,
• a shareholder-oriented management team.

It is a quality compounder. At the right price it is a clear buy.

What Intuit Does

Intuit dominates the small and medium business (SMB) accounting software category as well as the doit-yourself (DIY) tax preparation software market. Intuit has three key businesses:

• Software for financial and business management (QuickBooks) as well as integrated payroll solutions, merchant payment processing solutions, and financing for small businesses in the US and key global markets;
• Do‑it‑yourself and assisted income tax preparation software products (TurboTax) and services sold in the US and Canada; and
• FinTech Apps (Mint and now Credit Karma) that provide users the ability to integrate and monitor their financial lives in one platform, while allowing them to shop for financial service products (credit cards, mortgages, auto loans, and insurance products)…” (Click here to see the full text)