Terry Smith, sometimes called the English Warren Buffett, built his reputation on a simple mantra: Buy good companies, don't overpay, do nothing. This quality investing approach—long-term ownership of highly profitable firms with solid balance sheets—delivered strong returns for years.

But this month, Smith shocked investors by churning half of his portfolio, abandoning his hallmark patience. In his latest letter, he warned there would be little point being proved right about the dangers of passive or momentum investment after our fund has closed, acknowledging heavy client redemptions. Unlike Buffett, whose permanent capital lets him wait out downturns, Smith faces withdrawals that force action.

The move raises a critical question: Will we look back and conclude that Smith's move marked the top for chasing hot stocks and a turning point for his style of quality investing? If so, the strategy he championed may be due for a comeback just as he abandons it.