Scottish Mortgage heading for where

[unperplex]

An important point is of course that it is not an “individual” share but a collective and the risk (which I acknowledge is there) is spread.

[scrumpyjack]

I see in today's Torygraph, they comment on the reduction in the Tesla holding by SMT and that one of the managers' criteria for assessing each share they hold is that they can see it increasing by 2 and half times in the next 5 years. They felt Tesla had become so highly valued that it was less likely to meet that criterion.

I would be happy for SMT to increase by 'only' 2 and a half times in the next 5 years - mustn't be greedy!

[bluedonkey]

I see in today's Torygraph, they comment on the reduction in the Tesla holding by SMT and that one of the managers' criteria for assessing each share they hold is that they can see it increasing by 2 and half times in the next 5 years. They felt Tesla had become so highly valued that it was less likely to meet that criterion.

I would be happy for SMT to increase by 'only' 2 and a half times in the next 5 years - mustn't be greedy!

20% per year for 5 years = 2.5 times.

[bluedonkey]

Glad to see SMT management actively changing their Tesla % holding. That's what active managers should do instead of what most of them do which is ducking and diving around an index.

[Lootman]

Glad to see SMT management actively changing their Tesla % holding. That's what active managers should do instead of what most of them do which is ducking and diving around an index.

I would think that the SMT managers are the very last people who can be accused of index-hugging. SMT is surely the opposite of an expensive closet tracker, which is a valid criticism of a lot of the other global generalist investment trusts. If it were an OEIC its name would long ago have been changed to something like "Global Disruptors Fund" rather than the staid and boring sounding "Scottish Mortgage".

That said if you believe in the managers then I don't think you should be second-guessing what they buy or sell. They have gotten where they are today by making big bets. Do they suddenly believe that Tesla will under-perform the market? If so, why keep any at all? It seems to me this is likely to be a move simply to stop their Tesla position becoming too large relatively to the portfolio. Which ironically is what some here are doing by selling some of their SMT!

[Dod101]

I have been selling some of my SMT over the last year in order to buy some dividend yield cum growth. At my stage of life I am happy to take some profits. I do not need a pile of cash but I like income, especially tax free income. Anyway even after these sales SMT is still my biggest holding, by some margin and it is 2.5 times what would be my average holding. With 32 shares currently, that is about 3.125%.

Personally I am delighted to let them get on with it and would not dream of second guessing them which is why I am always amused when some get very excited about guessing the the latest purchase by Fundsmith or Berkshire.

Dod

[bluedonkey]

Just to be clear, I have no idea what the SMT managers should do and am very happy for them to do what they do, buy/sell/hold/whatever.

[nmdhqbc]

Personally I am delighted to let them get on with it and would not dream of second guessing them which is why I am always amused when some get very excited about guessing the the latest purchase by Fundsmith or Berkshire.

I don't like cricket but I never go to a cricket match and tell everyone there that their sport is dull. Why not just let others do what they enjoy without looking down your nose at them in an open forum like this. I don't think anyone is getting excited about it. Just idle speculation for a small amount of fun. Nothing wrong with that. No-one is getting too excited or putting too much weight on it. Thumper's mum was a wise rabbit.

[SalvorHardin]

Personally I am delighted to let them get on with it and would not dream of second guessing them which is why I am always amused when some get very excited about guessing the the latest purchase by Fundsmith or Berkshire.

Second guessing the latest purchases as revealed by the new 13-F form is a popular activity on TMF's Berkshire Hathaway board . The new purchases and major top-ups revealed earlier in the week were Verizon Communications (telecoms), Kroger (groceries) and Chevron (oil, gas, power, chemicals). IMHO these threads are a good source of ideas.

There's quite a bit of Tesla discussion there, the most recent being Tesla's "investment" in Bitcoin
https://boards.fool.com/tesla-buys-bitcoin-34745584.aspx?sort=whole#34745584

13-F speculation threads:
https://boards.fool.com/13-f-speculation-34753383.aspx?sort=whole#34753383
https://boards.fool.com/berkshire-mystery-investment-34748522.aspx?sort=whole#34748522

[Dod101]

Personally I am delighted to let them get on with it and would not dream of second guessing them which is why I am always amused when some get very excited about guessing the the latest purchase by Fundsmith or Berkshire.

I don't like cricket but I never go to a cricket match and tell everyone there that their sport is dull. Why not just let others do what they enjoy without looking down your nose at them in an open forum like this. I don't think anyone is getting excited about it. Just idle speculation for a small amount of fun. Nothing wrong with that. No-one is getting too excited or putting too much weight on it. Thumper's mum was a wise rabbit.

I am sorry if I came across like that. It is not intended. One of the difficulties with these Boards is that we miss out on the nuances. Let us all get off our high horses.

Dod

[thehaggistrap]

An important point is of course that it is not an “individual” share but a collective and the risk (which I acknowledge is there) is spread.

Indeed - Scottish Mortgage trust is actually fairly well diversified.
Some people fret its all "tech" firms.
However how do you compare Amazon, Tesla and TENCENT (the 3 biggest holdings)?

They all operate in difference market space.
The only common factor is they utilise technology to gain competitive advantage.
But surely that is what any company has to do in modern world ?

I am a big fan - the Baillie Gifford managers do a far better job of picking stocks, and selling at the correct time, than I would on my own.

[Bouleversee]

Down nearly 6% at close today. Has Bitcoin exploded or what? Opportunity to add or hint to reduce?

[unperplex]

Well, I’ve bought some more on the dip . You can see why it’s down. All of it’s top 10 holdings were down (between about 0.5% and 5%).
However I think they will go up again.... I hope.....

[thehaggistrap]

Scottish Mortgage Trust has always been a little volatile.

However over longer-term the trend has, so far, been consistent.
My experience is that it is best to ignore the short term peaks and troughs and just sit on them.

Those invested in Scottish Mortgage Trust might also like to look at Edinburgh WorldWide Investment Trust.
Similar concept but invested in small-cap companies yet to establish themselves.

[Urbandreamer]

As folks on this thread know, I've been selling SMT every time that it breached 11% of my portfolio.

Naturally I hope that the current price direction reverses and starts heading north. However failing that I'll start buying if it drops below 8% of my portfolio.

I have a lot of faith in SMT's managers so I don't expect that situation to happen. But if it does then I'll jump at the opertunity.

[unperplex]

I’ve again bought some more on this morning’s dip.

[Dod101]

I will not be buying any more unless the share price takes a really big dip. That currently seems a little unlikely but you never know. I am glad though that I sold some at £14.10 last week. Never look a gift horse in the mouth.

Since 1 January 2020, I have raised as much from Scottish Mortgage as my current holding is worth and it remains my biggest holding. Amazing really.

Dod

[unperplex]

Well, the current price seems to be about 1133, a 10.5% drop from yesterday’s drop, so quite a big drop. I still have some spare cash so I am waiting to see if it falls even more. Tesla is said to be down in premarket trading (whatever that is....).

[Vince]

It looks bad and oversold, but some perspective, its still up, at current price, over the last 6 months, by 21.4%.

I've been buying and selling SMT occasionally, I always live to regret selling, it has a nasty habit of bouncing back very quickly.

Vince

[unperplex]

Quite so, I am of course hoping it will bounce back soon, but I am aware that neither I nor anyone else knows for sure.It is said to exhibit considerable volatility and I am hoping that’s what this is. The trend over the years has been substantially up......