The Lemon Fool

Its interesting to look back, I bought SMT for the first time on 11 July 2017 for £3.96. I sold a third in July this year and have watched the SP rise further. It's my best investment to date and am very happy I made the call to put a big chunk of my SIPP into it.

MM

In the Times this morning there is an item in the Sports section featuring an interview with James Anderson, manager of this Trust. Inter alia, he tells us that he owns just over 1% of the Trust. With a market cap of over £15 billion that is what is called 'skin in the game'.

Dod

I dropped Mid Wynd (it's done nothing wrong) for Scottish Mortgage yesterday.

Here's hoping that successful streak continues.

Dod101 wrote:In the Times this morning there is an item in the Sports section featuring an interview with James Anderson, manager of this Trust. Inter alia, he tells us that he owns just over 1% of the Trust. With a market cap of over £15 billion that is what is called 'skin in the game'.

Dod

Presumably, then, he does his job because he enjoys it rather than because he needs the money.

Best wishes

Mark.

Dod101 wrote:In the Times this morning there is an item in the Sports section featuring an interview with James Anderson, manager of this Trust. Inter alia, he tells us that he owns just over 1% of the Trust. With a market cap of over £15 billion that is what is called 'skin in the game'.

Dod

One section of TT I never look at. Will have to dig it out of the bin as I am curious to know how it arose.

Bouleversee wrote:

Dod101 wrote:In the Times this morning there is an item in the Sports section featuring an interview with James Anderson, manager of this Trust. Inter alia, he tells us that he owns just over 1% of the Trust. With a market cap of over £15 billion that is what is called 'skin in the game'.

Dod

One section of TT I never look at. Will have to dig it out of the bin as I am curious to know how it arose.

It is an item acknowledging his generosity to the main Scottish Football league and is quite interesting. He sounds and always comes across as a modest sort of guy, and as well as his personal holding in SMT, he will of course be well rewarded as a long standing partner in Baillie Gifford. Good for him I'd say.]

Dod

and at least he has stayed here to pay his taxes, rather than going to live in Mauritius like Terry!

scrumpyjack wrote:and at least he has stayed here to pay his taxes, rather than going to live in Mauritius like Terry!

If his income is UK derived then presumably he has to pay UK tax on it wherever he lives. I believe Terry derives a lot of his income from his offshore businesses, where UK tax would not be a thing if you were non resident here.

Lootman wrote:

scrumpyjack wrote:and at least he has stayed here to pay his taxes, rather than going to live in Mauritius like Terry!

If his income is UK derived then presumably he has to pay UK tax on it wherever he lives. I believe Terry derives a lot of his income from his offshore businesses, where UK tax would not be a thing if you were non resident here.

Also as Terry is not UK resident he will not pay CGT.
He may have structured his earnings to be derived from overseas companies in which case they would not be subject to UK income tax.

Hard as it is to believe, I think the partners of Baillie Gifford are a fundamentally ethical lot. I have met a few, a very few of them over the years and they are all modest, down to earth people even although they are very wealthy by my standards anyway. I am thinking for instance of Max Ward of the Independent IT and Chairman, Douglas McDougall, the latter with a holding worth around £40 million and Max Ward about half of that. They are both retired senior partners in BG.

Dod

An article on Citywire about Bailie Gifford venturing into the Private Equity world. It rather smells of sour grapes, though I note that SMT and USA both have high exposure to unquoted companies.

Quilter on private equity picks: beware Baillie Gifford blow-up

Investors need to consider risk of setbacks at new entrants to the private equity world, such as Merian Chrysalis and Baillie Gifford’s highly-rated hybrid trusts, says Nick Wood, head of fund research at Quilter.

Investors looking for private equity (PE) exposure need to consider the risk of setbacks at flourishing new entrants to the space, such as Baillie Gifford’s highly-rated investment trusts and Merian Chrysalis (MERI), according to Quilter Cheviot’s Nick Wood.

However, Baillie Gifford actually remains relatively inexperienced as a large-scale investor in unquoted companies, Wood (pictured) pointed out.

‘We can’t say whether they’re a successful private equity investor yet, you probably need a good decade. But as it stands, maybe they’re in a very favourable market at the moment,’ he said.

https://citywire.co.uk/wealth-manager/n ... p/a1411673

A related article:

https://citywire.co.uk/wealth-manager/n ... n/a1410121

Tesla to post q3 results tonight after the us market closes. Going to interesting what the market makes of it, could impact SMT tomorrow.

I see Ant Group's flotation values it at $313 billion. This is another business backed by SMT in the early stages. I don't know what size of holding they now have but their judgement when investing in unquoted companies continues to look brilliant, particularly compare to Mr Woodford!

scrumpyjack wrote:I see Ant Group's flotation values it at $313 billion. This is another business backed by SMT in the early stages. I don't know what size of holding they now have but their judgement when investing in unquoted companies continues to look brilliant, particularly compare to Mr Woodford!

1.6% on 31Aug2020. Who knows what the valuation was then compared to $313bn...

https://www.bailliegifford.com/en/uk/in ... gust-2020/

nmdhqbc wrote:

scrumpyjack wrote:I see Ant Group's flotation values it at $313 billion. This is another business backed by SMT in the early stages. I don't know what size of holding they now have but their judgement when investing in unquoted companies continues to look brilliant, particularly compare to Mr Woodford!

1.6% on 31Aug2020. Who knows what the valuation was then compared to $313bn...

https://www.bailliegifford.com/en/uk/in ... gust-2020/

By a rather tortuous method, I calculated (possibly very unreliably) that SMT's holding in Ant is worth $5bn. This seems staggeringly high. My workings:

1.67 billion shares represents 11%, therefore total shares = 15.182bn.
SMT has 0.239bn shares.
0.239 / 15.182 = 1.6% (by coincidence the same % as the holding represents of SMT's assets per the August 2020 disclosure)
1.6% x $313bn = $5bn.

https://www.cnbc.com/2020/10/22/ant-gro ... -ipo-.html

That seems an unlikely valuation but I guess you could be right. SMT itself is only worth something over £15 billion although if their holding in Ant is worth £5 billion it will a lot higher shortly........... It will all come out in the wash no doubt. That is a staggeringly high valuation for Ant anyway making it according to the article I found the world's biggest IPO. SMT's shares ought to be taking off again. SMT would have to reduce its stake otherwise the IT would be overwhelmed

Dod

My figures could be wrong if there are several classes of Ant shares.

bluedonkey wrote:

nmdhqbc wrote:

scrumpyjack wrote:I see Ant Group's flotation values it at $313 billion. This is another business backed by SMT in the early stages. I don't know what size of holding they now have but their judgement when investing in unquoted companies continues to look brilliant, particularly compare to Mr Woodford!

1.6% on 31Aug2020. Who knows what the valuation was then compared to $313bn...

https://www.bailliegifford.com/en/uk/in ... gust-2020/

By a rather tortuous method, I calculated (possibly very unreliably) that SMT's holding in Ant is worth $5bn. This seems staggeringly high. My workings:

1.67 billion shares represents 11%, therefore total shares = 15.182bn.
SMT has 0.239bn shares.
0.239 / 15.182 = 1.6% (by coincidence the same % as the holding represents of SMT's assets per the August 2020 disclosure)
1.6% x $313bn = $5bn.

https://www.cnbc.com/2020/10/22/ant-gro ... -ipo-.html

I think the 0.239bn you've got there is actually the "Market Value (GBP)" column of the pdf I linked not the number of shares. They seem to only show that for the listed equities.

I think the 0.239bn you've got there is actually the "Market Value (GBP)" column of the pdf I linked not the number of shares. They seem to only show that for the listed equities.

Ah yes, you're right. Please completely ignore my calculations. The common sense test said the conclusion was dubious and common sense was right!

I think bluedonkey's valuation for SMT's stake cannot be right but I think the real question is how SMT are valuing their Ant holding at 31 August because the new valuation if the IPO goes ahead at the $313 billion valuation is, according to The Times this morning, something like twice its value established by a private fund raising two years ago. It is apparently a spin off from Alibaba. Some spin off!

This sort of thing is the reason that I have bought into Baillie Gifford China Growth. They will not find many like this I suppose, but if they find one, that's enough, and in the meantime, I buy in to the rising middle class in China. There is of course the question of governance and so on so it is not all rosy.

Dod