The Lemon Fool

scrumpyjack wrote: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%?

Yes, that is not lost on me. In fact a Labour government might even align CGT rates with marginal income tax rates, which themselves could be raised.

So i was relieved when Corbyn was massacred last year as I was a sitting duck. Which leaves the question of whether I should bite the bullet and take the 20% hit while I can, which at the moment I perceive as being before 2024.

But don't let the tax tail wag the dog or whatever the expression is! My SMT holding is in an ISA so I have no concerns about CGT. Do what seems right from an investment perspective and pay whatever tax you need to (if any!) I have always worked on that basis and it is the way I look at IHT as well.

Common sense would suggest that it is probably a good idea to take some profit on SMT which is why I have been selling it from time to time this year.

Dod

Dod101 wrote:But don't let the tax tail wag the dog or whatever the expression is! My SMT holding is in an ISA so I have no concerns about CGT. Do what seems right from an investment perspective and pay whatever tax you need to (if any!) I have always worked on that basis and it is the way I look at IHT as well.

Common sense would suggest that it is probably a good idea to take some profit on SMT which is why I have been selling it from time to time this year.

I know what you mean. At the same time my SMT holding is maybe 2% of my total portfolio, and offers something very different from the rest of it. So i am inclined to let it ride for now.

I can easily see a short-term correction in these kinds of names. But look ahead 5 or 10 years and it seems to me like Amazon and Tesla might just conquer the world.

If you don't have sufficient losses to offset cgt incurred by selling some of your SMT, I think we can assume you know what you are doing and will ride out any bumps in the long term journey. I'm sticking with SmT as well. I have more confidence in their management of the relatively small amount I have invested with than my own judgement. Wish I had known about them earlieir

Bouleversee wrote:If you don't have sufficient losses to offset cgt incurred by selling some of your SMT, I think we can assume you know what you are doing and will ride out any bumps in the long term journey. I'm sticking with SmT as well. I have more confidence in their management of the relatively small amount I have invested with than my own judgement. Wish I had known about them earlieir

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i always thought they were a scottish mortgage outfit .

Bouleversee wrote:If you don't have sufficient losses to offset cgt incurred by selling some of your SMT, I think we can assume you know what you are doing and will ride out any bumps in the long term journey. I'm sticking with SmT as well. I have more confidence in their management of the relatively small amount I have invested with than my own judgement. Wish I had known about them earlieir

I have total confidence in the management of SM but even so, with my holding in an ISA I can sell some without any concern about CGT. That is a great feeling. I appreciate that you were not addressing me, by the way! I will certainly keep SMT for the long term but feel happier taking some profits from time to time. I must have held it for at least 20 years and it has not always been like this!

Dod

jackdaww wrote:i always thought they were a scottish mortgage outfit .

That's what my wife thought when I talked about putting some in the kids JISA's a couple of years ago.
It's done quite well for them. Far better than CTY (which I picked to cover the account charges).

Urbandreamer wrote:

jackdaww wrote:i always thought they were a scottish mortgage outfit .

That's what my wife thought when I talked about putting some in the kids JISA's a couple of years ago. It's done quite well for them. Far better than CTY (which I picked to cover the account charges).

If you went purely by the name nobody would ever buy Scottish Mortgage. It sounds dreary and ponderous like something designed only for widows and orphans. I used to be prejudiced against any investment trust that had words like "mortgage", "empire" or even "Scottish" in the name, considering them to be archaic and stodgy.

Not any more, although giving it a more racy name might boost its price by a few more points

Isn't the current SMT story that it's invested in growth themes that have themselves been much-accelerated by covid? Thus the underlying holdings are adjusting to a world where a higher proportion of our lives has moved permanently online.

Of course the extreme conditions of lockdown won't persist. But commuting and business travel will move to long-term lower levels, and there'll be a portion of the affluent oldie market who've been pushed into overcoming technophobia.

Urbandreamer wrote:

jackdaww wrote:i always thought they were a scottish mortgage outfit .

That's what my wife thought when I talked about putting some in the kids JISA's a couple of years ago.
It's done quite well for them. Far better than CTY (which I picked to cover the account charges).

Yes, indeed. I wonder is it worse for SMT's stable mate - Monks?! Perhaps favoured by those who like Benedictine!

Dod101 wrote: I must have held it for at least 20 years and it has not always been like this!
Dod

Interesting comment. Do you have any idea what caused the change, e.g. new management, move into PE, etc? What did it used to be like?

Like Dod I've been a long term investor in Scottish Mortgage. I started a little later in the early 2000's when I opened an account directly with Baillie Gifford. At the time Scottish Mortgage was seen as solid and dependable, low cost and their savings scheme didn't have any dealing charges which made a big difference on small monthly contributions. It's been quite a ride and a lot of luck in picking Scottish Mortgage from the many options available. F&C was a much bigger and well known trust at the time.

I also find fascinating the current perception of SMT as a risky high tech fund as I still anchor back to it being a solid core holding. That said, I am starting to look at reducing my holding as it's my largest as well.

This recent article gives a potted history of SMT...

"itinvestor.co.uk/2020/05/scottish-mortgage-the-biggest-and-the-best/"

Unfortunately I'm not approved to post links but a quick search should find the article.

bluedonkey wrote:

Dod101 wrote: I must have held it for at least 20 years and it has not always been like this!
Dod

Interesting comment. Do you have any idea what caused the change, e.g. new management, move into PE, etc? What did it used to be like?

I do not know when James Anderson took over Scottish Mortgage but it was about then that the change happened. He is a most unusual and perceptive character and as he is now about 60, I hope that Tom Slater is similar. They do not follow any index and simply do what they feel will be best. At one time it was considerably more volatile than now but, as it were 'got there in the end'. I remember some years back that they were a good but not great performer, similar in fact to the old British Empire IT when it was doing pretty well. BE was much steadier though.

Dod

Lootman wrote:

Urbandreamer wrote:

jackdaww wrote:i always thought they were a scottish mortgage outfit .

That's what my wife thought when I talked about putting some in the kids JISA's a couple of years ago. It's done quite well for them. Far better than CTY (which I picked to cover the account charges).

If you went purely by the name nobody would ever buy Scottish Mortgage. It sounds dreary and ponderous like something designed only for widows and orphans. I used to be prejudiced against any investment trust that had words like "mortgage", "empire" or even "Scottish" in the name, considering them to be archaic and stodgy.

Not any more, although giving it a more racy name might boost its price by a few more points

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so what do we think of the name "monks" also run by baillie gifford on similar lines to smt ?



NB. sorry , missed the earlier post.

Interestin article about Baillie Gifford backing a 'flying Tesla'
https://www.telegraph.co.uk/business/20 ... transport/

Presumably via SMT. Only a small investment though

Yes, they have that one but I think they're also invested in this one:-

www.jobyaviation.com/

Well on today's rise I sold a third of my SMT stake, bringing it down to the same levels of holding as Fundsmith and Monks, both bought at the same time with the same amount. I have kept my powder dry on Amazon as I cannot make my mind up what to do about that one
It's an interesting time.....
MM

Tesla shares rose another 12% today to 1,733
Do SMT have a policy about not having more than a certain percent in any one share? Tesla must be nearing 15% of SMT. They were over 11% before the recent upsurge

I have no idea scrumpjack but I am very happy with the share price increase in SMT, having long since extracted my original investment and in any case, my holding is in an ISA. As of this evening it is still more than my holding was worth on 31 December 2019, having sold three times since then, at more than 10% of my then holding each time.

Amazing.

Dod

Dod101 wrote:I have no idea scrumpjack but I am very happy with the share price increase in SMT, having long since extracted my original investment and in any case, my holding is in an ISA. As of this evening it is still more than my holding was worth on 31 December 2019, having sold three times since then, at more than 10% of my then holding each time.

Amazing.

Dod

I am in a similar position, but keep thinking 'trees don't grow to the sky' as someone once said....