I always read Smith’s annual letters—they’re rare examples of plain-spoken investment thinking. This year, three things stood out:
- He expects weight-loss drugs to reshape consumer spending, particularly reducing alcohol consumption and potentially becoming tools in treating alcoholism.
- He remains bullish on tobacco harm reduction. Not necessarily a surprise, but worth noting for its consistency.
- Most interestingly, he argues that passive investing via index funds “is in fact a momentum strategy”—an underappreciated point.
Read the full letter here.