This might be of interest to Scottish Mortgage holders and watchers:
Tom Slater’s favourite stocks from the Scottish Mortgage portfolio
05 July 2023
The manager shares the stocks from his portfolio that he’s most bullish about.
By Matteo Anelli,
Reporter, Trustnet
The opportunity from investing the Scottish Mortgage way (focusing on disruptors that will be the next market leaders) is not what it was 10 years ago, according to veteran FE fundinfo Alpha Manager Tom Slater. In fact, it's “all the greater today”, he said, as “huge swathes of the economy are experiencing disruption and new approaches”.
Future disruptors – both listed and unlisted – come in many shapes and sizes. Below he selects some favourites from the trust’s portfolio.
The first up is one of the largest holdings, Moderna, which makes up 7.3% of Scottish Mortgage. This company became a household name thanks to its Covid vaccine, but in December, the company demonstrated that its approach could be used to make personalised cancer vaccines, the manager explained.
Another favourite is Nvidia, a Scottish Mortgage holding since 2016 (making up 4.2% of the portfolio today). As many investors will know, it is a key supplier of semiconductors and “enjoys some formidable advantages”, as the chip technology, which it's built over the decades for computer games, has proven ideally suitable to artificial intelligence (AI) computation.
But the trust’s plays in this sector don’t stop here, encompassing ASML (8.6%) and Tesla (5.2%) too.
“The semiconductor industry generally depends on ASML's exceptional engineering skills to produce cutting edge chips. Artificial intelligence is just one driver of the strong demand that we expect for that company over the next decade,” said Slater.
“Tesla rolled out access to its full self-driving capability across the US last year and it's now driven 150 million autonomous miles, providing it with a vast data advantage over the rest of the industry.”
Moving on to unlisted companies, the largest private holding in the portfolio is SpaceX (3.5%), whose reusable rockets made the commercial space market a reality.
“SpaceX made 60 launches in 2022, that's more than one per week and more than twice the number it did in 2021, as its has reduced launch costs by around 95%,” Slater said.
https://www.trustnet.com/news/13382988/ ... -portfolio