Scottish Mortgage heading for where

[BullDog]

Keep an eye out for the next buying opportunity?

[Dod101]

SMT having a fun day today. -4.59% as of this minute. Wonder what has spooked people or just it got too frothy?

Wish I knew, down below £14 today. Anyway we all know it is a bit volatile.

Dod

They are still slightly above NAV but have just about lost the premium they had built up again. The Nasdaq is down another 2.4% today.
One should really talk about the price changes of their main holdings rather than of SMT as if it exists in a vacuum. Tesla, Meituan and Tencent all down sharply today. Apparently the US jobs figures were well below expectations today so that has pushed the market down, particularly tech shares.

OK I accept that. It has of course always been somewhat volatile but we forget that when it has had such a great run.

Dod

[unperplex]

Good buying opportunity though, if you have some spare cash…….

[Dod101]

Good buying opportunity though, if you have some spare cash…….

Maybe. Who knows? Could fall a lot further yet.

Dod

[UncleEbenezer]

Good buying opportunity though, if you have some spare cash…….

Maybe. Who knows? Could fall a lot further yet.

Dod

Maybe the buying opportunity will be around the end of the year.

Or something.

[chas49]

Moderator Message:
The discussion no longer seems to be anything to do with the topic originally posted! Perhaps it's time to take this elsewhere? I'll leave the topic open for on-topic replies. (chas49)

[thehaggistrap]

Would be good to keep this thread going.
Some interesting comments above!

Despite concerns over interest rates i believe SMT remains good place to put your money. Share price won't double as fast as it did recently. However Baillie Gifford are doing lots of things right.

I am personally not concerned about SMT having supposed "tech" focus when they are invested in so many diverse sectors (health, online shopping, electric cars). In reality technology is what drives innovation and growth in each and every sector. Companies working out how to do things differently / better are a good place to invest.

[Bouleversee]

My IWeb portfolios were up quite dramatically yesterday so I then logged on to my ii ISA and found that it was quite a bit down, against the market generally, the reason being that my two largest and most profitable holdings in that ISA by a long way, SMT and Next , had taken a tumble. I see SMT is further down today. Anyone know why? Is this a buying opportunity?

[Lootman]

My IWeb portfolios were up quite dramatically yesterday so I then logged on to my ii ISA and found that it was quite a bit down, against the market generally, the reason being that my two largest and most profitable holdings in that ISA by a long way, SMT and Next , had taken a tumble. I see SMT is further down today. Anyone know why? Is this a buying opportunity?

SMT is down because the high P/E US tech shares it invests in have been having a horrible 2022 so far, with the possible exception of Tesla.

Chinese internet shares have been doing badly for a few months now.

So I am actually surprised SMT is holding up as well as it is. The Cathy Woods ARK complex of funds, which invest similarly, have been a disaster with the flagship ARKK down 60% from its peak a year or so ago.

[Newroad]

Hi Boulervesee.

Looks an exacerbation of a trend (source Trustnet).



Looks (to my naked eye) around an 18% correction in price and 14% correction in NAV, as of yesterday, since it's early November high. Might have even moved from "correction" (in the -10% sense) to "crash" (-20%) after today's 3.25% fall appears in the data.

Regards, Newroad

[Bouleversee]

My IWeb portfolios were up quite dramatically yesterday so I then logged on to my ii ISA and found that it was quite a bit down, against the market generally, the reason being that my two largest and most profitable holdings in that ISA by a long way, SMT and Next , had taken a tumble. I see SMT is further down today. Anyone know why? Is this a buying opportunity?

SMT is down because the high P/E US tech shares it invests in have been having a horrible 2022 so far, with the possible exception of Tesla.

Chinese internet shares have been doing badly for a few months now.

So I am actually surprised SMT is holding up as well as it is. The Cathy Woods ARK complex of funds, which invest similarly, have been a disaster with the flagship ARKK down 60% from its peak a year or so ago.

I thought SMT was more diversified than that and they have sold quite a chunk of their Tesla. It looks as though their price is now back to the NAV. I shall hold on and whilst I am not planning any more purchases on my own account I will try to keep an eye on them and buy more for my children and grandchildren when the price has stopped falling. Yesterday there were several analysts advocating buy/hold but the no. on the MSN site which now pops up on my laptop when I seek a share price is now showing only 2 analysts making any recommendation. I'm still making a good profit for the length of time I have held and realise now that they are pretty volatile so maybe in future will start selling a few at the top and buying back later if I can find the time.

[absolutezero]

What is all the fuss about?

You buy an actively managed fund like SMT because you trust the manager to do the job for you and you think they can beat the index.
(Whether they can do that consistently is another matter but you pays your money and you takes your chance.)

If the price decline continues then the managers will probably address it - if they can work out why and can successfully redeploy your money elsewhere.

If you are going to obsess over share price movements or prices since peak or think it's not performing (or like me, suspect active fund management is a mug's game) then you should have just bought a global tracker.

Disclosure: I have a small amount in SMT and a few other actively managed funds.

[Bouleversee]

Who is obsessing? Who is making a fuss?

[nmdhqbc]

What is all the fuss about?

i don't see anyone making a fuss about it. nothing wrong with discussing a possible buying opportunity. not sure why that gets characterised like this. i'm sure if someone went through your posts they would find some twisted way of declaring your words as making a fuss about nothing. that would be very mean spirited.

[absolutezero]

Who is obsessing? Who is making a fuss?

Anyone looking for reasons about share price drops and worrying about it.

[absolutezero]

What is all the fuss about?

i don't see anyone making a fuss about it. nothing wrong with discussing a possible buying opportunity. not sure why that gets characterised like this. i'm sure if someone went through your posts they would find some twisted way of declaring your words as making a fuss about nothing. that would be very mean spirited.

I'm sure they could.

[nmdhqbc]

Who is obsessing? Who is making a fuss?

Anyone looking for reasons about share price drops and worrying about it.

no one is worrying. discussion is what these forums are for.

[Urbandreamer]

I thought SMT was more diversified than that and they have sold quite a chunk of their Tesla.

While they did sell a chunk of their Tesla holdings SMT is NOT well diversified. It's one of many called "high conviction".
It has 44% of assets in just 10 companies. Moderna is 10% of the assets.
https://www.bailliegifford.com/en/uk/in ... ent-trust/

It's great when it's heading north at a high rate. However we should expect that it may head south and possibly quite fast from time to time. This is why I sell when I regard it as being too large a part of my portfolio. It's not currently a small enough part of my portfolio for me to consider topping up.

I had great faith in Mr Anderson, but I'm happy with the team that remains.

[Bouleversee]

Who is obsessing? Who is making a fuss?

Anyone looking for reasons about share price drops and worrying about it.

Who said they were worrying? Certainly not me; just trying to keep informed in case I'd missed something. I have every confidence that the management, assuming that the new team does as well once the boss has departed, will manage my investment in foreign shares better than I could even if I had the time; otherwise I wouldn't have said I'd be buying more when the fall had stopped. The reason I won't be buying more for myself is because I am old and have already made so much that IHT is now a problem.

The object of a discussion board is to help people not belittle them. Go pour yourself a nice drink and wish yourself a happy and friendly new year from me.

[Bouleversee]

I thought SMT was more diversified than that and they have sold quite a chunk of their Tesla.

While they did sell a chunk of their Tesla holdings SMT is NOT well diversified. It's one of many called "high conviction".
It has 44% of assets in just 10 companies. Moderna is 10% of the assets.
https://www.bailliegifford.com/en/uk/in ... ent-trust/

It's great when it's heading north at a high rate. However we should expect that it may head south and possibly quite fast from time to time. This is why I sell when I regard it as being too large a part of my portfolio. It's not currently a small enough part of my portfolio for me to consider topping up.

I had great faith in Mr Anderson, but I'm happy with the team that remains.

Whilst SMT is the largest holding in my ii ISA, because it has done so well since I bought, it is a drop in the ocean of my total ISAs and p/fs so I don't need to worry about it being too large a part. I can see the advantage of having a much, much lower number of holdings as one can then manage them properly and I have no doubt that they will continue to reduce holdings when they have become disproportionate as a result of their success, though that can sometimes prove premature.

I ask questions because I make no claims to knowing all the answers and am always willing to learn.