Scottish Mortgage heading for where

[Laughton]

Given that the valuation of Tesla seems to worry many I wonder if anyone knows how exposed Baille Gifford is (SMT has a LOT of Tesla but I think some of their other trusts do too)?

I hold SMT - impossible to argue with the performance and they've certainly called it right on Tesla so far.

[Hyndford]

Baillie Gifford is Tesla's second largest shareholder after Elon Musk.

Some more details in this article...

fnlondon.com/articles/baillie-gifford-emerges-as-one-of-the-biggest-winners-from-teslas-rise-20200207

(Apologies again for not being able to post the direct link)

[Avantegarde]

SM has now ballooned to 15% of my IT/tracker funds portfolio. I am in a quandary as to whether or not I should sit tight or top slice my holding and redistribute the proceeds elsewhere.

[scrumpyjack]

SM has now ballooned to 15% of my IT/tracker funds portfolio. I am in a quandary as to whether or not I should sit tight or top slice my holding and redistribute the proceeds elsewhere.

Well of course, if you sell the share price will then rise and if you don't sell it will fall!

[TUK020]

SM has now ballooned to 15% of my IT/tracker funds portfolio. I am in a quandary as to whether or not I should sit tight or top slice my holding and redistribute the proceeds elsewhere.

Another way of framing the issue:
If you were investing a lump sum for a portfolio now, would you put 15% of it into SMT at these prices?

[G3lc]

SM has now ballooned to 15% of my IT/tracker funds portfolio. I am in a quandary as to whether or not I should sit tight or top slice my holding and redistribute the proceeds elsewhere.

Another way of framing the issue:
If you were investing a lump sum for a portfolio now, would you put 15% of it into SMT at these prices?

No, but I Wouldn’t be starting a portfolio now.

[ADrunkenMarcus]

Would you deflower your finest specimens and water your weeds? Or would you deflower your weeds and nourish your finest?

Best wishes

Mark.

[Dod101]

Would you deflower your finest specimens and water your weeds? Or would you deflower your weeds and nourish your finest?

Best wishes

Mark.

I understand that point of course but I think at 15% I would be top slicing, in fact I know I would, having top sliced three times this year already. That is why I hold the likes of Scottish Mortgage. Piling up capital by itself is not what I want at my stage of life anyway. We all know that a certain amount of diversification is necessary and although SMT may well keep growing it may not. I wonder if the OP has any mental limits per share?

Dod

[Bouleversee]

Would you deflower your finest specimens and water your weeds? Or would you deflower your weeds and nourish your finest?

Best wishes

Mark.

Are you a bit drunken, Marcus? I fear the Mods might consider talk of deflowering OT. However, I get your drift. I certainly aim to dig up and throw out the weeds, though I sometimes don't get round to it and just leave them to wither and die whereas I feed and water my most prolific blooms though to get more I do have to deadhead them which is removing the flowers as soon as they are past their best which is what could be described as deflowering, I suppose.
Some species produce more and more blooms but others never have a second flush. You have to be experienced to know which is which and much depends on the weather which is beyond your control and fungal infections and pest invasions which do serious damage before you notice and your beautiful plant never recovers. You then agonise over what to replace it with and after it has happened several times, you might feel like paving the
whole area over or even moving into a flat unless you can find a really good gardener but there sre not many around who know more than you do yourself..

[Avantegarde]

SM has now ballooned to 15% of my IT/tracker funds portfolio. I am in a quandary as to whether or not I should sit tight or top slice my holding and redistribute the proceeds elsewhere.

Well of course, if you sell the share price will then rise and if you don't sell it will fall!

Of course.

[Avantegarde]

Would you deflower your finest specimens and water your weeds? Or would you deflower your weeds and nourish your finest?

Best wishes

Mark.

I understand that point of course but I think at 15% I would be top slicing, in fact I know I would, having top sliced three times this year already. That is why I hold the likes of Scottish Mortgage. Piling up capital by itself is not what I want at my stage of life anyway. We all know that a certain amount of diversification is necessary and although SMT may well keep growing it may not. I wonder if the OP has any mental limits per share?

Dod

With a target of 15 ITs/tracker funds for my portfolio (I currently hold 14), each on average should amount to about 7% of my total holdings. So at 15% SM is currently roughly double its target size. The thing is, I top sliced my holding of SM several times some years ago when it grew strongly. Although I achieved some diversification by investing the cash elsewhere, nothing has performed better since then. With 13 other ITs/tracker funds, I don't feel the need to diversify further right now. And if the SM share prices fell by, say, 50% it would still only be a paper loss. I doubt SM can rise very much more (unless Tesla really does take over the international car, battery and space industry). But if it falls back a bit, so what?

[Bouleversee]

I think it could rise quite a bit more. Citywire keeps mentioning promising investments SMT holds, including this one today:
https://citywire.co.uk/investment-trust ... ider+Daily

They also have a holding in Zoom which I think will go from strength to strength even if Covid-19 is brought under control now that people have discovered the benefits and savings in time and money, not to mention the environment, and many will carry on conducting meetings and negotiations in this way.

[Avantegarde]

Would you deflower your finest specimens and water your weeds? Or would you deflower your weeds and nourish your finest?

Best wishes

Mark.

I understand that point of course but I think at 15% I would be top slicing, in fact I know I would, having top sliced three times this year already. That is why I hold the likes of Scottish Mortgage. Piling up capital by itself is not what I want at my stage of life anyway. We all know that a certain amount of diversification is necessary and although SMT may well keep growing it may not. I wonder if the OP has any mental limits per share?

Dod

With a target of 15 ITs/tracker funds for my portfolio (I currently hold 14), each on average should amount to about 7% of my total holdings. So at 15% SM is currently roughly double its target size. The thing is, I top sliced my holding of SM several times some years ago when it grew strongly. Although I achieved some diversification by investing the cash elsewhere, nothing has performed better since then. With 13 other ITs/tracker funds, I don't feel the need to diversify further right now. And if the SM share prices fell by, say, 50% it would still only be a paper loss. I doubt SM can rise very much more (unless Tesla really does take over the international car, battery and space industry). But if it falls back a bit, so what?

Correction: SM is now 17% of my portfolio!

[Dod101]

Would you deflower your finest specimens and water your weeds? Or would you deflower your weeds and nourish your finest?

Best wishes

Mark.

I understand that point of course but I think at 15% I would be top slicing, in fact I know I would, having top sliced three times this year already. That is why I hold the likes of Scottish Mortgage. Piling up capital by itself is not what I want at my stage of life anyway. We all know that a certain amount of diversification is necessary and although SMT may well keep growing it may not. I wonder if the OP has any mental limits per share?

Dod

With a target of 15 ITs/tracker funds for my portfolio (I currently hold 14), each on average should amount to about 7% of my total holdings. So at 15% SM is currently roughly double its target size. The thing is, I top sliced my holding of SM several times some years ago when it grew strongly. Although I achieved some diversification by investing the cash elsewhere, nothing has performed better since then. With 13 other ITs/tracker funds, I don't feel the need to diversify further right now. And if the SM share prices fell by, say, 50% it would still only be a paper loss. I doubt SM can rise very much more (unless Tesla really does take over the international car, battery and space industry). But if it falls back a bit, so what?

Maybe you are doing what I often do as well, which is work your way through your own thoughts/feelings via this forum. That I find is helpful for clarifying my own thoughts. You certainly do not need to convince me; you just need to convince yourself and if you are content with 17% of your portfolio in one share that is fine. For me, I would not be nervous but I would think that it is too much riding on one share but you must decide; it is your money.

As Boulerversee says, there is more to SMT than just Tesla.

Dod

[bluedonkey]

It would be a very interesting day indeed if SMT ever entirely disposed of their Tesla holding.

[baldchap]

It would be a very interesting day indeed if SMT ever entirely disposed of their Tesla holding.

I was thinking that yesterday after somebody said (on here?) that the second largest holder of Tesla was Baillie Gifford.

So how do any of the BG IT/Funds start to exit their position when the time is right without starting a stampede?

[scrumpyjack]

It would be a very interesting day indeed if SMT ever entirely disposed of their Tesla holding.

I was thinking that yesterday after somebody said (on here?) that the second largest holder of Tesla was Baillie Gifford.

So how do any of the BG IT/Funds start to exit their position when the time is right without starting a stampede?

BG entire holding in Tesla only represents 7.67% of Tesla shares. Not sure what the US rules are on disclosing share sales but I can't see that the Americans would be too bothered about a British Investment Trust selling some shares. It looks like about $22 Billion worth of Tesla shares are traded each day ATM. (14 million shares at about $1,600 each) Would not take long for BG to unload

[richfool]

If Tesla is admitted to the S&P 500, which looks impending, then a lot of index funds and trackers will be obliged to buy it, which should further spread share ownership..

[peka]

"If Tesla is admitted to the S&P 500, which looks impending, then a lot of index funds and trackers will be obliged to buy it, which should further spread share ownership.."

And push the share price up even higher for a while...

But will the bubble burst eventually?

[Lootman]

"If Tesla is admitted to the S&P 500, which looks impending, then a lot of index funds and trackers will be obliged to buy it, which should further spread share ownership.."

And push the share price up even higher for a while...

The opposite is equally possible i.e. that traders buy the stock in anticipation of index funds buying it and then sell it after the effective date.

Then again index fund providers are not stupid, and have ways of positioning themselves so that they cannot be exploited in that way.

Buy the rumour; sell the news.