The Lemon Fool

Personally I think sub £7 is a good entry point. There may be more bad news to come but we are now back to the long term trend at least

I wasn't accusing you of complaining, Dod, just pointing out that only two years ago if anyone had said the price was around £7 we should have thought things were going well.

I get the feeling there was a pandemic bubble now reverting to mean.

SMT has a very good long term record but going up over 100% in a year was clearly exceptional and would have required a pause under any scenario, IMHO.

Best wishes


Mark.

The discount has stretched out to 14% which feels like some sort of capitulation among holders.

I bought a few yesterday for 710 so looking forward to an interesting ride for the next 10 years with these.

I have absolutely no idea if the information below is of any interest.

It's from AJ Bell

The annual return over ten year on SM is now 19.38%.

The same number for Microsoft is 27.67%

Does the 19.38% reflect a potential hefty discounted price? I've no idea -

Although that aside cumulative 19.38% over 10 years can't be scoffed at can it

AiY(D)

Dod101 wrote:

DavidM13 wrote:

Adamski wrote:@DavidM13, bounceback is possible but could get decade of value outperforming growth? Arguable that bubble has burst with growth stocks - hyped up tech stocks crashing, has happened many times before - dotcom, 2008, now lockdown winners - and if we are now in era of permanently higher inflation and interest rates, growth could underperform value for a long time.

YIKES!! Ok, maybe I will hold off buying any more of that stock then. Its only my SIPP so 20 years away to make good....

Closed last night at under £7.........

Dod

The Empire Strikes Back!

Just announced the US has raised interest rates by 0.75%

I wonder how the stock markets will take that

May have an impact on SM

AiY(D)

Well so far Powell has managed to pull off a dovish hike.

Probably well off topic but I do not see how raising interest rates helps inflation caused by hikes in the price of fuel etc which has nothing to do with the consumer in that it is not consumer demand led inflation.

Dod

The IC have an interview with Lawrence Burns of SMT.

My summary: "we have a process about what we do, and we take a 5-10 year view"
But there are some interesting questions.

It doesn't appear to be on the IC website, but can be accessed here

https://www.ivoox.com/en/scottish-mortgage-8217-s-burns-radical-innovation-always-matters-audios-mp3_rf_88539649_1.html

"Scottish Mortgage’s Burns: Radical innovation always matters"

torata

Dod101 wrote:Probably well off topic but I do not see how raising interest rates helps inflation caused by hikes in the price of fuel etc which has nothing to do with the consumer in that it is not consumer demand led inflation.

Dod

But it has a lot to do with the converse: twenty years of interest rates kept too low as underlying inflation (money supply, credit) let rip. An economic policy better-adapted to the rise of Chinese manufacturing (which kept consumer prices down) than to the UK economy. Chickens beginning to come home to roost.

Oh, and fuel is priced in dollars. The price in £ of a dollar has risen by 16% in the past twelve months. Though given where most of SMT's assets lie, our past year's performance could've been even worse measured in real money.

UncleEbenezer wrote:

Dod101 wrote:Probably well off topic but I do not see how raising interest rates helps inflation caused by hikes in the price of fuel etc which has nothing to do with the consumer in that it is not consumer demand led inflation.

Dod

But it has a lot to do with the converse: twenty years of interest rates kept too low as underlying inflation (money supply, credit) let rip. An economic policy better-adapted to the rise of Chinese manufacturing (which kept consumer prices down) than to the UK economy. Chickens beginning to come home to roost.

Oh, and fuel is priced in dollars. The price in £ of a dollar has risen by 16% in the past twelve months. Though given where most of SMT's assets lie, our past year's performance could've been even worse measured in real money.

Yes I guess that if interest rate rises help to stabilise the pound that will improve things but it would need to be a lot more than is likely to happen. I always felt that the practice of QE was bound to weaken the pound but wasn't the argument that everyone else is doing it as well.........?

Dod

Fallen below £7 today.

AiY(D)

easy come easy go etc.

AsleepInYorkshire wrote:Fallen below £7 today.

AiY(D)

As it did 3 days ago.

Dod

Dod101 wrote:

AsleepInYorkshire wrote:Fallen below £7 today.

AiY(D)

As it did 3 days ago.

Dod

Can't the Moderators declare this topic well and truely closed?

I don't know what else there is to be said on the way down that hasn't been said on the way up.

Dumbo

Dumbo wrote:

Dod101 wrote:

AsleepInYorkshire wrote:Fallen below £7 today.

AiY(D)

As it did 3 days ago.

Dod

Can't the Moderators declare this topic well and truely closed?

I don't know what else there is to be said on the way down that hasn't been said on the way up.

Dumbo

You're not required to read it.

For others it may serve as a form of record. Reactions and sentiment over the periods of rise and fall, and whatever may be in store for the future.

A couple of articles appeared in the last week or so:

Hargreaves Lansdown: Scottish Mortgage Investment Trust: June 2022 update
https://www.hl.co.uk/news/articles/scottish-mortgage-investment-trust-june-2022-update

IC Fri 24 June 2022: How Scottish Mortgage aims to weather the storm
https://www.investorschronicle.co.uk/news/2022/06/20/how-scottish-mortgage-aims-to-weather-the-storm/
via Google: https://www.google.co.uk/search?q=%22How+Scottish+Mortgage+aims+to+weather+the+storm%22+site%3Ainvestorschronicle.co.uk

just watching Tom Slater talk on their website. i think it's from yesterdays AGM. seems like a smart insightful fella. i can't help but think though that they could have got a computer to read the script and it would have the same effect on me. i hate to be so superficial but i do wonder about his perceived (by me at least) lack of charisma compared to Anderson. to be honest i found him a little smarmy at times but it seemed to work for him. how much does charm have to do with getting in on the good deal in private equity for instance? if the people involved find Slater as dry and boring as he seems will SMT miss out? could the inside scoop on listed companied not get to him if those involved have less chemistry with him? as the connections Anderson made gradually retire will Slater be making the new connections as time goes on?

or maybe this is all just my own neurosis. i have always struggled making connections with folks so maybe i'm projecting my own insecurities onto him.

nmdhqbc wrote:just watching Tom Slater talk on their website. i think it's from yesterdays AGM. seems like a smart insightful fella. i can't help but think though that they could have got a computer to read the script and it would have the same effect on me. i hate to be so superficial but i do wonder about his perceived (by me at least) lack of charisma compared to Anderson. to be honest i found him a little smarmy at times but it seemed to work for him. how much does charm have to do with getting in on the good deal in private equity for instance? if the people involved find Slater as dry and boring as he seems will SMT miss out? could the inside scoop on listed companied not get to him if those involved have less chemistry with him? as the connections Anderson made gradually retire will Slater be making the new connections as time goes on?

or maybe this is all just my own neurosis. i have always struggled making connections with folks so maybe i'm projecting my own insecurities onto him.

You can take comfort from the fact that it is not just him who has input into what makes up Scottish Mortgage. They have a whole committee or committees at Baillie Gifford so that although one named person has responsibility for a fund/IT, there is I gather a lot of cross fertilisation that goes on. It is Slater's rather strange accent that I find a bit off putting.

Dod