Consistently timing the market is impossible

Terry Smith manages the Fundsmith Equity fund, which is the largest unit trust in the UK. Smith’s strategy of investing in only a few, high quality companies for the long term has been highly successful. But there is one thing he refuses to try to do: “There are two types of people when it comes to market timing,” says Smith. “Those who can’t do it, and those who know they can’t do it. And I know that I can’t do it.”