Lyft is mentioned as struggling to compete in the ride-sharing ecosystem due to Uber's dominant market share and scale.
Source Post
Terry Smith Bets: Why Fundsmith Sold Visa to Buy Uber
Sep 23, 2026
This analysis delves into Terry Smith's surprising investment in Uber (UBER), a departure from his usual high-quality, cash-generating company strategy. The report examines the structural aspects of Uber's cash flows, the overlooked threat of autonomous vehicles, and the reasons behind institutional investors' renewed interest in the company, despite its past financial performance and recent stock price volatility. The analysis relies on institutional research, earnings call transcripts, and Fundsmith's 13F filing.
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Tesla's Cybertruck unveiling is mentioned as part of the narrative that autonomous vehicle companies might bypass Uber.
DoorDash is mentioned as a competitor to Uber, trading at a significantly higher valuation multiple (25.2x EV/EBITDA) compared to Uber's 13.5x, highlighting Uber's relative undervaluation.
Fundsmith initiated smaller positions in Netflix.
Fundsmith initiated smaller positions in Mastercard.
Fundsmith significantly reduced its long-term core positions in Alphabet.
Terry Smith's Fundsmith sold its stake in Visa, described as a reliable asset that consistently grew wealth, to reallocate capital towards its new investment in Uber.
Terry Smith's Fundsmith significantly reduced its stake in Alphabet to fund the new investment in Uber, indicating a shift in capital allocation away from Alphabet.
Terry Smith's Fundsmith initiated a significant new position in Uber (UBER), representing 4.73% of its portfolio and becoming a top five holding, signaling a strong conviction despite Uber's past financial issues and recent stock volatility.
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Tracked calls opened from this post
UBERbuy opened Sep 23, 2026
-7.14%