The “English Warren Buffett” Dumped Most of His Portfolio, But Bought Big Into These 3 Stocks

British billionaire investor Terry Smith is known as “the English Warren Buffett.” His London-based investment management firm, Fundsmith, was founded in 2010 and is known for Smith’s disciplined, long-term approach to investing.

Smith focuses on high-quality, global companies with sustainable competitive advantages, echoing Buffett’s value investing philosophy, but with a heavier tech tilt. His flagship Fundsmith Equity Fund has over $20.4 billion in assets under management (AUM), typically concentrating on a portfolio of 20 to 30 stocks. 

Since its inception, the fund has delivered a remarkable 590% cumulative return, or 14.2% annually, outpacing the MSCI World Index’s 391%, or 11.5% annually. Smith’s strategy — buy good companies, don’t overpay, and hold long-term — has fueled this success, making Fundsmith the UK’s largest retail equity fund. 

In the first quarter of 2025, Smith either sold down or sold off most of his existing portfolio. While he did initiate two new holdings, and added to a handful more, three stocks in particular received the greatest attention from the billionaire. They’re not the biggest positions in Fundsmith, but Smith increased his stake in them by 60% or more.

Texas Instruments (TXN)

Texas Instruments (NYSE:TXN) was one of the stocks Smith boosted his holdings in, increasing his position from 1.7 million shares to 2.73 million shares, a 60% rise and representing 2.2% of the total.

TXN is a leading analog and embedded semiconductor maker, poised for robust growth in 2025, driven by recovering markets and strategic investments. First-quarter revenue rose 11% to $4.07 billion, with earnings of $1.28 per share easily beating estimates of $1.06 per share. The gains were fueled by an across-the-board improvement in its business except personal electronics.

Texas Instruments pays a quarterly dividend of $1.36 that currently yields 2.8%. It has raised the payout for 21 consecutive years and is closing in on becoming a Dividend Aristocrat. With a 10-year, 15% compound annual growth rate (CAGR) and $1.7 billion in trailing free cash flow, TXN the dividend seems sustainable. 

Growth levers for the chipmaker include an $18 billion fab expansion in Sherman, Tex., targeting 300mm wafer production by 2026, and a 15% increase in automotive chip content for EVs. Analysts project 10% revenue growth to $17.3 billion in 2025, and a $179 per share one-year price target, implying 6% downside. 

Risks to TXN include the impact of tariffs, though the semiconductor industry currently remains exempt, and cyclical industry demand, but its diversified portfolio helps mitigates these. Texas Instruments’ market recovery and innovation make its stock a top pick.

Doximity (DOCS)

Doximity (NYSE:DOCS) is the leading digital platform for U.S. medical professionals and should see continued growth in 2025, driven by artificial intelligence innovation and record user engagement. Smith increased his holdings 67% to 1.19 million shares, or 1.2% of the portfolio.

Its recently released fiscal fourth-quarter earnings showed revenue reached $138.3 million, up 17% year-over-year, with full-year revenue of $570.4 million, a 20% increase. Last quarter, over 610,000 unique providers used its AI, telehealth, and workflow tools, with Doximity GPT generating over 1 million prompts, enhancing physician efficiency.

Growth levers include expanding its AI-driven tools, like personalized newsfeeds and scheduling solutions, and acquisitions like Curative Talent to bolster hiring services.

Fiscal 2026 guidance projects $619 million to $631 million in revenue, indicating 10% growth, but slightly below estimates, reflecting cautious optimism amid economic uncertainty. Risks  facing Doximity include market saturation and regulatory pressures, but Doximity’s 90.2% gross margins and $266.7 million free cash flow ensure it can stand strong DOCS’ $18.5 billion addressable market fuels long-term potential.

Zoetis (ZTS)

The last stock Smith bought more of was Zoetis (NYSE:ZTS), increasing his holdings in the animal health company by 1,020%, growing ZTS from just 227,000 shares to 2.55 million. However, that only put the global leader in animal health at just under 2% of the portfolio.

Zoetis is set for strong growth in 2025, driven by its innovative portfolio and expanding market demand. First-quarter revenue reached $2.2 billion, up 1% year-over-year. Organic operational growth, however, rose 9% from last year organically, with net income of $662 million, or $1.48 per share. The companion animal segment, led by Simparica Trio and osteoarthritis drugs Librela and Solensia, grew 9% organically, while livestock products suffered a 5% decline.

Zoetis raised its 2025 revenue guidance to $9.4 billion to $9.6 billion (for 6% or 8% organic growth) and adjusted earnings of $6.20 to $6.30 per share, reflecting a weak U.S. dollar, but strong global pet care trends. Among its growth levers are new Simparica Trio indications, digital cytology expansion, and a $350 million medicated feed divestiture plan to sharpen its focus on high-margin products.

Although, like everyone else, risks such as tariffs persist, animal healthcare tends to be recession resistant, and Zoetis’ diversified portfolio, plus13% key franchise growth, ensure its resilience, making ZTS stock a top pick.