Want to grow your wealth by investing in the best companies? Terry Smith’s incredible book Investing for Growth reveals how Here are the 15 key takeaways from the book:

1. Buy and Hold Smith believes in buying and holding great companies. Not for months, but for decades. Time in the market beats timing the market.

2. How to find winners What makes a great company? High returns on capital, strong market position, predictable earnings, and great products.

3. Beware of Reinvestments Avoid businesses that require constant reinvestment just to maintain their position. They rarely compound wealth over time.

4. Valuation vs. Quality Many investors focus too much on valuation. Smith argues that quality companies often justify high prices.

5. Timing is Useless Market timing is a fool’s game. Even professionals get it wrong. Instead, focus on buying and holding winners.

6. Growth Justifies Price A great company is still a bad investment if you overpay. But the best businesses often grow into their valuation.

7. Avoid High Fees Smith criticizes fund managers who charge high fees while underperforming the market. He prefers low-cost, high-quality investing.

8. Dividends Dividends matter! Companies with consistent free cash flow can reward investors over time.

9. Avoid Over-Diversification He warns against over-diversification. Holding too many stocks dilutes returns and reduces focus.

10. Ignore Market Hype Avoid hype and speculation. Smith stays away from companies that rely on accounting tricks or unsustainable growth.

11. ETFs Aren’t Perfect Be skeptical of ETFs and passive funds. They often include low-quality businesses that drag down returns.

12. Forget Predictions Don’t invest based on macro predictions. Most forecasts are wrong. Instead, focus on timeless business principles.

13. Patience Wins The key to long-term success? Discipline, patience, and owning great businesses. The rest is noise.

14. Let Compounding Work Want to invest like Terry Smith? Buy high-quality companies, hold them for decades, and let compounding do the work.

That's it for today. Do you want more? You can read his latest annual letters to shareholders for free here: