“Britain’s Warren Buffett” Pared Down Every Single Stock in His Nearly $13 Billion Portfolio in the First Quarter, With One Exception

Key Points

• With Warren Buffett retiring as Berkshire Hathaway’s CEO on Dec. 31, all eyes are now on Fundsmith’s billionaire investor, Terry Smith (a.k.a. Britain’s Warren Buffett).

• Smith pared down or exited all 37 positions held by Fundsmith between the end of December and the end of March.

• The lone stock Smith added to his investment portfolio is historically inexpensive, compared to where it’s traded over the last five years.

• 10 stocks we like better than Badger Meter ›

Although earnings season often garners all the glory, the quarterly filing of Form 13Fs with regulators can be just as insightful for investors. A 13F allows investors to track which stocks Wall Street’s savviest money managers (with more than $100 million in assets under management) have been buying and selling.

For as far back as the eye can see, mapping billionaire Warren Buffett’s trades at Berkshire Hathaway was the pinnacle of 13F season. But with the Oracle of Omaha retiring as CEO on Dec. 31, 2025, it’s “Britain’s Warren Buffett,” billionaire Terry Smith of Fundsmith, who now earns the attention.

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Smith and Buffett are alike in their unwavering quest for value and unwillingness to chase or hold pricey stocks. During the March-ended quarter, Terry Smith was a decisive seller of equities — and for good reason. However, one stock definitely caught his attention.

Britain’s Warren Buffett pared down every stock in Fundsmith’s portfolio

When 2025 came to a close, Smith was overseeing $17.1 billion in assets spread across 37 holdings. During the first quarter, he completely exited four of these positions and pared down the remaining 33. This includes several members of the “Magnificent Seven”, Dow Jones Industrial Average components, and an array of healthcare stocks.

This selling likely reflects the historical priciness of the stock market. The S&P 500‘s (SNPINDEX: ^GSPC) Shiller Price-to-Earnings (P/E) Ratio entered the year at its second-priciest multiple since January 1871, and has only proceeded to become more expensive. The risk-versus-reward profile simply isn’t favorable.

Shiller PE Ratio is now just 3.5% away from passing the Dot Com Bubble as the most expensive stock market valuation in history 🚨🚨🚨 pic.twitter.com/1ceOa3yhfs

— Barchart (@Barchart) June 1, 2026

Additionally, Shiller P/E Ratios above 30 have historically been followed by declines in the S&P 500 (and other major Wall Street stock indexes) of 20% or greater.

Despite having a buy-and-hold philosophy like Warren Buffett, Terry Smith is struggling to find a good deal… with one exception.

Image source: Getty Images.

This is the only stock Fundsmith’s billionaire boss has purchased in 2026

The one new addition to Fundsmith’s more than $12.8 billion investment portfolio in the first quarter was measurement and communications solutions provider Badger Meter (NYSE: BMI). Smith picked up 142,491 shares, worth $21.7 million at the end of March.

While investors trip over themselves to buy the hottest artificial intelligence stocks, billionaire Terry Smith is grabbing his share of a company poised to benefit from long-term water utility infrastructure upgrades. Badger Meter provides advanced metering infrastructure that aids with everything from flow measurement to leak detection.

Badger Meter also offers advanced metering analytics through its cloud-based software-as-a-service platform, Beacon. These digital end-user analytics provide the company with a recurring revenue stream that delivers higher margins than those generated by traditional meters and valves.

Badger Meter stock has never been particularly “cheap,” based on traditional measures, such as the P/E ratio. But at its current forward P/E ratio of 28, it’s trading at a 33% discount to its trailing five-year average. When coupled with the company’s competitive edge in water technology innovation, Britain’s Warren Buffett apparently couldn’t resist.

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Sean Williams has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.