The Lemon Fool

Urbandreamer wrote:

DavidM13 wrote:I was getting nervous as SMT started in mid-March as 24% of my pension and due to stellar performance was 33% this morning. I chopped it down to 22%.

Mr Anderson was asked about diversification in a recent QA. He said that investors should consider their position and not hold too much SMT. That few have more than 10% and very few more than 20%.

FWIW it's 10% of my directly administered portfolio. Very happy with them and won't be selling until it's more like 20%.

Hurrah, I am one of the (self) chosen few! In seriousness, thanks for the note, that is interesting.

Dod101 wrote:

bluedonkey wrote:Might be a coincidence but the slight price dip mid-day appears to coincide with the time of your sale. I guess when you put through a £1m trade, it's bound to have an effect.

Alas it was but a fraction of that but I did seem to get about the best price for the day, so far anyway....

That £1m order was the SETS intraday auction and if you placed your order at midday then yes, it would indeed have been a part of that deal...

Intraday midday Auction – Every day from 12:00 to 12:02 (Can run until 12:16 if the stock moves a certain percentage during the initial auction)

https://help.ii.co.uk/system/templates/ ... ewContext=

DavidM13 wrote:

bluedonkey wrote:Dod,
Might be a coincidence but the slight price dip mid-day appears to coincide with the time of your sale. I guess when you put through a £1m trade, it's bound to have an effect.
BD

That was me ha ha! (well a tiny fraction of that was me!)
I was getting nervous as SMT started in mid-March as 24% of my pension and due to stellar performance was 33% this morning. I chopped it down to 22%. It really is something else but surely surely surely it cant keep heading North forever! Got to hand it to them though they are doing something right.

Now I need to work out what to invest in with this 10% of my pot or so. Got UK Small Companies x2, Got Private Equity, Got Global got UK, Got European and Got Asia. So probably pick another player in one of those areas unless anyone has any bright ideas.

==================================

america VUSA USA

Renewables TRIG JLEN BSIF .

jackdaww wrote:

DavidM13 wrote:

bluedonkey wrote:Dod,
Might be a coincidence but the slight price dip mid-day appears to coincide with the time of your sale. I guess when you put through a £1m trade, it's bound to have an effect.
BD

That was me ha ha! (well a tiny fraction of that was me!)
I was getting nervous as SMT started in mid-March as 24% of my pension and due to stellar performance was 33% this morning. I chopped it down to 22%. It really is something else but surely surely surely it cant keep heading North forever! Got to hand it to them though they are doing something right.

Now I need to work out what to invest in with this 10% of my pot or so. Got UK Small Companies x2, Got Private Equity, Got Global got UK, Got European and Got Asia. So probably pick another player in one of those areas unless anyone has any bright ideas.

==================================

america VUSA USA

Renewables TRIG JLEN BSIF .

Thanks
I am genetically programmed not to invest in a tracker but you are quite right I should be considering alternatives. Problem is I am also programmed not to pay premiums and those bad boys are on double digit premiums! ( I realise of course some of that is due to NAV reporting lags). The search for a new investment continues

Urbandreamer wrote:

DavidM13 wrote:I was getting nervous as SMT started in mid-March as 24% of my pension and due to stellar performance was 33% this morning. I chopped it down to 22%.

Mr Anderson was asked about diversification in a recent QA. He said that investors should consider their position and not hold too much SMT. That few have more than 10% and very few more than 20%.

FWIW it's 10% of my directly administered portfolio. Very happy with them and won't be selling until it's more like 20%.

In my total portfolio, SMT is now about 7.5% which I think is still high. On balance I should probably have cut it back a bit more but we'll see how it goes. I most certainly will not let it get to more than 10%. That would certainly be my definition of too much

Dod

Hmm. 15% today for me, still as you said it as got 85 companies it is invested in, so that 15% is reasonable spread! Maybe I should get that new Tesla 3 now?

About 3% for me.

Hmmm it seems SMT is now very top heavy in my SIPP, although about 12% of overall, time to adjust I feel. Still mulling over selling some Amazon holdings, but every time I look at it it has gone up a few more percentage points .

MM

bluedonkey wrote:About 3% for me.

Plus about 5% in the main Fundsmith OEIC.

We will all do as we feel is right but clearly the sort of increase we have been seeing cannot go on for ever. I have been caught out with this sort of thing in the past and do not intend to be caught again. Comfort yourself with the thought of 85 holdings in SMT, but it is only two or three of those which are driving the SMT price and if those reverse............

But it is not even that for me; it is just that whilst unlike say TJH I do not have any formal rules, I do apparently have mental guides! I do not need to accumulate capital but I would be happy to supplement my dividend income which is why I hold SMT in the first place.

Dod

@Dod, I think one big test will be q2 earnings coming out soon. If tesla, amazon, Netflix post disappointing results, then investors may wake up that many of these companies are money losers and cash burners, and the earnings targets are fantasy. But until then investors will continue to poor money in to get market beating returns, like with the dot com boom. Also now we have etfs and funds weigh their products by market cap so will continue to invest largest sums in big tech names irrespective of earnings. Time will tell.

Some of the underlying forward PEs are looking to defy gravity.

My last to up in SMT was on 21/10/2014, I have set a market order which will sell that exact tranche, if it triggers, at a profit of £7.20 a share net of all costs. It would leave me with a large enough holding.

This sizeable cash, if released, might not go back in the market. I am currently assisting one of our daughters in the negotiating of the takeover of the whole of her neighbour's business, in which I will have a stake, I might add that to my stake instead(there is an IHT planning dimension).

Bagger

PS I hold very few collectives overall, generally preferring direct stakes, but I do hold two ETFs, EQQQ(NASDAQ) and IPSY(I like the theme in investing terms). Both have benefited from current conditions, but I trimmed EQQQ last week, and topped up FOUR, one of my long term winners in current setback. ISPY is a relatively newer and much smaller holding. It can just chug along.

Bagger46 wrote:..but I do hold two ETFs, EQQQ(NASDAQ) and IPSY(I like the theme in investing terms).

What?!? Glam bags?
https://www.investopedia.com/articles/personal-finance/020316/ipsy-review-it-worth-it.asp

torata

torata wrote:

Bagger46 wrote:..but I do hold two ETFs, EQQQ(NASDAQ) and IPSY(I like the theme in investing terms).

What?!? Glam bags?
https://www.investopedia.com/articles/personal-finance/020316/ipsy-review-it-worth-it.asp

torata

Not quite, that one is not my scene, good try.

I refer of course to the L&G Cyber Security ETF. First bought last year, one top up in March. I think that one has a bright future looking a bit down the road , a few of us have bought into it. It avoids a bit of detailed research. Not that keen on ETFs usually myself, but those two suit my purpose.

Bagger

PS I amended the market order slightly after posting so it triggered and that slice is on its way to being cash. My holding in SMT was just getting too large.

Bagger46 wrote:

torata wrote:

Bagger46 wrote:..but I do hold two ETFs, EQQQ(NASDAQ) and IPSY(I like the theme in investing terms).

What?!? Glam bags?
https://www.investopedia.com/articles/personal-finance/020316/ipsy-review-it-worth-it.asp

torata

Not quite, that one is not my scene, good try.

I refer of course to the L&G Cyber Security ETF.

Ahh, you meant ISPY. Nice epic. (And USPY for the US$ class...) https://fundcentres.lgim.com/srp/lit/76 ... dience.pdf

I decided to cap my SMT holding at 10% of my total portfolio and I have sold three tranches over the Covid period when the holding have breached 11%.

As an alternative, I have been buying the IITU ETF (IShares S&P Tech).

A few reasons, the ETF has Microsoft exposure 22% (which to me is a clear winner in all of this given the number of corporate investing in Microsoft Teams etc alone), has no Tesla exposure and costs at 15bps pa.

I am a great supporter of SMT, but want to control the downside.....

Seems my negatively on SMT has been ignored by the markets again. SMT up 1.25% today. It goes up a percent or two most days (since March)! Enjoy the rise whilst it lasts!

fca2019 wrote:Seems my negatively on SMT has been ignored by the markets again. SMT up 1.25% today. It goes up a percent or two most days (since March)! Enjoy the rise whilst it lasts!

reminds me of LTI....

monabri wrote:

fca2019 wrote:Seems my negatively on SMT has been ignored by the markets again. SMT up 1.25% today. It goes up a percent or two most days (since March)! Enjoy the rise whilst it lasts!

reminds me of LTI....

Not really the same animal though. LTI's share price rise (and later fall) was predicated on changes in the valuation of its 25% equity holding in the private parent fund management company.

SMT does have some unquoted holdings as well but that is not what is driving the recent out-performance. As long as Amazon, Tesla, Ali Baba, Tencent etc. continue their good run then so will SMT.

And SMT is on a much smaller premium to NAV than LTI was a year ago.

Anyway I hold both and they are my best-performing ITs over the last dozen or so years by quite a margin. Really can't complain, except that both are in my taxable account so to sell either would invoke a big dollop of capital gains tax.

It is possible that CGT on share disposals could be increased to align with the property CGT rate, so there may be an argument for gritting your teeth and realising the SMT gain whilst the rate is 20%?