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28 July 2021
20:05 hour

Scottish Mortgage Investment Trust: is this tech fund a better buy?

The Motley Fool UK

21/07/2021 - 14:10

The performance of Scottish Mortgage Investment Trust (LON:SMT) continues to impress. Is this alternative fund also worth buying? The post Scottish Mortgage Investment Trust: is this tech fund a better buy? appeared first on The Motley Fool UK.


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  1. Change at the top for Scottish Mortgage Investment Trust: should I buy? (22/03/2021 - The Motley Fool UK)
    I wrote about Scottish Mortgage Investment Trust (LSE: SMT) just over a week ago. But the stock is back in the limelight again.   James Anderson, one-half of the investment duo that manages the trust, has decided to retire. While he has generated an impressive long-term track record, I’d still buy the shares and here’s why. Retirement Tom Slater and James Anderson are the investment brains behind Scottish Mortgage Investment Trust. While Anderson has announced his retirement, Slater will continue to manage the concentrated portfolio.  When I’m buying a trust, I’m really paying for the fund managers’ expertise. I’ve huge admiration for what Slater and Anderson have achieved. But after nearly four decades at Baillie Gifford, the asset manager behind the trust, I don’t blame Anderson for going out on a high.  I think Anderson has been key in the leadership and growth of Baillie Gifford. He’s certainly been part of the success of Scottish Mortgage Investment Trust. I can’t forget the impressive profits generated from the Tesla holding. But I guess all good things must come to an end. I don’t think all is lost yet as Anderson will stay until April 2022. This means that Baillie Gifford has given investors a one-year notice period. Given Anderson’s tenure with the asset manager, I can’t say I’m surprised that he’s sailing off into the sunset. I think he’s done a fantastic job with the trust. The successor I think Anderson’s boots will be hard to fill but Baillie Gifford has a good track record when in comes to transition processes. It’s worth noting that while Slater and Anderson are the lead names on Scottish Mortgage Investment Trust, they are supported by a diverse investment team. I reckon Baillie Gifford has developed several talented successors in Anderson’s team. I think life after Anderson will go on. So what will be happening now with Scottish Mortgage Investment Trust? Well, Slater will of course have to step up as the main person behind the trust. But to alleviate the pressure, he will be supported by Lawrence Burns, who will act as deputy fund manager of the global portfolio. Burns manages some of Baillie Gifford’s funds and so he already has an influential role at the asset manager. In fact, he’s an experienced member of the long-term global growth team that Anderson founded. My view Some investors may be nervous over this change in leadership. It comes after the shares have been hit by a tech sell-off, a theme which is very prominent through the portfolio. There have also been concerns over valuations of some of the private tech companies. After all, 2020 was a stellar year and there’s no guarantee this performance can be replicated in 2021. But I’m not too worried about this. I reckon both Slater and Burns can continue to manage Scottish Mortgage Investment Trust successfully. Both have worked with Anderson for some time, and have learnt their trade well. So I don’t expect much chopping and changing of the portfolio anytime soon. Hence I’d grab this opportunity and would buy Scottish Mortgage Investment Trust in my portfolio. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading Is Scottish Mortgage Investment Trust doomed now its star fund manager is quitting? The Scottish Mortgage Investment Trust share price is falling! Should I buy? Scottish Mortgage Investment Trust: 2 peers paying bigger dividends Why I’d back the Scottish Mortgage Investment Trust Scottish Mortgage Investment Trust shares are falling: are they priced to buy? Nadia Yaqub has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Tesla. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Change at the top for Scottish Mortgage Investment Trust: should I buy? appeared first on The Motley Fool UK.
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  2. Why I’d back the Scottish Mortgage Investment Trust (17/03/2021 - The Motley Fool UK)
    The Scottish Mortgage Investment Trust (LSE: SMT) is one of the best-performing investment trusts in the UK. Over the past five years, it has returned nearly 370%. Over the past year, it has gained 116%. However, over the past few weeks, investors have been selling shares in the trust due to concerns about valuations in the US tech sector. But I believe this could be an excellent opportunity to snap up its shares at a discount. That’s why I’d buy the company today. Scottish Mortgage Investment Trust outlook As noted above, the market has been selling shares in Scottish Mortgage due to valuation concerns. These concerns may have some merit. Many US tech shares look incredibly expensive at current levels after achieving one of the best performances on record last year.  Nevertheless, while some US tech shares look expensive, it’s impossible to tell what the future holds for these companies. Indeed, at the beginning of last year, it seemed to me that many companies looked expensive, but I had no way of telling how a global pandemic would have reshaped the global economy. This is the most considerable risk all investors face. Trying to predict the future is impossible. Therefore, it’s impossible to tell whether or not these companies are expensive. Instead, I think the best approach is to view the Scottish Mortgage Investment Trust through a long-term lens. Some of the companies in the trust’s portfolio might be overvalued, but others may not be. Some corporations may prosper over the next few years. Others may not. However overall, the global economy should continue to grow, and the tech sector should benefit from this.  As such, I think the Scottish Mortgage Investment Trust is a great way to invest in the booming global technology sector. The trust allows investors to buy a portfolio of global technology champions at the click of a button without having to worry about overseas transaction fees, exchange rates or other problems. It holds positions in European, US and Asian tech champions such as Delivery Hero, Tencent Holdings and Meituan It also owns a private company portfolio, which would be virtually impossible for individual investors to acquire themselves. Buying for the long haul As well as the risk of uncertainty, the most significant risk facing the Scottish Mortgage share price today is the company’s concentrated portfolio. Around 25% of its assets are invested in just four holdings. Such a high level of concentration could make the shares incredibly volatile. This is something I’ll have to keep in mind as we advance. It could also lead to significant losses for the trust — and its shareholders — if one of these top four holdings collapses.  Still, this is a risk all fund investors face. So, it’s a risk I’m happy to deal with. And, as I noted above, I’m focused on the Scottish Mortgage Investment Trust’s long-term potential. Not its short-term share price movements. That’s why I’d buy the investment company for 2021. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading Scottish Mortgage Investment Trust shares are falling: are they priced to buy? Why I’d buy Scottish Mortgage Investment Trust today Why I’m buying Scottish Mortgage Investment Trust shares today 2 factors I think affect the Scottish Mortgage Investment Trust share price Scottish Mortgage shares have fallen over 15% in 1 month. Here’s what I’m doing Rupert Hargreaves has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Why I’d back the Scottish Mortgage Investment Trust appeared first on The Motley Fool UK.
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  3. Scottish Mortgage Investment Trust: here’s what I’m focusing on (26/03/2021 - The Motley Fool UK)
    There has been a lot of news flow around Scottish Mortgage Investment Trust (LSE: SMT) recently. I think most investors have been focusing on the public companies it holds. And rightly so since this makes up the vast majority of the portfolio. But I think investors may be missing a trick and overlooking the trust’s private companies or unquoted holdings. This is what I’m focusing on and it’s one of the reasons why I’d buy Scottish Mortgage Investment Trust in my portfolio. Unquoted holdings: an overview Approximately 17% of the trust is invested in private companies. In fact, the portfolio has 48 unquoted holdings. Tech is overall a big theme, so I’m not surprised to see a tech bias in this portion of the trust as well. The fund managers have successfully managed to identify and invest in some early-stage tech companies before they float on the stock market. Some examples include Snowflake and Palantir Technologies. It’s been a key strategy that so far has paid off. But I don’t think it has been by fluke. In fact, I’m impressed that the fund managers have managed to consistently and successfully take small stakes in early-stage companies. To me, it’s one of the qualities that makes a great investor. Recent fears The recent tech sell-off in the stock market has affected the trust’s public holdings. But it has meant that some investors are also questioning the valuations of the unquoted holdings. In April 2020, Scottish Mortgage Investment Trust took the prudent approach and announced that it had cut the value of its unquoted investments. This was in response to the coronavirus stock market crash. The tech sell-off has somewhat subsided, but if it happens again I think the unquoted holdings could be thrust into the limelight once more. This comes at a time when James Anderson, one of the investment brains behind the trust, has announced his retirement. I’ve mentioned this before, but I’m not worried about this change in leadership. Baillie Gifford, the asset manager behind the Scottish Mortgage Investment Trust, has a good track record when a fund manager hands over the baton to their successor. Success so far Two unquoted holdings that the trust is invested in are Stripe and Epic Games. Both private companies have been making headlines due to their phenomenal valuations. Stripe, the global payments processor, received a record $95bn valuation. This comes after it recently raised $600m from a range of investors including Scottish Mortgage Investment Trust. I reckon Stripe could go public, which would mean it’s another unquoted success for the trust. Epic Games, the private company behind the worldwide hit video game Fortnite, recently received a $28bn valuation. To me this is further evidence that the fund managers have successfully identified growth opportunities in unquoted investments. Of course past performance is not an indication of future results. Unquoted investments are risky and not for the faint hearted. Private companies are typically at the early stages of their business life and so a lot could go wrong. But what I like about the Scottish Mortgage Investment Trust is that the risk of unquoted companies is somewhat cushioned with the larger portfolio of public holdings. This is why I’d buy the trust in my portfolio. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading 3 ways to invest in technology stocks Change at the top for Scottish Mortgage Investment Trust: should I buy? Is Scottish Mortgage Investment Trust doomed now its star fund manager is quitting? The Scottish Mortgage Investment Trust share price is falling! Should I buy? Scottish Mortgage Investment Trust: 2 peers paying bigger dividends Nadia Yaqub has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Snowflake Inc. The Motley Fool UK owns shares of Palantir Technologies Inc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Scottish Mortgage Investment Trust: here’s what I’m focusing on appeared first on The Motley Fool UK.
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  4. Should I buy Scottish Mortgage Investment Trust at the current price? (02/05/2021 - The Motley Fool UK)
    It’s been an eventful 2021 so far for Scottish Mortgage Investment Trust (LSE: SMT). The fund manager of the multi-billion portfolio, James Anderson, has announced his retirement. This follows the sell-off of many tech and growth stocks earlier in the year, due to fears of higher inflation and interest rates. I’ve mentioned before that I think the real gem is Scottish Mortgage Investment Trust’s unquoted portfolio. There’s a significant amount that is invested in private companies. In fact, as at the end of February, approximately 17% of the trust is held in unquoted holdings. Some of these have gone onto float on the stock markets through an initial public offering (IPO). And I don’t think this is by fluke.  I’m still bullish on the trust and would buy it in my portfolio. But what really caught my eye is the fact that the it has dipped its toe into the world of cryptocurrency. Here’s my take on this investment. The recent addition It has been revealed that Scottish Mortgage has invested $100m (£72m) into Blockchain.com. This is the UK’s biggest cryptocurrency firm. And the amount is the single largest investment in the company to date. The $100m was part of a $300m funding round, which values Blockchain.com at $5.2bn. It also means that Baillie Gifford, the asset manager behind the trust, is the largest external shareholder in the London-based firm. In terms of the size of the unquoted holding in the portfolio, it’s insignificant. Scottish Mortgage Investment Trust’s current assets are worth approximately £18bn. This investment would mean that it represents 0.4% of the overall trust portfolio. It’s safe to say that it’s a very tiny amount. Blockchain.com So what does Blockchain.com do? It’s a platform where retail and institutional investors can buy, sell, and store various cryptocurrencies. I think it’s a timely investment for Scottish Mortgage as Coinbase recently made its US stock market debut. Blockchain.com, like Coinbase, is making cryptocurrency widely available. So what does this mean? This is the trust’s first significant investment in the digital asset. I think is also continues to highlight that cryptocurrency is going mainstream and is becoming more widely accepted. I’m not surprised by this holding. The fund managers of the Scottish Mortgage Investment Trust are not afraid to make bold moves. I think it has served them well. In fact, the long-term performance of the portfolio will verify that. To be frank, I’m amazed they had not made a cryptocurrency investment earlier. Risks While the long-term track record of the Scottish Mortgage Investment Trust is impressive, the stock does come with risks. There is no guarantee this stellar performance will continue. In fact, the tech sell-off highlights how the shares can be impacted. Also unquoted holdings can be risky. A lot can can go wrong and institutional investors such as the trust can see their holdings fall significantly. But what I like about Scottish Mortgage is that the private company portfolio is very diversified across a number of firms. This is why I’d buy the trust at the current price in my portfolio. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading Scottish Mortgage Investment Trust: should I buy after SMT’s recent 25% gain? 2 FTSE 100 stocks I’d buy right now if I had £1,000 to invest Why I think the Scottish Mortgage Investment Trust share price will rise again Nadia Yaqub has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Should I buy Scottish Mortgage Investment Trust at the current price? appeared first on The Motley Fool UK.
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  5. Will the Scottish Mortgage Investment Trust share price keep rising? (21/06/2021 - The Motley Fool UK)
    Scottish Mortgage Investment Trust (LSE: SMT) was one of 2020’s standout stocks. Its year-on-year share price rose a staggering 106%, heavily outperforming other popular investment trusts. However, the stock’s value dipped from the all-time high of 1,415p in early 2021 in line with the global tech sell-off. The share price has since recovered over 20%, currently sitting at 1,247p. Though this past performance is not indicative of future returns, there are several of reasons I believe the Scottish Mortgage Investment Trust share price can keep rising. Global exposure Scottish Mortgage has a hugely diversified portfolio with over £19bn assets under management. Notable top ten holdings include Tencent (5.8%), NIO (3.2%), and Moderna (4.7%), all of which have provided stellar returns in the past year. Exposure to such high-growth stocks is a real highlight for me. Although the fund is dominated by tech, the top holdings still grant investors diverse access into multiple industries in one investment. This diversity vastly reduces the risk of banking on just one stock. Though the heavy focus on growth companies may lead to increased volatility, it also positions the trust’s shares for longer-term returns. Scottish Mortgage also demonstrated its active management by selling over 7% of its Tesla stock earlier this year before the tech sell-off. This gives me confidence in its management of any short-term volatility.   Tech dominant risks The tech sell-off was the main reason that the Scottish Mortgage Investment Trust share price fell earlier this year. As I covered in a previous article, the sell-off was primarily due to rising inflationary concerns fuelled by the expectations that central banks will reduce their fiscal stimulus measures post-Covid. In addition to this, the global semiconductor shortage has slowed the growth of many electric vehicle companies. Two of Scottish Mortgages holdings, NIO and Tesla – which make up a whopping 8.2% of the portfolio – have experienced problems in production as a result of this. The above factors seem to have turned investors appetite sour on tech stocks, driving down share prices of some industries’ frontrunners. While these shares are beginning to recover in value, the tech-heavy make-up of its portfolio could pose a risk to the Scottish Mortgage Investment Trust share price in the future. In addition to this, fund manager James Anderson has announced he will be stepping down in 2022, after four decades with Baillie Gifford. Having led the trust for so long, his departure could lead to questions around future performance. Scottish Mortgage Investment Trust share price: where next? I think the trust is poised for some great long-term growth, with a key stake in some promising emerging growth companies. However, the inflationary uncertainty of the foreseeable future certainly poses a risk to the short-term Scottish Mortgage Investment Trust share price as its portfolio is so heavily reliant on tech growth stocks. This could lead to some more volatility in the future. However, as a current owner, I am bullish about the future of the trust. I think the Scottish Mortgage share price offers more room for growth and could see a steady rise throughout the remainder of the year. Therefore, I would add more of this stock to my portfolio today. The post Will the Scottish Mortgage Investment Trust share price keep rising? appeared first on The Motley Fool UK. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Investment trusts better buy: Scottish Mortgage or AVI Global? Why I’m still buying Scottish Mortgage Investment Trust Here’s why I’m still buying Scottish Mortgage Investment Trust What’s next for the Scottish Mortgage share price? Scottish Mortgage Investment Trust: should I invest now? Dylan Hood owns shares in Scottish Mortgage Investment Trust, NIO, and Tesla. The Motley Fool UK owns shares of and has recommended NIO Inc. and Tesla. The Motley Fool UK has recommended Moderna Inc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  6. Scottish Mortgage Investment Trust is the No. 1 HL buy. Time to join? (25/06/2021 - The Motley Fool UK)
    The Scottish Mortgage Investment Trust (LSE:SMT) is hot property right now. It sits atop the Hargreaves Lansdown list of both the most bought and most viewed shares. The FTSE 100 fund is investment manager Bailie Gifford’s flagship, and for good reason.  In the last five years it has produced a 400%+ return for investors. So a £10,000 investment in SMT in 2016 would be worth around £40,200 today. That’s a healthy bump.  Leading trends The Scottish Mortgage Investment Trust is perhaps most famous for buying heavily in Tesla stock. And then slashing its stake in Elon Musk’s electric car giant before tech shares nosedived earlier this year. So the fund managers’ timing has been impeccable so far.   I do like the fact that the managers move quickly, and don’t rest on their laurels.  In April 2021, SMT confirmed it had invested £72m in the UK’ largest cryptocurrency company, Blockchain.com. That investment amounts to less than half a percent of the fund’s £17.5bn holdings. But it is a statement of intent from Scottish Mortgage Investment Trust that it won’t be left behind while tech advances.  SMT invests for the long term, which will appeal to buy and hold value investors. A famous quote from them is that: “We look to add value over five year time frames, preferably much longer. We don’t see that we can add much more than anyone else in the short term.” The downside Co-manager James Anderson will step away next year, according to press reports. So questions are growing as to whether SMT can continue picking winners with such frequency. The other co-manager, Tom Slater, and deputy manager Lawrence Burns will stay on, however, so it’s not a total changing of the guard.   SMT’s exposure to relatively volatile stocks like NIO may also draw concerns. The Chinese electric carmaker is up more than 500% in the past 12 months. But it also lost half its value between February 2021 and May 2021. And NIO comprises 3.2% of the total fund’s holdings. More cautious investors may want to swerve SMT based on this alone.  And while much focus remains on the fund’s top 10 holdings, there are some questionable choices further down the list. Elon Musk’s SpaceX and You & Mr Jones, two private companies, make up nearly 2% of the fund. Private firms are harder to value than listed businesses, so as an SMT shareholder it can be tricky to work out if I’m getting value for money.   On a personal note I’m really not a fan of the mercurial Dogecoin investor Mr Musk. I hotly dispute his genius and think he’s a loose cannon. So for me, hefty investments in his unprofitable companies just turn me off.  Buying cheaply At time of writing, the Scottish Mortgage Investment Trust is available to buy at a 3% discount to NAV. That’s a calculation of the net asset value of all the companies it has stakes in.  The average discount, taken across the last 12 months, is less than 0.8%. Given this tidy markdown, now seems a decent time for me to consider buying SMT shares. The post Scottish Mortgage Investment Trust is the No. 1 HL buy. Time to join? appeared first on The Motley Fool UK. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading Will the Scottish Mortgage Investment Trust share price keep rising? Investment trusts better buy: Scottish Mortgage or AVI Global? Why I’m still buying Scottish Mortgage Investment Trust Here’s why I’m still buying Scottish Mortgage Investment Trust What’s next for the Scottish Mortgage share price? Tom Rodgers has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended NIO Inc. and Tesla. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  7. Scottish Mortgage shares: 5 reasons why I’d buy (17/02/2021 - The Motley Fool UK)
    Scottish Mortgage (LSE:SMT) shares had a phenomenal run in 2020. But some investors are concerned whether the investment trust can replicate its success in 2021. After all, past performance isn’t an indication of future performance. I think Scottish Mortgage shares are still worth me buying though. Here I’ll explain five reasons why I’d hold the stock in my portfolio. #1 – Experienced investment duo I think the first thing to note is that when buying a trust, I’m really paying for the investment experience of the fund manager(s). The same applies for Scottish Mortgage shares. The portfolio is run by investment duo James Anderson and Tom Slater. Both have been with Baillie Gifford, the asset manager behind the trust, for a long time. This gives me some comfort that the fund managers have developed their own style at a reputable investment house and are unlikely to make knee-jerk decisions. #2 – Long-term track record I don’t think Scottish Mortgage’s impressive performance is a fluke. One of the things I look out for is consistent performance over the long term. With Scottish Mortgage shares, I get exactly that. I can’t deny the trust’s strong long-term performance. This shows me that the fund managers are adaptable and can deliver strong returns during various market conditions. This really emphasises my first reason for buying Scottish Mortgage shares. I’m paying for the investment experience of Anderson and Slater. #3 – Unquoted companies I think one of the great things about Scottish Mortgage is that I get exposure to some private companies as well as listed ones. Approximately 17% of the portfolio is invested in such unlisted firms. Anderson and Slater think this space is full of compelling opportunities. Current private holdings include Stripe and TransferWise. This is  another reason why I’d buy Scottish Mortgage. #4 – Tesla One of the concerns a lot of investors had was the large weighting to Tesla. At one point the stock accounted for 12% of the portfolio. I must admit I’ve got to applaud both Anderson and Slater on taking the large Tesla stock position and letting it run. The fund managers called the stock right. They did well to maintain the Tesla position as it was being included in the S&P 500 index last year. Now that has happened, they’ve reduced their holding to 5.1% of the portfolio (as of the end of January). They’ve taken profits on Tesla and I don’t blame them. It highlights to me their prudence as fund managers. A quality I like in investment professionals. The risks Let me pause here and say that Scottish Mortgage shares aren’t without risk. The performance delivered in 2020 isn’t guaranteed to repeat in 2021. The stock is trading close to all-time highs, which may make some investors uncomfortable. The portfolio is concentrated and the fund managers aren’t afraid to takes large stock positions. This could go right but also could work against them. If a stock underperforms, it’s likely Scottish Mortgage shares will fall in value too. #5 – Cost focus What I think is refreshing is the fund managers’ focus on driving down the cost of investing. Scottish Mortgage doesn’t charge a hefty performance fee. The trust also has a competitive ongoing charge of 0.36%. In my opinion, Scottish Mortgage shares offer investors like me a low-cost global portfolio with an impressive long-term track record. For these reasons I’d buy the stock. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading Scottish Mortgage just sold Tesla stock. Here’s my view on the trust now Hargreaves Lansdown investors are buying Scottish Mortgage Investment Trust. Should I? The Scottish Mortgage Investment Trust share price is up 117% in the last 12 months – can it keep rising? The Scottish Mortgage share price doubled in 2020: should I buy now? 1 FTSE 100 stock from my best stocks to buy now list Nadia Yaqub has not position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Tesla. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Scottish Mortgage shares: 5 reasons why I’d buy appeared first on The Motley Fool UK.
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  8. I’d still buy Scottish Mortgage after its 25% drop, but with this proviso (12/03/2021 - The Motley Fool UK)
    I’ve been a huge fan of the Scottish Mortgage Investment Trust (LSE: SMT) for years. Yet lately I have taken to warning readers that it may be riskier than they think, and they should reassess its place in their portfolio. With the trust falling by around a quarter in recent weeks, I’m glad I did. What I originally saw as a diversified global investment trust had become heavily concentrated in the US. At one point almost three-quarters of Scottish Mortgage was invested in the States, with a large weighting towards technology. That largely explains its success, given that US tech has been the world’s top sector for the last decade. My worry was that many investors did not realise that this was the case. They might then unwittingly double up on the sector by buying a specific US tech fund as well, or investing directly in the trust’s top holdings such as Tesla, Amazon and Microsoft. A US tech play This would leave them overexposed to a correction, which had to come at some point, given Scottish Mortgage’s astonishing outperformance. Nothing that good can last forever. My other concern was that the trust has done so well, that it could single-handedly unbalance a portfolio. Measured over 10 years, the Scottish Mortgage share price has grown an incredible 895.3%, against just 188.2% for its benchmark, the FTSE All World Index. Some investors like to rebalance, by selling some of their winners. Many will have let the money roll, and become overexposed. As a rule, I don’t like any single investment to make up more than 10% or 15% of my portfolio, at most. Success has turned Scottish Mortgage into a mighty behemoth. It is by far the UK’s largest investment trust, with a market cap of £19.3bn. This means a lot of investors will be hurting after the recent share price dip. They won’t be hurting that much, though. Despite recent turbulence, it still trades 117% higher than one year ago. I’d still buy Scottish Mortgage The main reason Scottish Mortgage fell back is wider concerns about the tech sector and growth stocks generally, as bond yields and inflation rise. Until recently, Tesla was the trust’s biggest holding, making up an incredible 10% of the fund. The Tesla share price has fallen by around a quarter as well in recent weeks. A coincidence? Not so much. Scottish Mortgage remains heavily weighted to tech and other disruptive technologies. Chinese net giant Tencent Holdings is now its biggest holding, followed by life science company Illumina, Microsoft, Tesla, Chinese electric car maker NIO and Chinese e-commerce giant Alibaba. I would still buy Scottish Mortgage. Its track record is second to none. Managers James Anderson and Tom Slater have done an incredible job. The recent fallback could be a buying opportunity. However, I would first examine my own portfolio, to see whether it fits. If I already had too much exposure to disruptive tech, I would tread carefully. I’d also consider this opportunity. The high-calibre small-cap stock flying under the City’s radar Adventurous investors like you won’t want to miss out on what could be a truly astonishing opportunity… You see, over the past three years, this AIM-listed company has been quietly powering ahead… rewarding its shareholders with generous share price growth thanks to a carefully orchestrated ‘buy and build’ strategy. And with a first-class management team at the helm, a proven, well-executed business model, plus market-leading positions in high-margin, niche products… our analysts believe there’s still plenty more potential growth in the pipeline. Here’s your chance to discover exactly what has got our Motley Fool UK investment team all hot-under-the-collar about this tiny £350+ million enterprise… inside a specially prepared free investment report. But here’s the really exciting part… right now, we believe many UK investors have quite simply never heard of this company before! Click here to claim your copy of this special investment report — and we’ll tell you the name of this Top Small-Cap Stock… free of charge! More reading Scottish Mortgage is down 20%: should I buy today? Why has the Scottish Mortgage share price crashed? Can The Scottish Mortgage Investment Trust and Baillie Gifford American Fund recover? Scottish Mortgage Investment Trust has crashed. Should I buy now? 2 UK growth stocks that would have doubled my money if I’d invested 2 years ago Harvey Jones has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post I’d still buy Scottish Mortgage after its 25% drop, but with this proviso appeared first on The Motley Fool UK.
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  9. The Scottish Mortgage share price: here’s what I’m doing now (24/02/2021 - The Motley Fool UK)
    The Scottish Mortgage (LSE: SMT) share price has slumped in value over the past week. Shares in the investment trust have dropped around 10% since February 18.  After the stock’s recent performance, this sudden decline might have surprised some investors. Before the slump, the stock was up around 15% for the year. However, it’s now trading at around the same level it started the year. Still, over a longer period, shares in the investment trust are still beating the market. The value of the trust has risen by more than 100%, excluding dividends over the past 12 months. It has outperformed the FTSE 100 by around 107%, excluding dividends.  Taking a step back looks as if the trust’s performance this week is just a blip. But does that mean I should take advantage of the recent decline in the value of the Scottish Mortgage share price to buy into this growth story?  Scottish Mortgage share price outlook  Past performance should never be used as a guide to future potential. As such, just because the trust has been a top investment to own over the past 12 months does not necessarily mean that it will continue to do so.  Indeed, as an investment trust, the performance of the stock is tied to that of its underlying holdings, which in this case are high-flying tech companies like Tesla, Amazon and Chinese tech group Alibaba.  All of these companies have prospered in the pandemic. As a result, the value of their shares has surged. Unfortunately, in recent days investors have started to question whether these stocks can continue to meet market expectations. That has resulted in significant declines in market value for some of these businesses. This has had a knock-on effect on the Scottish Mortgage share price. The risk that the value of the underlying investments in a fund will decline is always something fund investors will have to deal with. However, where Scottish Mortgage differentiates itself is that the company has a strong track record of selling assets and recycling profits into new opportunities. It recently cut its largest holding in Tesla, for example, to unlock cash.  Buy low, sell high Thanks to this strategy of buying low and selling high, the trust has produced a return of nearly 900% over the past 10 years. There’s no guarantee this performance will continue as we advance. There’s also no guarantee the trust’s strategy will continue to work. These are risks investors have to consider.  Nevertheless, as a way to invest in some of the world’s fastest-growing tech companies, I think the Scottish Mortgage share price is one of the best opportunities available to me today.  The managers of the trust seek to invest in companies with a long-term outlook. This has served them particularly well over the past decade, and it also fits in with my personal investment strategy.  As such, I would buy the investment trust for my portfolio to gain exposure to the fast-growing tech industry.  “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading Here are 2 of my FTSE best stocks to buy now Scottish Mortgage shares: 5 reasons why I’d buy Scottish Mortgage just sold Tesla stock. Here’s my view on the trust now Hargreaves Lansdown investors are buying Scottish Mortgage Investment Trust. Should I? The Scottish Mortgage Investment Trust share price is up 117% in the last 12 months – can it keep rising? Rupert Hargreaves owns no share mentioned. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK owns shares of and has recommended Alibaba Group Holding Ltd., Amazon, and Tesla and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The Scottish Mortgage share price: here’s what I’m doing now appeared first on The Motley Fool UK.
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  10. Will the Scottish Mortgage Investment Trust price recover in 2021? (13/03/2021 - The Motley Fool UK)
    The Scottish Mortgage Investment Trust (LSE: SMT) has slumped in value over the past few weeks. From a high of more than 1,400p reached in mid-February, the value of the trust has since fallen by around 20%.  However, over the past year, the performance of the trust is far more impressive. Over the past 12 months, the shares have added a total of 100% — even after recent declines.  As such, I’ve been reviewing the stock lately to see if it could be worth adding to my portfolio after its recent declines.  Scottish Mortgage Investment Trust outlook  Here at The Motley Fool, we’re long-term investors. That means we try to look past short-term market movements to concentrate on a company’s long-term potential. This is incredibly important when reviewing a growth opportunity like Scottish Mortgage.  The bulk of the trust’s assets are invested in tech companies, which are still in the early phases of growth. This means we’ve got to consider what they could be worth in, say, 10 years, rather than what they are worth today.  The manager’s approach has paid off in the past 12 months. The pandemic has accelerated the adoption of technology worldwide. The Scottish Mortgage Investment Trust was one of the few firms brave enough to take on the risk of investing large sums in the companies that have generated large gains throughout the pandemic.  However, this approach won’t be suitable for all investors. The trust’s investments have paid off this year, but they could just as easily have struggled. That’s the big problem with growth investing, it’s impossible to predict the future. Therefore, we never know for sure which companies will be tomorrow’s winners.  Portfolio makeup The challenges outlined above are the reasons why I’ve never owned a position in the Scottish Mortgage Investment Trust. I don’t feel comfortable owning a fund that holds positions in stocks I wouldn’t hold directly. I think that’s even more important when investing in growth stocks. Scottish Mortgage owns large stakes in companies I wouldn’t hold directly. Granted, this has been a mistake over the past 12 months, but that’s why I’m looking at the company today. In some cases, the outlooks for the underlying businesses have changed entirely since this time last year.  Take the trust’s second-largest holding, Amazon, for example. Last year, e-commerce sales as a percentage of overall retail sales in the UK almost doubled. The same trend took place in other developed markets. In every single case, Amazon was able to take the lion’s share of new business. This has dramatically improved the investment case for the company, in my view. And I think one of the best ways for me to own a basket of tech stocks, including the likes of Amazon is to buy the Scottish Mortgage Investment Trust. That’s why I’d buy the trust today after its recent declines. Despite the recent setback, I think the stock has a bright long-term future.  “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading 3 reasons why I’d buy £1,000 worth of Scottish Mortgage Investment Trust shares today I’d still buy Scottish Mortgage after its 25% drop, but with this proviso Scottish Mortgage is down 20%: should I buy today? Why has the Scottish Mortgage share price crashed? Can The Scottish Mortgage Investment Trust and Baillie Gifford American Fund recover? Rupert Hargreaves owns no share mentioned. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK owns shares of and has recommended Amazon and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Will the Scottish Mortgage Investment Trust price recover in 2021? appeared first on The Motley Fool UK.
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  11. Scottish Mortgage Investment Trust: 2 peers paying bigger dividends (18/03/2021 - The Motley Fool UK)
    Scottish Mortgage Investment Trust (LSE: SMT) has been in the news lately after its shares had a bit of a rollercoaster ride, falling to 950p at the beginning of March. Since then, its share price has showed signs of clawing back some of its earlier losses. One of the UK’s largest investment trusts, in my opinion Scottish Mortgage is famous for two things: its holdings – Tesla, Amazon and Alibaba to name but a few stellar US tech stocks – and the c.365% rise in its shares over the past five years. However, sadly not for its dividend of 0.3%, according to the latest ‘divided heroes’ table from the Association of Investment Companies (AIC). So, if I’m looking for a bigger dividend, should I turn to Scottish Mortgage’s peers in the Global Sector? I will indeed, as I look to expand my SIPP portfolio! Several of Scottish Mortgage’s peers in the Global sector deliver a far better dividend. For example, Scottish Investment Trust (LSE: SCIN), which has a substantial 3.2% yield at the time of writing, or Witan Investment Trust (LSE: WTAN) which has a yield of 2.4%. Both offer a marginally better dividend than Scottish Mortgage, but their shares’ performance has varied over a five-year period. A rise of over 43.5% over a five-year period is pretty healthy for Witan Investment Trust’s share price, and Scottish Investment’s shares have risen a modest 22% in the past five years. Witan Investment Trust is less technology focused compared to Scottish Mortgage Investment Trust, preferring to focus on stalwarts like Tesco and Unilever. Scottish Investment Trust’s holdings focus on different companies, like US banking giant Wells Fargo and UK telecoms leviathan BT. Scottish Investment Trust’s objective is to “provide long-term above average returns through a diversified portfolio of international equities and to achieve dividend growth ahead of UK inflation”. Meanwhile, Witan’s objective is to “achieve an investment total return exceeding that of the benchmark of the Company over the longer term, together with growth in the dividend ahead of inflation through active investment in global equities”. Both Witan and Scottish Investment Trust are very much investments for the long term, with both companies looking to achieve dividend growth ahead of inflation, which is more than can be said for their peer Scottish Mortgage Investment Trust. Although Scottish Mortgage has succeeded in an impressive share price increase over the years, it has recently been knocked back due to the volatility of Tesla’s and Amazon’s shares which forms a significant part of its holdings – a weighting of 8.89% for Tesla and a weighting of 6.55% for Amazon. This volatility might be repeated in the future. There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it! Don’t miss our special stock presentation. It contains details of a UK-listed company our Motley Fool UK analysts are extremely enthusiastic about. They think it’s offering an incredible opportunity to grow your wealth over the long term – at its current price – regardless of what happens in the wider market. That’s why they’re referring to it as the FTSE’s ‘double agent’. Because they believe it’s working both with the market… And against it. To find out why we think you should add it to your portfolio today… Click here to get access to our presentation, and learn how to get the name of this 'double agent'! More reading Why I’d back the Scottish Mortgage Investment Trust The Unilever share price slumps, but I’m still buying the stock Scottish Mortgage Investment Trust shares are falling: are they priced to buy? Why I’d buy Scottish Mortgage Investment Trust today Should I buy these cheap FTSE 100 stocks before the ISA deadline? John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Sabuhi Gard owns shares of Scottish Mortgage Investment Trust in their SIPP. The Motley Fool UK has recommended Tesco and Unilever. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Scottish Mortgage Investment Trust: 2 peers paying bigger dividends appeared first on The Motley Fool UK.
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  12. Scottish Mortgage shares are falling. Here’s why I’d buy (26/02/2021 - The Motley Fool UK)
    It’s very rare to see Scottish Mortgage (LSE: SMT) shares falling. But that’s exactly what has been happening recently. I reckon this blip in the share price is a buying opportunity for investors. Here I’ll explain why. The technology stocks Scottish Mortgage has a high exposure to technology. In fact, this remains a key theme in the concentrated portfolio. It holds the likes of Tesla and Amazon. Technology stocks have recently taken a hit and in turn,Scottish Mortgage shares have fallen. I think that investor sentiment may be changing and the focus is on the post-Covid-19 recovery. This means that stocks that were hit by the pandemic could rise. I reckon investors were taking some profits from their technology shares. But I don’t blame them, the sector has had a good run. At one point last year, Scottish Mortgage was holding over 10% of the portfolio in Tesla. I’m glad to say that the fund managers have now taken profits on the stock and reduced their weighting. As at the end of January, the investment trust had a 5.1% weighting in the electric car maker. Experienced investment duo Despite the technology sell-off, I’d still buy Scottish Mortgage shares in my portfolio as a long-term investor. I think the first thing to note is that when buying a trust, I’m really paying for the investment experience of the fund manager(s). The portfolio is run by the investment duo, James Anderson and Tom Slater. Both have been with Baillie Gifford, the asset manager behind the trust, for a long time. I think they’re experienced individuals and their impressive performance isn’t a fluke. One of the things I look out for is consistent performance over the long term. With Scottish Mortgage shares I get exactly that. This shows me that the fund managers are adaptable and can deliver strong returns during various market conditions. The fact that they’ve reduce their holding of Tesla also shows me that they’re a prudent pair. Unquoted stocks Scottish Mortgage shares also offer me some exposure to private companies. Approximately 17% of the portfolio is invested in such unquoted stocks. I think with the investment trust, I get the best of both worlds. A portfolio of listed and unlisted shares. I agree with the fund managers and reckon that the unquoted space is full of compelling opportunities. The risks Scottish Mortgage shares aren’t without risk though. The performance it achieved in 2020 isn’t guaranteed to occur in 2021 and beyond. The portfolio is concentrated and the fund managers aren’t afraid to takes large stock positions. This could go right but also could work against them. As I mentioned before, technology is a key theme and such stocks could fall again, which could impact the investment trust. Trading at a discount It’s very rare to see Scottish Mortgage shares trading at a discount to its Net Asset Value (NAV). At time of writing, the investment trust is at a 3.6% discount to NAV. I reckon this is a buying opportunity. Scottish Mortgage shares offer a competitively priced investment trust, with an ongoing charge of 0.36% and exposure to a global portfolio of stocks. It also has an impressive performance track record. I can’t argue with this, hence I’d buy the shares. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading The Scottish Mortgage share price: here’s what I’m doing now Here are 2 of my FTSE best stocks to buy now Scottish Mortgage shares: 5 reasons why I’d buy Scottish Mortgage just sold Tesla stock. Here’s my view on the trust now Hargreaves Lansdown investors are buying Scottish Mortgage Investment Trust. Should I? Nadia Yaqub has no position in any of the shares mentioned. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK owns shares of and has recommended Amazon and Tesla and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Scottish Mortgage shares are falling. Here’s why I’d buy appeared first on The Motley Fool UK.
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  13. Scottish Mortgage shares have fallen over 15% in 1 month. Here’s what I’m doing (13/03/2021 - The Motley Fool UK)
    I reckon it’s very rare to see Scottish Mortgage (LSE: SMT) shares trade at a 2% discount to net asset value (NAV). I think this is a buying opportunity, especially for a trust that has a long-term successful investment track record. Tech galore I think it’s important to understand the reasons behind the fall in Scottish Mortgage’s share price. Tech is a big theme in the trust and it holds the US and China heavyweights. These include Amazon and Tencent. Tech stocks have been sitting on some sky high valuations. But to me this isn’t surprising especially given how well these companies have performed during the coronavirus crisis. But these growth stocks have suffered a recent sell-off due to concerns over rising inflation as economies recover from Covid-19. But I should add that the fund managers reduced their holding of Tesla and banked a profit before the sell-off. To me this demonstrates prudence, a quality which I like in investment professionals. This is one of the reasons why I’d buy Scottish Mortgage shares in my portfolio. The economics Without me going into the economics, if inflation rises then interest rates are likely to rise too. This makes fixed-rate bonds unattractive and hence the prices of these securities fall. Due to the inverse relationship that bond prices have with bond yields, the latter will start to rise. So what does this mean for tech stocks? Well in such an environment, high growth stocks look unappealing. As my fellow Fool Zaven Boyrazian mentions, the value of the expected future returns for growth stocks loses value. So tech shares with high valuations start to look expensive. I don’t blame investors for taking profits on their tech stocks. But I think there’s a potential rotation happening from expensive growth stocks to cheaper value shares. Scottish Mortgage is a concentrated portfolio with a tech bias. Naturally, a rout in tech stocks will hit the share price. Private companies I thinks there’s also concerns over Scottish Mortgage’s private company or unquoted holdings. These account for 17% of the portfolio. So in light of the tech sell-off, I reckon there are some investors who are concerned over the valuations of its unquoted companies, especially when some of these are tech-related. But Baillie Gifford, the asset manager behind the trust, cut the value of its unquoted investments in response to the Covid-19 stock market crash last year. The risks Scottish Mortgage shares still come with risk. While performance in 2020 was stellar, it isn’t guaranteed this year. I should stress that the fund managers aren’t afraid to take large stock positions. While Tesla was a great call, it could also work against them. Tech stocks could fall again, which could impact the share price. Also the unquoted holdings could suffer a further valuation cut. My view I reckon Scottish Mortgage shares are a buying opportunity. What I’m really paying for is the investment experience of the fund managers. I’d love to see some commentary from the investment professionals behind the trust regarding the tech sell-off. But I don’t think the trust’s long-term performance is by fluke. I’d bag this opportunity to buy Scottish Mortgage shares in my portfolio at a discount to NAV. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading Will the Scottish Mortgage Investment Trust price recover in 2021? 3 reasons why I’d buy £1,000 worth of Scottish Mortgage Investment Trust shares today I’d still buy Scottish Mortgage after its 25% drop, but with this proviso Scottish Mortgage is down 20%: should I buy today? Why has the Scottish Mortgage share price crashed? Nadia Yaqub has no position in any of the shares mentioned. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK owns shares of and has recommended Amazon and Tesla and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Scottish Mortgage shares have fallen over 15% in 1 month. Here’s what I’m doing appeared first on The Motley Fool UK.
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  14. 3 ways to invest in technology stocks (25/03/2021 - The Motley Fool UK)
    Technology stocks — those involved in electronics, software, computers, artificial intelligence, and other information technology industries — are exciting. They are typically growth stocks. Tech indexes have typically outperformed the broader market over the long term. I don’t want to miss out on this potential for boosting my portfolio gains, so I have exposure to tech stocks, but in three different ways. Tracking a tech index I invest in tech growth stocks by holding units in the Legal & General Global Technology Index Trust in my SIPP. The trust passively tracks the performance of the FTSE World-technology Index. The trust’s historical tracking error is 0.42% gross of fees. Lower is better with tracking error, and this one suggests the trust does a good job of matching the index’s performance. The table below shows the top five trust holdings as per the latest fund fact sheet. I can’t see any surprises as the big US tech names are there, along with the world’s largest dedicated independent semiconductor foundry. Top five Legal & General Global Technology Index Trust holdings Company Percentage of fund holdings Apple Inc 16.4 Microsoft Corp 13.2 Alphabet 8.8 Facebook 4.2 Taiwan Semiconductor Manufacturing Company 4.1 Source: Legal & General Global Technology Index Trust factsheet The Legal & General Global Technology Index Trust declares itself a high risk with potentially high rewards offering. The index it tracks is concentrated in one sector, namely technology. Furthermore, the top 10 holdings account for 56% of the total value of the portfolio. Companies domiciled in the US account for 79% of the value of the portfolio. I can accept the risk, and so far, the rewards have been impressive: the trust has returned over 200% since 2016. Scottish Mortgage Investment Trust I also get exposure to technology stocks by holding Scottish Mortgage (LSE:SMT) shares in my ISA. In contrast to the passive Legal & General Global Technology Index Trust, Scottish Mortgage is a stock picker. It has built a portfolio of around 90 new-economy stocks that rely on technology or disruptive business models. Top five Scottish Mortgage Investment Trust holdings Company Percentage of fund holdings Tencent 6.5 Illumina 6.1 Amazon.com 5.9 Tesla Inc 5.1 Nio 4.8 Source: Scottish Mortgage Investment Trust factsheet Scottish Mortgage states that it runs a medium to high-risk portfolio. It is not concentrated solely in the information technology sector. Also, the top 10 holdings of this portfolio make up 49% of its value. This may help to explain why the portfolio is deemed less risky than the Legal & General one. However, of the 90 or so stocks in the portfolio, 50 are private (16.1% assets). Private companies tend to be smaller and earlier in their lifecycle than public ones and more prone to failure. I am willing to accept the risks in exchange for potentially high rewards. Although past performance does not guarantee future performance, the Scottish Mortgage share price has risen nearly 900% over the last 10 years. Tech stock picking I also pick individual UK-listed technology stocks to hold for the long term in my portfolio. Stock picking can be rewarding, but it takes time and effort to identify companies with a sustainable competitive advantage, a great management team, solid revenue growth, positive operating cash flows, and a strong balance sheet. I am also aware that I could be completely wrong about my stock picks and lose everything. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Change at the top for Scottish Mortgage Investment Trust: should I buy? Is Scottish Mortgage Investment Trust doomed now its star fund manager is quitting? The Scottish Mortgage Investment Trust share price is falling! Should I buy? Scottish Mortgage Investment Trust: 2 peers paying bigger dividends Why I’d back the Scottish Mortgage Investment Trust James J. McCombie owns shares of Scottish Mortgage Inv Trust. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post 3 ways to invest in technology stocks appeared first on The Motley Fool UK.
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  15. Can The Scottish Mortgage Investment Trust and Baillie Gifford American Fund recover? (09/03/2021 - The Motley Fool UK)
    The Scottish Mortgage Investment Trust (LSE:SMT) has plummeted in value this past week and shareholders would like to know if it will recover. Shares in the trust are down over 25% since last month after riding high most of last year. Its share price is now back around where it was in November, but in a year, the trust is still up 85%. The reason for the boom and bust is technology. The US tech sector had a sensational run through 2020 but is now experiencing a correction, and SMT is heavily tech-focused. Can US tech stocks recover? I don’t own shares in SMT, but I did buy another Baillie Gifford fund last month, at the peak of the US tech boom. Today that looks a big mistake. My investment in the Baillie Gifford American Fund is down 17% and its main holdings, Shopify and Amazon, are haemorrhaging money. But let’s take a step back and look at the reasons I invested and whether they still stand. When I bought shares in the Baillie Gifford American Fund, I was planning on holding for the long term. My reasoning was that if the big holdings correct, or crash, I trust that the fund managers will find other exciting companies to rebalance the fund. Most successful funds have their trials. But over the long term, I hope I’ll come to appreciate this purchase and be glad that I waited it out. A lot of the individual holdings are strong companies with a compelling long-term vision. The global economy is in an unusual state of flux today, so predictions are difficult. But overall, I think investing in quality companies is a good long-term strategy. Therefore, I’m happy to hold. Is The Scottish Mortgage Investment Trust a buy? The Scottish Mortgage Investment Trust and the American Fund offer a simple way to invest in a basket of American stocks. I like a lot of the companies included, and this is a simple way to access them. Main holdings in SMT include Tencent, Amazon, Alibaba, and Tesla. I’m a Tesla fan, an Amazon addict, and I respect that Tencent and Alibaba are goliaths in Asia. But there’s no doubt the US tech market was getting bubbly, with shares overvalued. So what now? I think these companies in the funds have a strong future vision that gives the funds reason to believe in their longevity. That being said, if the US becomes more inflationary, then tech stocks are sure to suffer. Mass stimulus gives reason to believe this could be on the cards. Also, it’s not always possible for a fund to liquidate and alter its holdings without short-term pain. Personally, I like the underlying stocks in these funds and would be happy to hold them as part of a diversified portfolio. Of course, there are no guarantees in investing, and putting my trust in fund managers is risky. But it’s a risk I’m willing to take. I will continue to invest in a mixture of funds and individual stocks. I like specific stock-picking the best, but funds offer a cheap and easy way of accessing an entire sector or basket of stocks. It’s also a good way to hedge my portfolio. For regular stock market investing ideas and help choosing the best shares to buy now, sign up to The Motley Fool today. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading Scottish Mortgage Investment Trust has crashed. Should I buy now? 2 UK growth stocks that would have doubled my money if I’d invested 2 years ago Should I buy Tesla shares or the Scottish Mortgage Investment Trust? 2 of the best UK shares to buy this March Should I buy Tesla shares after the US tech sell-off? John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Kirsteen owns shares of Amazon and the Baillie Gifford American fund. The Motley Fool UK owns shares of and has recommended Alibaba Group Holding Ltd., Amazon, Shopify, and Tesla and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Can The Scottish Mortgage Investment Trust and Baillie Gifford American Fund recover? appeared first on The Motley Fool UK.
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  16. Scottish Mortgage just sold Tesla stock. Here’s my view on the trust now (16/02/2021 - The Motley Fool UK)
    When I last covered Scottish Mortgage Investment Trust (LSE: SMT) in January, I said there were better trusts for my portfolio from a risk/return perspective. What concerned me about SMT was that around 9% of the trust was invested in Tesla stock. Interestingly, SMT’s latest portfolio data shows that the FTSE 100-listed trust has actually cut its stake in TSLA significantly this year. So, does this change my view on the investment trust?  Scottish Mortgage has been selling Tesla stock The latest data shows that at 31 January, Tesla was the fourth-largest holding in the Scottish Mortgage portfolio with a weighting of 5.1%. That’s a big change from a month earlier. At 31 December 2020, TSLA was the largest position in the trust’s portfolio with a 8.9% weighting. Meanwhile, back in November, Tesla was about 12% of the portfolio. Clearly, SMT has sold a large amount of Tesla stock recently. Huge profits from TSLA I think taking some profits on Tesla stock was a sensible move. Scottish Mortgage began buying Tesla heavily in 2013 when the share price was around $6. Today, the share price is above $800. So the stock has been an absolutely phenomenal investment. According to The Guardian, SMT has made a gain of around $30bn from TSLA. Now that Tesla has a $780bn market capitalisation, the risk/reward profile of the stock is very different to what it was back in 2013. At its current market-cap, the company has a forward-looking price-to-earnings (P/E) ratio of about 195. Meanwhile, the company is valued at more than $1.6m per car sold last year. Taking some profits off the table seems prudent, to my mind.  By reducing the size of the Tesla’s weighting from 8.9% to 5.1%, SMT has reduced its overall portfolio risk significantly. However, it can still benefit meaningfully if Tesla stock does continue to rise. My view on Scottish Mortgage now Now that Tesla is only around 5% of the overall portfolio, I’m more comfortable investing in Scottish Mortgage Investment Trust. That said, I do still see it as a higher-risk growth trust. At 31 January, the top six holdings in the trust’s portfolio were: Company Fund % Tencent 6.5% Illumina 6.1% Amazon.com 5.9% Tesla 5.1% NIO 4.8% Alibaba 4.6% Source: Scottish Mortgage Investment Trust.  It’s worth pointing out that nearly 10% of the portfolio was invested in Tesla and NIO (which is sometimes called the ‘Tesla of China’). It’s also worth noting the trust has a high weighting to stocks that can be quite volatile at times, such as Tencent and Alibaba. I have a small position in Scottish Mortgage and I think the trust can continue to play a role in my portfolio as a high-growth investment. However, I don’t see it as a ‘core’ holding – it’s too risky for that, in my view. I think a lower-risk growth fund like Fundsmith or a well-diversified growth trust like Monks is better suited to that.  For me, SMT is more of a speculative long-term growth holding. I’m going to keep it less than 5% of my overall portfolio. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading Hargreaves Lansdown investors are buying Scottish Mortgage Investment Trust. Should I? The Scottish Mortgage Investment Trust share price is up 117% in the last 12 months – can it keep rising? The Scottish Mortgage share price doubled in 2020: should I buy now? 1 FTSE 100 stock from my best stocks to buy now list EV stocks: 2 UK companies I’m looking at Edward Sheldon owns shares in Scottish Mortgage Investment Trust and Amazon.com and has a position in Fundsmith. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK owns shares of and has recommended Alibaba Group Holding Ltd., Amazon, and Tesla and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Scottish Mortgage just sold Tesla stock. Here’s my view on the trust now appeared first on The Motley Fool UK.
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  17. The Scottish Mortgage Investment Trust share price is falling! Should I buy? (18/03/2021 - The Motley Fool UK)
    Scottish Mortgage Investment Trust (LSE:SMT) is a publicly traded investment trust that invests globally. The FTSE 100 firm has seen a drop off in price recently so is now a buying opportunity? FTSE 100 opportunity? SMT looks for strong businesses with above-average returns. It has no constraints as to geography, industry, or sector. It had an excellent 2020 and I believe it has the potential to have a similar 2021, if not better.  The past five years, Scottish Mortgage Investment Trust shares have returned over 350%. It’s share price increased by over 110% in 2020 alone. Considering we have been in a global pandemic and a financial slump in the markets, that’s not bad in my opinion. It is currently trading at close to 1,116p per share as I write. The past month or so has been a slightly different story. Investors have begun to sell shares due to valuation concerns. These valuations are linked to the US tech sector where Scottish Mortgage Investment Trust owns a number of stocks such as Amazon, Netflix, and Alibaba to name a few. Between February and 15 March, SMT lost close to 20% in share price value.  Why I like Scottish Mortgage Investment Trust SMT is run by experienced investment duo James Anderson and Tom Slater. The duo have been with Baillie Gifford, the Edinburgh-based asset manager behind the trust, for a significant amount of time. In simple terms, as a savvy investor, I would be paying for the wealth of experience these two possess. Scottish Mortgage Investment Trust has performed well consistently over a sustained period of time and I believe it is a testament to the experienced team behind it. We all know that past performance doesn’t guarantee future performance. But I do think it shows flexibility and adaptability in differing conditions, which puts me at ease as an investor. SMT owns a number of tech stocks within its portfolio. I am a fan of tech stocks. FTSE technology stocks have become defensive options in the past year or so. The Covid-19 pandemic has changed the role technology plays in our day to day lives at a faster rate than many could have predicted. Almost 10% of Scottish Mortgage Investment Trust’s portfolio is made up of Tesla, which is another stock I like. High risk or big reward? Scottish Mortgage Investment Trust shares do possess risks. Its share price has experienced some volatility. Only six weeks ago it was flying high, but I believe market conditions are still fraught and changes could be afoot when conditions do normalise. It could be argued the recent decline is a sign of market conditions normalising. Furthermore, Scottish Mortgage Investment Trust holds substantial shares in stocks that are considered to be in a ‘bubble.’ This means activity and performance can curve upwards in the short-term but slow down and stagnate in the long term, so there is a risk of that too. SMT performed brilliantly in 2020 and I believe it will continue that trend in 2021 and beyond. It is on my best stocks to buy now list, as is this FTSE stock. I believe investing in Scottish Mortgage Investment Trust could protect my money as it spreads across a diverse range of stocks. I would currently rate it as a buying opportunity. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Scottish Mortgage Investment Trust: 2 peers paying bigger dividends Why I’d back the Scottish Mortgage Investment Trust Scottish Mortgage Investment Trust shares are falling: are they priced to buy? Why I’d buy Scottish Mortgage Investment Trust today Why I’m buying Scottish Mortgage Investment Trust shares today Jabran Khan has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The Scottish Mortgage Investment Trust share price is falling! Should I buy? appeared first on The Motley Fool UK.
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  18. 1 FTSE 100 investment trust from my best stocks to buy now list (19/05/2021 - The Motley Fool UK)
    My best stocks to buy now list is categorised, and one of these categories is FTSE 100 stocks. One of these stocks is an investment trust that has fallen in price recently so I want to know why and whether this is a buying opportunity. High on my best stocks to buy now list FTSE 100 incumbent Scottish Mortgage Investment Trust (LSE:SMT) is a publicly traded investment trust that invests in stocks globally. Its focus is on strong businesses with above-average returns. There are no constraints as to industry, geography, or sector. Scottish Mortgage has performed consistently well for a number of years. It is currently classed as the biggest investment trust in the UK and the 31st largest company listed in London. With a market value of nearly £18bn, it is a giant in its respective sector. What draws me to SMT is the fact it invests heavily in tech stocks. It has also taken the step of diversifying into the crypto world which offers it an edge over other investment trusts. Dip in share price There are two reasons the SMT share price dipped. Firstly, co-fund manager and seasoned investment guru James Anderson announced he is stepping down after 39 years with Baillie Gifford. In addition, tech stocks experienced a dip on the FTSE 100 and elsewhere due to valuation concerns by investors. As I write this, the SMT share price is trading for 1,113p per share. This is a 20% drop since February 2021, which is substantial. If I compare the FTSE 100 index as a whole in the same period, its price has risen close to 3%. FTSE 100 opportunity for the long term As a Foolish investor, I am looking for safe, long-term investments and class Scottish Mortgage as just that. Here’s why.  Firstly, SMT will see the departure of James Anderson but co-fund manager Tom Slater will continue to run the fund. He is also a seasoned fund manager and has worked with Anderson for a number of years. Next, I believe the FTSE 100 incumbent will benefit from reopening with its diversified portfolio. Furthermore, I am very bullish on tech stocks due to their continuous ability to grow and expand, so I am not worried.  Finally, Scottish Mortgage has the experience of success and ability to invest successfully embedded into its core. Since 2000, its share price has risen over 1,500%. This is the equivalent of turning £1,000 into £18,000. I know past performance is not an indicator of future performance but it definitely helps me when making a decision to invest if a FTSE 100 firm from my best stocks to buy now list has a good track record. There are risks involved with Scottish Mortgage, however. The FTSE 100 investment trust saw its share price rise to an all-time high which could mean it may not increase much further. In addition, the departure of James Anderson next year could have a long-term negative effect. SMT’s success has been underpinned by the duo of Anderson and Slater. Despite these risks, I am bullish on Scottish Mortgage and it is firmly one of my best stocks to buy now from the FTSE 100. SMT invests over the long term, which suits my investment style. It also has a diverse portfolio, which protects my money. I class it as a FTSE 100 opportunity at its current price point especially. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading The Scottish Mortgage Investment Trust (SMT) share price is falling. What’s going on? I’d invest £10k in the Scottish Mortgage Investment Trust As the Scottish Mortgage Investment Trust (SMT) share price falls, here’s my next move The ‘smell test’: when an investment doesn’t feel right 2 investment trusts to buy in May Jabran Khan has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post 1 FTSE 100 investment trust from my best stocks to buy now list appeared first on The Motley Fool UK.
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  19. Why I’m still buying Scottish Mortgage Investment Trust (04/06/2021 - The Motley Fool UK)
    After an incredible run in 2020, the Scottish Mortgage Investment Trust (LSE: SMT) is currently priced at around 1,200p, down considerably from its February all-time high of 1,415p. And I feel the investment trust, managed by Baillie Gifford, provides an opportunity for me at its lower price. Long-term outlook The aim of SMT is to be an “actively managed, low-cost investment trust, investing in a high-conviction, global portfolio of companies with the aim of maximising its total return to shareholders over the long term”, according to the April 2021 factsheet. And long term is key here. As such, I have no concerns with the short-term volatility it may currently be experiencing. The trust measures performance over a five-year period. Being a long-term investor, I’m happy with that. And I only have to look at the 100% share price rise in 2020 to see the returns SMT can offer. So why do I like it for the long term? When looking at the top holdings, I see huge potential. As of April 2021, the portfolio included Tencent, NIO, and Amazon. These companies open avenues for me to the growing tech industry. With the current tech sell-off, I see the exposure SMT can provide to this sector as a good way to diversify my portfolio further, for a good price. And I like the way the managers think ahead. SMT took the decision to halve its position in Tesla earlier this year, banking a profit before the tech sell-off. Moves like this give me confidence for the future active management of the portfolio. Risks with Scottish Mortgage Investment Trust With the above said, I’m aware of the potential risks that come with SMT. First, fund manager James Anderson intends to step down in April 2022. Having spearheaded the rise of the trust, this could arguably leave future performance in question. After all, Anderson was key in the decision to invest in Tesla back in 2013 when the stock was trading at $6. Could his keen eye be a loss in the years ahead? To add to this, the operation’s large exposure to tech can also be a risk in itself as the current tech sell-off (which my fellow Fool Dylan Hood explained very well) shows. With investor confidence continuing to fall, SMT’s share price could too. My verdict The news regarding James Anderson may be a blow for investors. He has delivered incredible returns over his time as fund manager. On top of this, the trust has been volatile recently. However, as a long-term investor, I’m not put off by this. SMT has a solid track record and I see the current share price as a good opportunity to buy. The all-time high in February may only be the beginning of what investors could see further down the line. That’s why I’m buying more of the shares now. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading Here’s why I’m still buying Scottish Mortgage Investment Trust What’s next for the Scottish Mortgage share price? Scottish Mortgage Investment Trust: should I invest now? 2 FTSE 100 tech stocks I’d buy today Hargreaves Lansdown investors are buying SMT shares. Should I invest too? Charlie Keough owns shares in Scottish Mortgage Investment Trust and NIO. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK owns shares of and has recommended Amazon, NIO Inc., and Tesla. The Motley Fool UK has recommended Illumina and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Why I’m still buying Scottish Mortgage Investment Trust appeared first on The Motley Fool UK.
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  20. Why I’d buy Scottish Mortgage Investment Trust today (15/03/2021 - The Motley Fool UK)
    Scottish Mortgage Investment Trust (LSE:SMT) was one of my top picks to buy in March. In what has been a volatile few months, the current depressed share price in the Baillie Gifford technology fund has created a buying opportunity in my opinion. I already own Scottish Mortgage Investment Trust in my Stocks and Shares ISA, but I tend to keep some cash available to take advantage of new investment ideas as they arise. I believe this could be one of those opportunities. My favourite technology fund At 112 years old, Scottish Mortgage Investment Trust is considered to be Baillie Gifford’s flagship investment trust. Its joint fund managers, James Anderson and Tom Slater, have built a reputation for identifying the best growth opportunities in expanding markets. They have a long-term outlook and look to invest in great leaders that are operating businesses with huge business opportunities. I first invested in this predominantly technology-based fund a few years ago. At the time, the fund’s investment in Tesla raised some eyebrows. It was seen as risky, unprofitable, and overvalued by many. However, Scottish Mortgage was an early backer of Tesla, first investing in 2013 when its share price was around $6. Patience paid off for Scottish Mortgage. After several years of lacklustre share price performance, Tesla’s shares climbed a phenomenal 743% in 2020. As the company grew, so did its proportion in the fund. In fact, in recent months, the fund has had to sell some Tesla shares to bring its weighting down. More than a one-hit-wonder Scottish Mortgage Investment Trust’s philosophy of investing in potentially world-changing markets is being proved right, in my opinion. As a long-term investor, I’d be happy to buy some more shares today. Far from being a one-hit-wonder, I believe the fund has several interesting investments, some of which are currently private enterprises. Part of the benefit of investing in Scottish Mortgage Investment Trust is that it allows me to be exposed to some unlisted companies that I wouldn’t be able to invest directly in as an individual investor. For instance, in 2020, Scottish Mortgage added the unlisted Swedish battery maker Northvolt to its portfolio. Founded in 2016 by former Tesla executive Peter Carlsson, Northvolt aims to develop the world’s greenest battery and establish one of Europe’s largest battery factories. The Risks After a phenomenal 110% gain in 2020 that was led significantly by the fund’s investment in electric vehicle stocks Tesla and NIO, some might argue that these gains could be difficult to replicate again. Risks in investing in Scottish Mortgage Investment Trust could also be the technology sector in general. One of the reasons for its recent near 30% decline came from a rotation from the technology sector to sectors more linked to economic recovery. Vaccine progress, a $1.9tn U.S. fiscal stimulus package and further signs of economic recovery helped push up bond yields. This in turn negatively impacted technology stocks. Further gains in bond yields could cap gains in technology shares in the near term. A Top Share with Enormous Growth Potential Savvy investors like you won’t want to miss out on this timely opportunity… Here’s your chance to discover exactly what has got our Motley Fool UK analyst all fired up about this ‘pure-play’ online business (yes, despite the pandemic!). Not only does this company enjoy a dominant market-leading position… But its capital-light, highly scalable business model has previously helped it deliver consistently high sales, astounding near-70% margins, and rising shareholder returns … in fact, in 2019 it returned a whopping £150m+ to shareholders in dividends and buybacks! And here’s the really exciting part… While COVID-19 may have thrown the company a curveball, management have acted swiftly to ensure this business is as well placed as it can be to ride out the current period of uncertainty… in fact, our analyst believes it should come roaring back to life, just as soon as normal economic activity resumes. That’s why we think now could be the perfect time for you to start building your own stake in this exceptional business – especially given the shares look to be trading on a fairly undemanding valuation for the year to March 2021. Click here to claim your copy of this special report now — and we’ll tell you the name of this Top Growth Share… free of charge! More reading Why I’m buying Scottish Mortgage Investment Trust shares today 2 factors I think affect the Scottish Mortgage Investment Trust share price Scottish Mortgage shares have fallen over 15% in 1 month. Here’s what I’m doing Will the Scottish Mortgage Investment Trust price recover in 2021? 3 reasons why I’d buy £1,000 worth of Scottish Mortgage Investment Trust shares today Harshil Patel owns shares of Scottish Mortgage Investment Trust and Tesla. The Motley Fool UK does not own shares in any company mentioned in this article. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Why I’d buy Scottish Mortgage Investment Trust today appeared first on The Motley Fool UK.
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  21. 2 factors I think affect the Scottish Mortgage Investment Trust share price (14/03/2021 - The Motley Fool UK)
    Shares in the Scottish Mortgage Investment Trust (LSE: SMT) have moved around a fair bit lately. They’ve lost around 18% in a month, although they have still returned 122% over the past year. I find it helpful to try to understand why the Scottish Mortgage Investment Trust share price moves around like this. Here are two of the factors I see possibly influencing the shares’ performance. Heavy tech exposure The trust is heavily exposed to stocks in emerging technologies in growth markets. For example, its biggest holding in its most recently reported portfolio breakdown was Chinese Internet giant Tencent. That means that the Scottish Mortgage Investment Trust share price is broadly linked to the fortunes of certain sectors and markets. This can change over time, but the current portfolio is heavily skewed towards tech. For example, Amazon and Tesla made up 11% of its total value in the most recent holdings list. So, it’s no surprise that when some of its large holdings see significant price drops, the trust also gets marked down by investors. Tesla started last week more than 20% down on the year so far, for example. It then recovered somewhat, which may help explain why the Scottish Mortgage Investment Trust share price also moved up. Growth focus It’s easy to get obsessed by short-term share price movements. But investing guru Warren Buffett emphasises that while it may be a voting machine in the short-term, in the long-term the market is a weighing machine. Instead of reacting to short-term price moves, he focusses on trying to find companies that have substantial growth opportunities ahead of them. That is similar to the trust’s approach. Its holdings in companies such as Tesla, Illumina, and NIO are focussed on the long-term potential of each company’s business model and target markets. So far, the trust’s stock pickers have proven themselves to be very talented at finding growth stories in which to invest. Past success doesn’t mean the track record will necessarily continue. There is also a risk that an attractive story is an unattractive investment if bought too expensively. But the trust’s strategy and stock picking approach mean I pay more attention to its long-term prospects than short-term movements in the Scottish Mortgage Investment Trust share price. The Scottish Mortgage Investment Trust share price and exchange rates A second factor which helps explain some movements in the Scottish Mortgage Investment Trust share price is exchange rates. None of its top 10 holdings are denominated in sterling, for example. I don’t think that necessarily makes it a better or worse investment. However, it does mean that it can be affected by moves in exchange rates. For example, one American dollar is worth 71p today. But a year ago it was worth 80p. That might not sound like much. But such shifts in exchange rates have a significant impact on the valuation of multimillion dollar positions. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading Scottish Mortgage shares have fallen over 15% in 1 month. Here’s what I’m doing Will the Scottish Mortgage Investment Trust price recover in 2021? 3 reasons why I’d buy £1,000 worth of Scottish Mortgage Investment Trust shares today I’d still buy Scottish Mortgage after its 25% drop, but with this proviso Scottish Mortgage is down 20%: should I buy today? John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. christopherruane has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Amazon, Illumina, and Tesla. The Motley Fool UK owns shares of NIO Inc and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post 2 factors I think affect the Scottish Mortgage Investment Trust share price appeared first on The Motley Fool UK.
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  22. Why I’m buying Scottish Mortgage Investment Trust shares today (15/03/2021 - The Motley Fool UK)
    Last year, Scottish Mortgage Investment Trust (LSE:SMT) shares soared by over 130% amidst the pandemic. However, the recent US tech stock price plunge has seen the value of SMT shares drop over 20% this month. Whilst this may damage shareholders’ confidence in future performance, I am using it as an opportunity to grab more shares at a cheaper price for my portfolio.  Tech-dominant portfolio  Part of the reason for last year’s stellar performance is the large exposure Scottish Mortgage Investment Trust has to US tech stocks. Some of its largest holdings include Tesla and Amazon, whose share values skyrocketed 695% and 75% respectively during the pandemic. Whilst this has provided short-term gains for investors, the trust’s portfolio also comprises of a number of smaller, more scalable stocks, for example NIO, a Chinese electric car manufacturer with exciting upside potential.  However, whilst this exposure is largely accountable for SMT’s success, it is also closely linked to its recent dip in share price. The major US tech sell-off that has occurred in recent weeks is primarily due to inflationary concerns. Rising bond yields in the UK have seen the 10-year yield reach 0.8%, with a similar story in the US. This is an indication of future interest rates, which pose a threat to the future of growth stocks who often operate in debt.  In addition to this, with post-pandemic normality on the horizon, focus could be shifting away from pandemic performing tech stocks and back onto recovering sectors such as the travel industry. After all, people are less likely to stay at home watching Netflix or to have their shopping delivered via online retailers such as Ocado, both of which make up 2.8% (£519m) of Scottish Mortgage Investment Trust’s current portfolio.  Long-term optimisation  A good chunk of the trust’s assets is invested in early-phase tech stocks, optimised for long-term growth compared to short-term gains. This is imperative to keep in mind when worrying about short-term dips. Scottish Mortgage Investment Trust manager, Baillie Gifford, demonstrated its active management by selling and banking profit on over 7% of its Tesla stock earlier this year prior to the tech dip. This gives me huge confidence in the trust’s management, a quality I look for in all my investments.  My outlook for SMT’s future  I believe the real appeal of shares in Scottish Mortgage Investment Trust lie within its actively managed and diversified portfolio. It offers investors a chance to hold indirect positions in many successful US companies as well as newer, more scalable stocks, likely to provide bigger growth in the future.  Though the trust has suffered a dip in share price due to the US tech sell-off, I’m using this as an opportunity to buy more shares. Though the tech sector may drop further due to post-Covid inflation concerns, I am confident in the investment professionals at Baillie Gifford who are constantly streamlining Scottish Mortgage Investment Trust to optimise future returns.  Here’s another stock I am bullish about… FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading 2 factors I think affect the Scottish Mortgage Investment Trust share price Scottish Mortgage shares have fallen over 15% in 1 month. Here’s what I’m doing Will the Scottish Mortgage Investment Trust price recover in 2021? 3 reasons why I’d buy £1,000 worth of Scottish Mortgage Investment Trust shares today I’d still buy Scottish Mortgage after its 25% drop, but with this proviso John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Dylan Hood owns share in Scottish Mortgage Investment Trust. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Why I’m buying Scottish Mortgage Investment Trust shares today appeared first on The Motley Fool UK.
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  23. What’s next for the Scottish Mortgage share price? (29/05/2021 - The Motley Fool UK)
    The Scottish Mortgage (LSE: SMT) share price has whipsawed over the past few months. After hitting an all-time high of 1,415p in the middle of February, it slumped by nearly a third in the following weeks. Since then, shares in the trust have recovered some of the losses. However, they’re still trading around 17% below the all-time high.  Over the past 12 months, the trust has returned a 60% and, over the past five years, it’s up 350%. Therefore, long-term investors have been well rewarded.  While past performance should never be used as a guide to future potential, I’ve been evaluating the trust recently to see if it could be worth adding the shares to my portfolio after recent declines. Scottish Mortgage share price outlook  The Scottish Mortgage Investment Trust is a growth fund. Its managers are looking for the world’s best companies, which generally means buying high-growth entities.  This approach can generate huge returns, as the historical performance of the Scottish Mortgage share price shows. But, unfortunately, high growth stocks tend to be incredibly volatile. That’s the biggest drawback of investing in these businesses. It tends to put a lot of investors off.  This goes some way to explaining why shares in the trust have performed the way they have over the past few months.  Unfortunately, I think it’s likely shares in the trust will remain volatile, purely because of its investment strategy. Finding the next generation of growth companies requires a certain amount of luck and faith. Sometimes, the investments don’t work out. However, by using a diversified approach, growth investors like Scottish Mortgage profit by focusing on winners and kicking losers out of the portfolio.  Volatility and the prospect of owning fast-growth companies are the two most significant risks hanging over the Scottish Mortgage share price. For example, if one of the trust’s high-profile top holdings suddenly runs into trouble, its shares could plunge.  Global growth Like all investments, Scottish Mortgage has its risks. Nevertheless, I’m incredibly excited about its potential. As the world recovers from the coronavirus crisis, I think there’s the potential for a substantial economic rebound. This could benefit some of the trust’s most significant holdings. What’s more, its biggest holdings, including US retailer Amazon and Chinese technology group Tencent, have substantial competitive advantages. These advantages should help these businesses reinforce their positions in their respective markets and capitalise on economic growth to the best of their ability.  As such, while I think it’s likely the Scottish Mortgage share price will continue to encounter volatility as we advance, I’m incredibly excited about the prospects for some of the companies in the trust’s investment portfolio. And with that being the case, I’d buy the stock for my portfolio today. I think it’s a fantastic way to buy a basket of the world’s top growth companies at the click of a button, despite the drawbacks outlined above. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading Scottish Mortgage Investment Trust: should I invest now? 2 FTSE 100 tech stocks I’d buy today Hargreaves Lansdown investors are buying SMT shares. Should I invest too? Is the Scottish Mortgage Investment Trust a bargain? 1 FTSE 100 investment trust from my best stocks to buy now list Rupert Hargreaves owns no share mentioned. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK owns shares of and has recommended Amazon and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post What’s next for the Scottish Mortgage share price? appeared first on The Motley Fool UK.
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  24. Scottish Mortgage is down 20%: should I buy today? (11/03/2021 - The Motley Fool UK)
    The Scottish Mortgage Investment Trust (LSE: SMT) has become a superstar of the UK fund sector in recent years. The trust’s positions in growth stocks such as Tesla, Amazon and NIO have paid off with big gains. The Scottish Mortgage share price has risen by 120% over the last year, compared to a gain of just 35% for the FTSE All-Share Index. Over 10 years, the results are even better. SMT is up by 670%, versus a gain of just 23% for the FTSE All-Share. However, there may be trouble in paradise. Although SMT’s managers have taken profits on big winners such as Tesla in recent months, the firm remains heavily exposed to such names. The recent correction we’ve seen in US tech stocks has hit SMT’s share price, which has fallen 20% since peaking on 15 February. I’m wondering whether this could be an opportunity for me to buy Scottish Mortgage shares for my portfolio — or whether it’s the start of a larger slump. How I’m approaching this Scottish Mortgage is an investment trust. In simple terms, it’s a company that invests its own money in other companies. Investors can buy shares in Scottish Mortgage to benefit from growth in the trust’s portfolio. This means that to understand the valuation of the trust, I need to look at its shareholdings. The largest holdings will have the biggest impact on SMT’s share price, so I started with these. At the end of January (the latest data available), Scottish Mortgage’s five largest holdings were Chinese e-commerce group Tencent, genetic sequencing firm Illumina, online mega-giant Amazon, and electric car firms Tesla and NIO. Are these top stocks heading for a crash? All of the five stocks I’ve listed are growing fast. They all have strong valuations, but I have to admit Tencent, Illumina, and Amazon don’t look as expensive as I expected. In a market sell-off, I’d expect these firms, and many of SMT’s other holdings, to suffer short-term losses. But from the top five holdings I’ve listed, the only two that concern me are Tesla and NIO. NIO has yet to turn a profit. I don’t know when it will. This makes valuation difficult, in my view. The situation with Tesla is a little more complicated. This business is larger and more developed — and it is profitable. However, even the best business in the world is a bad investment if it’s too expensive. And this is what I think about Tesla. With a market-cap of £465bn, Tesla is valued at twice the combined value of Ford, BMW, Volkswagen, and General Motors. That just doesn’t make sense to me. I think Tesla’s valuation has got too far ahead. Many years of growth are already priced into this business, in my view. Scottish Mortgage: my verdict Most of Scottish Mortgage’s investments look expensive by conventional measures. But the trust’s growth record suggests to me its managers are skilled at looking ahead and spotting businesses that can change the world. Even so, SMT’s exposure to Tesla and other electric vehicle companies is too risky for me to accept. If big US tech stocks enter a period of correction, I think Scottish Mortgage’s share price could have a lot further to fall. I’m not comfortable buying at the moment. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Why has the Scottish Mortgage share price crashed? Can The Scottish Mortgage Investment Trust and Baillie Gifford American Fund recover? Scottish Mortgage Investment Trust has crashed. Should I buy now? 2 UK growth stocks that would have doubled my money if I’d invested 2 years ago Should I buy Tesla shares or the Scottish Mortgage Investment Trust? John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Roland Head has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Amazon and Illumina. The Motley Fool UK owns shares of NIO Inc and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Scottish Mortgage is down 20%: should I buy today? appeared first on The Motley Fool UK.
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  25. 2 investment trusts to buy in May (07/05/2021 - The Motley Fool UK)
    Investment trusts are a great way for both new and experienced investors to gain access to the stock market. They provide exposure to an array of diverse high-end stocks, for a cost-efficient price. In this article, I am going explain why I have just added F&C Investment Trust (LSE: FCIT) and Scottish Mortgage Investment Trust (LSE: SMT) to my portfolio. F&C Investment Trust Being the oldest investment trust in the world, investing in over 400 companies in 35 countries, the objective of F&C Investment Trust is to secure long-term growth in capital and income through its internationally diversified portfolio. I see the trust ran by fund manager Paul Niven as a great way to add stability to my portfolio – especially since the announcement that the trust will be increasing its dividends for a 50th consecutive year. Its top holdings offer exposure to a variety of sectors through companies including Microsoft, Amazon, and UnitedHealth, to name a few. The trust also puts emphasis on emerging markets, with the third largest asset allocation being emerging market equities (as of March 2021) – and this paid dividends as the March report highlighted the trust’s outperformance in a falling market. Although deemed a traditional investment trust, F&C Investment Trust is adapting, as seen by the recent announcement of plans to reach a carbon-neutral portfolio by 2050. The lagging emerging market may provide a problem for the trust as it has a large weight in this sector. A recent surge in coronavirus cases, most notably in Brazil and India, may mean some of its top holdings could take a hit as these countries suffer. With that said, the trust is set up for the long term – and as such is in a good position to cope effectively with the volatility that we may see in the short term. Scottish Mortgage Investment Trust With a market value of £18bn, the trust aims to invest in a high conviction, global portfolio of companies with the aim of long-term returns. With the current share price hovering around 1,220p, that is nowhere near the 52-week high of 1,418p of February last year. The investment trust has a top 10 holding that invests heavily in tech companies. Its top three holdings are Tencent, Illumina and ASML, and its top 10 holdings make up 45.3% of its total portfolio (as of March 2021). This provides positive signs as, despite the recent dip, I still have a bullish outlook on the tech industry due to its continuous expansion and growth. The investment trust recently also saw itself diversify into the world of cryptocurrency, which gives it an additional edge over many investment trusts. With this said, I am obviously wary of buying due to the current dip in tech stocks. On top of this, the trust is trading at a high price, and as my fellow Fool Cliff D’Arcy wrote in April, I must question how much further it can rise. Long-term vision However, both trusts are designed for long-term investment – and as such, I do not see the short-term volatility they face posing a problem for long-term returns. The depressed prices of both trusts this month is why I am using now as a good time to buy. There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it! Don’t miss our special stock presentation. It contains details of a UK-listed company our Motley Fool UK analysts are extremely enthusiastic about. They think it’s offering an incredible opportunity to grow your wealth over the long term – at its current price – regardless of what happens in the wider market. That’s why they’re referring to it as the FTSE’s ‘double agent’. Because they believe it’s working both with the market… And against it. To find out why we think you should add it to your portfolio today… Click here to get access to our presentation, and learn how to get the name of this 'double agent'! More reading How I’d double my money investing in stocks and shares Should I buy Scottish Mortgage Investment Trust at the current price? Scottish Mortgage Investment Trust: should I buy after SMT’s recent 25% gain? 2 FTSE 100 stocks I’d buy right now if I had £1,000 to invest Why I think the Scottish Mortgage Investment Trust share price will rise again John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Charlie Keough owns shares in F&C Investment Trust and Scottish Mortgage Investment Trust. The Motley Fool UK has recommended ASML. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post 2 investment trusts to buy in May appeared first on The Motley Fool UK.
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  26. Scottish Mortgage Investment Trust shares are falling: are they priced to buy? (16/03/2021 - The Motley Fool UK)
    Over the last month, Scottish Mortgage Investment Trust (LSE: SMT) shares have fallen by about a fifth. The investment trust run by Ballie Gifford had been one of the standout performers in 2020. Fears of inflation, a US tech sell-off and investors favouring Covid recovery stocks have, I think, all combined to send the share price lower – for now at least. It’s worth remembering that even after the recent fall, over the last 12 months, the shares are up about 90%. Long-term investors have still done well by holding the shares. The question now is would I add the shares to my portfolio, or do I expect they’ll fall further? Stick or twist on Scottish Mortgage Investment Trust shares? That’s a difficult question to answer because it seems factors outside of the trust’s control are dictating the share price performance. By this I mean investors are turning away from growth stocks, which the trust is well known for, and moving towards Covid recovery and value stocks. That alongside fears of inflation that seem to have hit tech stocks – especially in the US. Again though, this factor is outside of the control of the trust’s managers.  However, I’m less interested in the macro picture and would prefer to pick stocks based on their potential future performance. If I hold stocks for the long term, the current machinations of the economy are of relatively little importance. The challenges and the opportunities  The challenge therefore for Scottish Mortgage is to show that its big future technology and innovation bets will pay off for investors. We know valuations of tech shares have in some cases become very stretched. Yet that doesn’t mean Scottish Mortgage is necessarily overpriced. What’s clear is that the managers are highly regarded and the investment house, Baillie Gifford, is supportive of their strategy. It has in place the team to research innovative companies. The top holdings of the trust are Tencent (6.5%), Illumina (6.1%) and Amazon (5.9%). Tesla has been cut down to 5.1% and is now the fourth-largest holding. The ongoing charge at 0.36%, according to the January factsheet, is very low for an actively-managed investment. Given that costs can really eat into investment returns, I see this as a major positive. Growth in the US and Chinese markets could also prove to be a catalyst, as many of the holdings are tech companies from those two powerhouse economies. We know China is already well ahead in recovering from Covid and the US is pumping stimulus into its economy. That should prop up asset prices, including shares. It’s easy to be critical of a focus on big tech due to how share prices have flown up over the last year. However, Scottish Mortgage has a great track record, good shareholder communications and a stable management team. Overall, while I’m not that keen to pile in, the move to a discount to its net asset value, along with cheap charges and innovative holdings could make it a share that will bounce back this year. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Why I’d buy Scottish Mortgage Investment Trust today Why I’m buying Scottish Mortgage Investment Trust shares today 2 factors I think affect the Scottish Mortgage Investment Trust share price Scottish Mortgage shares have fallen over 15% in 1 month. Here’s what I’m doing Will the Scottish Mortgage Investment Trust price recover in 2021? Andy Ross owns no share mentioned. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK owns shares of and has recommended Amazon and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Scottish Mortgage Investment Trust shares are falling: are they priced to buy? appeared first on The Motley Fool UK.
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  27. Here’s why I’m still buying Scottish Mortgage Investment Trust (30/05/2021 - The Motley Fool UK)
    The rotation from growth to value stocks by investors over the last few months has hit the Scottish Mortgage Investment Trust‘s (LSE: SMT) share price. On Friday, it closed at 1,195p. That’s 15% off the all-time high it hit earlier in 2021. Aside from the valuations of holdings such as Tesla taking a (long overdue) tumble, SMT has faced another recent setback in the announcement that co-manager James Anderson will be retiring. As a long-term investor, however, I’ve been buying more of the investment trust in May. Here’s why. Disruption…on the cheap While the departure of Anderson is a shame, it’s not a complete surprise. A 21 year-stint (22 by the time he actually leaves) is a long time to manage the same fund. The need for fresh blood and new investment ideas is both inevitable and healthy. Notwithstanding this, I’m reassured that Scottish Mortgage Investment Trust’s other manager, Tom Slater, is staying put. This should make the eventual succession process a lot smoother.   SMT’s low ongoing charge (0.36%) also remains a big pull for me. This is a very cheap way of getting access to some of the most disruptive growth stocks in the world. It’s even on par with many passively-managed exchange-traded funds. Personally, I’m a big fan of having both active and passive elements to my portfolio so long as the fees charged by the latter can be justified. I don’t think this has ever been a problem when it comes to the Scottish Mortgage Investment Trust. It’s climbed 359% in value over the last five years. Sure, there’s no guarantee that the share price won’t continue to wobble. Concerns over inflation mean that risky, ‘blue sky’ stocks might remain out of favour. Many investors will also be looking to capitalise on reopening opportunities as vaccination programmes make an impact. Previously out-of-favour sectors such airlines, pub chains and high street retailers are back on buy lists. On this front, I’m taking a balanced approach. Some of my money is invested in stocks that I think could benefit from a return to normality. But sell my holding in a trust that could still provide great returns for many years to come? Absolutely not! Also on my shopping list SMT isn’t the only investment trust I’ve been buying in May. I’ve also been adding to my already-sizeable stake in Smithson Investment Trust (LSE: SSON). Like Scottish Mortgage, Smithson’s share price has been a bit volatile in recent months. Since its aim is only to invest in high-quality small and mid-cap firms, that’s not really surprising. Most of these rarely trade on cheap valuations. One can’t ignore the possibility that some early investors may be keen to bank profits. Since launch in October 2018 to the end of April 2021, Smithson achieved a quite brilliant annualised return of 25.4%.  This is not to say that there’s aren’t a few things to bear in mind. While the ongoing charge of 0.9% certainly isn’t the highest in the market, it’s still high. Regardless of how manager Simon Barnard performs from here, that fee will always be due. One also needs to bear in mind that relatively youthful Barnard doesn’t have a long track record.  This, however, is a risk I’m comfortable with. With its premium to net asset value dropping in recent weeks, I’m taking advantage while I can.  “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading What’s next for the Scottish Mortgage share price? Scottish Mortgage Investment Trust: should I invest now? 2 FTSE 100 tech stocks I’d buy today Hargreaves Lansdown investors are buying SMT shares. Should I invest too? Is the Scottish Mortgage Investment Trust a bargain? Paul Summers owns shares in Scottish Mortgage Investment Trust and Smithson Investment Trust. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Here’s why I’m still buying Scottish Mortgage Investment Trust appeared first on The Motley Fool UK.
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  28. Scottish Mortgage Investment Trust: should I buy after SMT’s recent 25% gain? (30/04/2021 - The Motley Fool UK)
    Scottish Mortgage Investment Trust (LSE: SMT) is one of the UK’s most popular investment trusts. SMT has been a massive winner since the 2007-09 market crash. But today’s stars so often become tomorrow’s dogs, so would I buy SMT shares now? Scottish Mortgage Investment Trust: a FTSE 100 winner Congratulations to anyone who invested in Scottish Mortgage Investment Trust shares at almost any point since 2009. Since the market lows of March 2009, SMT stock has been a FTSE 100 superstar. Over three and five years, it’s ranked #3 in the Footsie. Over two years, it came in second and over the past year, it ranks at #9. Indeed, SMT shares have been a winner over eight timescales, ranging from one week to five years. 1 week 2.0% 1 month 16.6% 3 months 1.4% 6 months 25.8% 1 year 91.3% 2 years 139.8% 3 years 169.1% 5 years 388.7% SMT skyrockets since 2009 Looking at the chart of the Scottish Mortgage Investment Trust share price since 1991, a clear picture emerges. From 1991 until 2009, the performance of the share price was good, but unremarkable. It gained mostly in line with other actively managed global funds. After the Global Financial Crisis (GFC) of 2007-09, SMT showed no obvious signs of the massive growth to follow. But then SMT shares lifted off on a stratospheric trajectory. In March 2009, as the world bounced back from the GFC, one Scottish Mortgage Investment Trust share cost under 60p. But under the stewardship of fund managers James Anderson (manager/joint manager since 2000) and Tom Slater (joint manager since 2015), the SMT share price exploded. In the first leg of this sustained surge, it skyrocketed. On 19 February 2020, Scottish Mortgage Investment Trust stock closed at 659p. That’s 11 times the price of 11 years earlier, making SMT a proverbial ‘ten-bagger’ stock. Then along came the Covid-19 pandemic. As it spread globally, share prices plunged. One month on, the SMT share price had collapsed, hitting an intra-day low of 451.8p before closing at 477.6p on 19 March 2020. But after that, the share price has roared back to even greater heights. On 15 February 2021, it hit a record closing high of 1,415p. The next day, it peaked at an all-time intra-day high of 1,418.57p. In just 11 months, the SMT share price had almost tripled. It gained 196.3% from its 2020 low to its 2021 closing high. That’s a comeback to rival Lazarus! Would I buy SMT shares today? With Scottish Mortgage Investment Trust shares so highly valued, the SMT share price has been volatile recently. As I write, the stock trades at 1,262.5p. That’s almost a quarter (24.5%) above its 2021 closing low of 1,017p, hit on 5 March. The reason for this renewed volatility is that SMT is heavily invested in US and Chinese tech stocks. These have been yo-yoing wildly this calendar year. As a value investor for 35 years, I’ve learnt many painful lessons. One is that share prices can’t keep rising forever, just as trees don’t grow to the sky. Another is reversion to the mean (‘what goes up, must come down’). A third is to avoid highly priced stocks during euphoric bull markets. Having grown to a mighty £18bn market value, I can’t see the Scottish Mortgage Investment Trust’s remarkable winning streak continuing. Hence, I won’t buy this star share, for fear it could fall back to earth. Now watch Mr Market prove me wrong… One stock for a post-Covid world… Covid-19 is ripping the investment world in two… Some companies have seen exploding cash-flows, soaring valuations and record results… …Others are scrimping and suffering. Entire industries look to be going extinct. Such world-changing events may only happen once in a lifetime. And it seems there’s no middle ground. Financially, you’ll want to learn how to get positioned on the winning side. That’s why our expert analysts have put together this special report. If the pandemic has completely changed our lives forever, then they believe that this stock, hidden inside the tech-heavy NASDAQ, could be set for monstrous gains… Click here to claim your copy now — and we’ll tell you the name of this US stock… free of charge! More reading 2 FTSE 100 stocks I’d buy right now if I had £1,000 to invest Why I think the Scottish Mortgage Investment Trust share price will rise again Cliffdarcy has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Scottish Mortgage Investment Trust: should I buy after SMT’s recent 25% gain? appeared first on The Motley Fool UK.
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  29. Should I buy Tesla shares or the Scottish Mortgage Investment Trust? (03/03/2021 - The Motley Fool UK)
    Tesla (NASDAQ: TSLA) shares are one of the market’s hot investments. The company has made some of its investors incredibly rich over the past few years as it helped revolutionised the global electric vehicle market. Some analysts believe its growth is only just getting started. With that in mind, I’ve been considering the stock from my portfolio after recent declines. However, there’s always going to be the risk the business doesn’t live up to lofty Wall Street expectations. As such, I’ve also been reviewing the Scottish Mortgage Investment Trust (LSE: SMT) to see if it could be a substitute for the American vehicle maker in my portfolio. Tesla shares on offer?  Over the past few weeks, shares in Tesla have dropped from their all-time high. Some investors believe this could be a buying opportunity, based on the company’s long-term potential.  The problem with this opinion is the fact it’s impossible to predict the future. Tesla has revolutionised the electric vehicle market over the past decade, and its shareholders have reaped substantial rewards as a result. Nevertheless, past performance should never be used to guarantee future potential. There’s no guarantee Tesla’s sales and earnings will continue to grow. The risks to the company’s success are increasing.  While the business has the first-mover advantage, and its vehicles are seen as the holy grail of electric car development in some quarters, its competitors are catching up. The next 12 months are set to be the busiest ever for electric vehicle launches. While Tesla is planning to launch a selection of new models, it will face stiff competition from the likes of Volvo, VW, Fiat and Mercedes.  This growing competition suggests that while Tesla may be able to maintain its growth rate in 2021, it’s by no means guaranteed.  That’s why I’ve been considering the Scottish Mortgage Investment Trust.  Scottish Mortgage Investment’s key advantage  Until January this year, when the company sold some of its Tesla shares, Scottish Mortgage was the electric vehicle firm’s second-largest shareholder, after the founder Elon Musk. The holding is still the largest in the £17bn trust’s portfolio.  However, alongside Tesla, the fund also owns a portfolio of public and private tech companies. I believe this provides some much-needed diversification. For example, one of the trust’s top 10 holdings is NIO Inc, a Tesla competitor. With competition in the electric vehicle sector growing, I don’t think it makes sense the back just one horse. Scottish Mortgage Investment’s diversified approach seems to provide the best of both worlds. The trust will benefit significantly if Tesla continues to outperform. If the group starts to struggle, the impact on the organisation will be limited.  Unfortunately, this focus on technology could also be a drawback. If tech stocks start to struggle, the trust may do so as well. In the second half of February, the trust lost more than 20% of its value for this reason. That’s something investors need to consider. I would only own Scottish Mortgage as part of a diversified portfolio for that reason.   Therefore, I’d buy Scottish Mortgage today and avoid investing in Tesla shares directly. Another advantage of investing in the UK-listed trust is it’s easier for UK investors to buy and sell. There’s no need to worry about foreign exchange fees or other challenges by investing directly in an overseas market.  “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading 2 of the best UK shares to buy this March Should I buy Tesla shares after the US tech sell-off? Scottish Mortgage shares are falling. Here’s why I’d buy The Scottish Mortgage share price: here’s what I’m doing now The Unilever share price is struggling. I’d buy this FTSE 100 stock now! Rupert Hargreaves owns no share mentioned. The Motley Fool UK owns shares of and has recommended Tesla. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Should I buy Tesla shares or the Scottish Mortgage Investment Trust? appeared first on The Motley Fool UK.
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  30. Scottish Mortgage Investment Trust isn’t all I’ve been buying (22/03/2021 - The Motley Fool UK)
    Just over a month ago, I said I’d continue buying Scottish Mortgage Investment Trust even if its share price were to temporarily reverse. As luck would have it, an opportunity came about only a few days later. Between February 15 and March 5, SMT’s valuation dropped more than 30%. Now, this fall wasn’t a complete surprise considering that frothy tech stocks make up much of its portfolio. Nevertheless, I duly jumped at the chance to top up my holding. But the Scottish Mortgage isn’t the only investment trust I’ve been buying more of in recent weeks.  FTSE 250 stunner  In sharp contrast to Scottish Mortgage Investment Trust’s 112-year history, Smithson Investment Trust (LSE: SSON) is still in its infancy. Part of the Fundsmith stable, SSON has only been around since October 2018. Even so, a quick look at its performance should explain why it has already gained a market cap of £2.4bn and inclusion in the FTSE 250.  According to its latest factsheet, Smithson has achieved an annualised return of 21.3% since inception. However, quite a bit of this stunning return can be attributed to how the trust performed last year. Over the course of 2020, the share price increased by 31.7%. For comparison, Smithson’s benchmark — the MSCI World Small and Mid Cap Index rose by 12.2%. Even more startling was that cash climbed just 0.3% in value — further evidence that holding anything in cash beyond a ‘rainy day’ fund will never make me rich.  This result is yet another ‘win’ for Terry Smith. The strategy adopted by Smithson is identical to that of his much-larger Fundsmith Equity Fund, even though he’s not involved in the day-to-day running of the former. In other words, it buys quality companies at good prices and then does nothing. In practice, this means having exposure to UK firms such as Fevertree, Domino’s Pizza and Rightmove. US-listed consumer credit business Equifax and laser-specialist IPG Photonics also make the cut.  But can this form continue? In the near term, it’s impossible to say and that’s a risk for buyers of this trust. Just like individual company stocks, the performance of investment trusts can vary wildly from year to year. Indeed, manager Simon Barnard has already sought to quell expectations by suggesting that 2020’s performance will likely prove an anomaly. This seems very sensible to me. After all, almost half of Smithson’s portfolio is made up of technology stocks and that means volatility. As anyone with an interest in the stock market will probably be aware, these aren’t the flavour of the month at the moment. Thanks to the gradual rollout of coronavirus vaccines, it’s beaten-down leisure and travel stocks that are now attracting more attention. Then again, SSON’s share price has held up far better than that of Scottish Mortgage Investment Trust. At the close of play last Friday, the former was only 5% below where it stood at the start of the year. Sure, a lot of this may be down to Smithson being geared towards investing in small and mid-cap companies. Unlike Scottish Mortgage, it has no interest in the likes of Tesla and Amazon. Nonetheless, I think this relative stability bodes well, especially for those investors who don’t want to spend too much time nursing their portfolio. With a proven investment approach and a relatively young management team, I’m backing Smithson for the long term.  One stock for a post-Covid world… Covid-19 is ripping the investment world in two… Some companies have seen exploding cash-flows, soaring valuations and record results… …Others are scrimping and suffering. Entire industries look to be going extinct. Such world-changing events may only happen once in a lifetime. And it seems there’s no middle ground. Financially, you’ll want to learn how to get positioned on the winning side. That’s why our expert analysts have put together this special report. If the pandemic has completely changed our lives forever, then they believe that this stock, hidden inside the tech-heavy NASDAQ, could be set for monstrous gains… Click here to claim your copy now — and we’ll tell you the name of this US stock… free of charge! More reading What is a trust fund and how does it work? Adding US tech stocks to my portfolio right now: yes or no? What is a deferred pension? Why I’m buying UK value shares like these, right now How to get free office software if you run a small business Paul Summers owns shares in Scottish Mortgage Investment Trust, Fundsmith Equity and Smithson Investment Trust. The Motley Fool UK has recommended Dominos Pizza, Fevertree Drinks, and Rightmove. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Scottish Mortgage Investment Trust isn’t all I’ve been buying appeared first on The Motley Fool UK.
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  31. As the Scottish Mortgage Investment Trust (SMT) share price falls, here’s my next move (12/05/2021 - The Motley Fool UK)
    Since the start of the year, the Scottish Mortgage Investment Trust (LSE: SMT) share price has fallen 10%. It is still up 56% over the past year, so many long-term investors have had a good ride. But recent Scottish Mortgage Investment Trust share price performance seems underwhelming. So what’s behind the SMT share price fall and what would I do about it? US tech pullback One reason the SMT share price has dropped lately is a fall in the shares of the US tech names it owns. SMT publishes a full list of its holdings on its website. Take Zoom as an example. Shares in the videoconferencing provider have slumped 20% this year. That’s because more normal working patterns threaten to dampen demand. SMT holds 1m shares in Zoom. A fall in Zoom’s share price therefore negatively affects the value of SMT’s portfolio. But with a 73% increase over the past year, Zoom has performed well over the longer term. China tech regulatory concerns Challenges to the Scottish Mortgage Investment Trust share price are not limited to the twists and turns of the US stock market. A second factor concerns a regulatory clampdown on tech firms in China. SMT’s seventh-biggest holding is Chinese delivery company Meituan. That business seems to be embroiled in a potential government dispute in China. Its shares have fallen 15% this year, despite returning 121% over the past year. Relevance for the SMT share price To understand why this matters, consider the structure of the Scottish Mortgage Investment Trust. The company does not operate businesses. It is not designing video-conferencing software or employing delivery drivers. Instead it is a collective investment vehicle. It pools money from investors that it uses to buy shares. That means its performance is impacted by how well the companies it holds perform. Zoom or Meituan falling, for example, is a risk to the SMT share price. It effectively reduces the value of SMT. Its share price is not exactly correlated to its net asset value. But in broad terms if the net asset value falls or rises, the share price will likely roughly follow. Yet the fact that the Scottish Mortgage Trust share price is affected by such share price movements is actually positive in one way, as far as I am concerned. Most people in the UK have never heard of Meituan. If I was investing on my own I would not consider it as a choice. But SMT management has scouted out companies like Zoom and Meituan. And despite recent bumps, the portfolio returns overall have been strong. That is why the SMT share price is up 56% over a year and 326% over five years. My next move Given its exposure to tech stocks, I would not be surprised if the Scottish Mortgage Trust share price gyrates a bit more quite soon. The tech sector is going through some turbulence. Additionally, the company’s foreign holdings expose it to currency fluctuation risks. But with its diversified portfolio, I see SMT as an interesting way to get exposure to emerging companies. I will keep an eye on the share price in case it falls to what I regard as an attractive entry point. It is not there yet, however. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading The ‘smell test’: when an investment doesn’t feel right 2 investment trusts to buy in May How I’d double my money investing in stocks and shares Should I buy Scottish Mortgage Investment Trust at the current price? Scottish Mortgage Investment Trust: should I buy after SMT’s recent 25% gain? christopherruane has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. christopherruane has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post As the Scottish Mortgage Investment Trust (SMT) share price falls, here’s my next move appeared first on The Motley Fool UK.
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  32. 2 top UK shares to buy right now (09/07/2021 - The Motley Fool UK)
    I reckon that Scottish Mortgage Investment Trust (LSE: SMT) and Robert Walters (LSE: RWA) are two top UK shares to buy right now. I think both have further growth potential despite currently trading at high levels. Here’s why I’d snap up these stocks. The investment trust I’ve been bullish on Scottish Mortgage Investment Trust for some time. The main reason is that it has a proven long-term track record, which has consistently delivered. I like to back a stock where there’s evidence that the business model is working. In this case, the fund managers have demonstrated their stock picking abilities over several years. Since the portfolio has a tech bias, last year was a stellar year for the investment trust. Of course, there’s no guarantee this past performance will be replicated in the the future. But it gives me some encouragement that the fund managers know what they’re doing. I also think this is a top UK share to buy right now because of the portfolio diversification. I’ve mentioned this before that I’m getting exposure to listed companies but also a pool of private tech companies. It’s worth noting here that as a retail investor, it would be hard for me to invest in unlisted companies directly. But I can get this exposure through Scottish Mortgage. What’s more these private companies have the potential to become public. And there are several examples of this happening in the trust. Again, I put this down to the investment skills of the fund managers. Earlier this year, the tech sell-off hit Scottish Mortgage shares and this could happen again. As I said, there’s no guarantee that its previous impressive performance will continue in the future. The recruiter On Wednesday, Robert Walters announced its second quarter trading statement for 2021. This comes ahead of its half-year results due on 27 July. I’ve been bullish on this stock and the Q2 2021 numbers were strong. Trading momentum across all regions during the period was positive. The recruiter even said that “profit for the full-year is now expected to be significantly ahead of the level signalled in our recent 11 June trading update.” As a reminder, it stated in its last announcement that it expected full-year profit before tax “to be materially ahead of current market expectations.” So the fact that the company still remains on track is encouraging to me. It also indicated that the interim results at the end of this month should be positive too. But of course, this is just me speculating. I’ll have to wait and see. What I also like about Robert Walters is that it’s in a strong financial position. The balance sheet looks in good shape with a net cash position of £113m as at the end of June. Couple this with a good economic recovery following the pandemic, and I think this should push the stock price higher. But if there are any Covid-19 delays, then businesses aren’t likely to recruit employees, which could impact the Robert Walters share price. Companies could also be cautious on hiring as the coronavirus variants continue to spread. Despite these concerns, I think this is a great UK share to buy for my portfolio right now. The post 2 top UK shares to buy right now appeared first on The Motley Fool UK. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading Robert Walters upgrades profit forecasts, Wincanton warns of driver shortages Space stocks: time to buy? Scottish Mortgage Investment Trust is the No. 1 HL buy. Time to join? Will the Scottish Mortgage Investment Trust share price keep rising? 2 British stocks I’d buy now Nadia Yaqub has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  33. Scottish Mortgage Investment Trust has crashed. Should I buy now? (05/03/2021 - The Motley Fool UK)
    The Scottish Mortgage Investment Trust (LSE: SMT) share price has crashed in the last few weeks. After rising to around 1,420p in mid-February, SMT has fallen to 1,038p. That represents a fall of around 27%. However, over the last 12 months, it’s still up about 80%. Here, I’m going to look at why the share price has crashed recently. I’m also going to discuss whether I’d buy the trust for my own portfolio now. Inflation concerns hit SMT’s share price The main reason Scottish Mortgage’s share price has fallen recently is that high-growth stocks (which SMT is full of) have pulled back sharply over the last few weeks due to concerns over inflation. Right now, many large institutional investors are worried that inflation could lead to higher interest rates. As a result, they’ve dumped bonds (which perform poorly when rates are rising) and this has resulted in a sharp rise in long-term bond yields. Higher long-term yields reduce the appeal of owning high-growth stocks because they lower the present value of future earnings. That means many investors have sold growth stocks and has hit the SMT share price. Scottish Mortgage stocks have been hit hard A second reason SMT has fallen is that many of its top holdings have been hit particularly hard in the recent sell-off. Tesla, for example, which was the fourth largest holding in the trust at the end of February, has fallen around 30% since its January high. NIO, which was the fifth largest holding at the end of February, has fallen around 40% since its January high. Given that around 10% of the trust was invested in these two stocks at the end of last month, these pullbacks will have had a big impact on the share price. Other top 20 holdings such as Zalando, Nvidia, and Spotify have also experienced significant share price declines. Would I buy today? After the recent share price fall, I think Scottish Mortgage Investment Trust is worth a closer look. I may buy a few more SMT shares for my own portfolio if the share price weakness persists. Having said that, there’s still risk to the downside, in my view. Inflation concerns could linger for a while. If economic data (such as today’s US non-farm payroll report) is strong in the near term, we may see another leg down for high-growth stocks. This could hit the SMT share price further. Meanwhile, even after the recent pullback in growth stocks, plenty of SMT holdings continue to trade at elevated valuations. NIO, for example, is still valued at around $1.4m per car sold in 2020. This means there’s valuation risk. Overall, I’m bullish on the long-term investment case here, especially after the recent pullback. However, I continue to see SMT as a more speculative holding, due to the fact many of its holdings are high-growth stocks that trade at lofty valuations. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading 2 UK growth stocks that would have doubled my money if I’d invested 2 years ago Should I buy Tesla shares or the Scottish Mortgage Investment Trust? 2 of the best UK shares to buy this March Should I buy Tesla shares after the US tech sell-off? Scottish Mortgage shares are falling. Here’s why I’d buy Edward Sheldon owns shares in Scottish Mortgage Investment Trust. The Motley Fool UK owns shares of and has recommended NVIDIA, Spotify Technology, and Tesla. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Scottish Mortgage Investment Trust has crashed. Should I buy now? appeared first on The Motley Fool UK.
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  34. Is the Scottish Mortgage Investment Trust a bargain? (22/05/2021 - The Motley Fool UK)
    Is the Scottish Mortgage Investment Trust (LSE: SMT) a good buy today? This is a question I have been asking myself recently after the shares declined more than 20% from their all-time high, reached in the middle of February. At one point at the beginning of March, the stock had fallen 30% in just two weeks. These numbers might look bad, but they need to be put into perspective. Over the past 12 months, shares in the investment trust have returned 54%, even after including the recent decline.  I think it’s pretty clear why the stock has performed so badly over the past few weeks. Investors have been shunning US technology companies recently due to valuation concerns. As Scottish Mortgage has a significant allocation towards US tech stock, this has impacted the firm’s portfolio.  However, there are a couple of reasons why I’m not too worried about the recent decline in US tech stock valuations. Scottish Mortgage Investment Trust diversification  The Scottish Mortgage Investment Trust recently announced that it had sold 80% of its holding in Tesla over the past 12 months. This was once its second-largest holding. The manager has also been divesting other Silicon Valley tech socks and reinvesting the proceeds elsewhere.  It is particularly interested in China. The trust’s top holding is now Tencent, multinational technology conglomerate holding company. Another top holding is food delivery enterprise Meituan. As the group has been increasing its exposure to China, it has sold its shares in Facebook, Google’s parent company Alphabet and cut its stake in Amazon. According to my calculations, the Scottish Mortgage Investment Trust’s portfolio now has a 22% weighting to Chinese equities and a 37% weighting to US stocks. These exclude private investments, which constitute a small, but not unimportant part of the portfolio.  Difficult to value  Unfortunately, while the company does have exposure to some of the world’s fastest-growing and most recognisable technology businesses, it isn’t easy to value. Early-stage private technology businesses and even public businesses can also be incredibly volatile and difficult to own. So, even though the trust has put in a staggering performance over the past 12 months, there’s no guarantee this will continue. Competition is growing in the technology sector, which may hold back growth at some of the sector’s largest enterprises.  Therefore, the Scottish Mortgage Investment Trust may not be suitable for all investors.  However, I think technology is playing an increasing role in our lives. The trust has an excellent track record of picking enterprises in the sector. As such, while I am well aware that it may not always be right, I would buy the investment company to invest in the global technology sector in general. It might not be undervalued today, but I think many companies in its portfolio will be worth substantially more in 10 to 20 years. So on that basis, it does look cheap.  “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading 1 FTSE 100 investment trust from my best stocks to buy now list The Scottish Mortgage Investment Trust (SMT) share price is falling. What’s going on? I’d invest £10k in the Scottish Mortgage Investment Trust As the Scottish Mortgage Investment Trust (SMT) share price falls, here’s my next move The ‘smell test’: when an investment doesn’t feel right Rupert Hargreaves owns no share mentioned. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. The Motley Fool UK owns shares of and has recommended Alphabet (C shares), Amazon, Facebook, and Tesla and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Is the Scottish Mortgage Investment Trust a bargain? appeared first on The Motley Fool UK.
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  35. 2 FTSE 100 tech stocks I’d buy today (26/05/2021 - The Motley Fool UK)
    When I think of the FTSE 100 index, tech stocks don’t spring to mind. But if I look closely at its constituents, there are two shares I’d buy today that are tech-focused. Sage Sage (LSE: SGE) specialises in accountancy software for small and medium-sized businesses. I first covered the company in March and I reckon the shares have potential. So far in 2021 the stock is up almost 15%, but over the last 12 months it’s down 3%. The company is undergoing a transformation and the business is being simplified. By this I mean that it’s selling its non-core businesses. The main focus is now on its cloud-based products. These have proved useful especially during the pandemic when most people have been working from home. The other change is that the FTSE 100 company is working hard to boost its recurring revenue. I like this about Sage as it gives me sales stability and visibility for the future. The recent interim results were positive. The main thing for me was that organic recurring revenue increased by 4.4% to £811m. This highlights the company’s success at acquiring new customers, as well as migrating existing ones to its cloud software. What I also like is that Sage has a strong financial position. For the six months ended 31 March, the net debt position had reduced to £96m from £238m a year earlier. The outlook seems rosy to me. It now believes organic recurring revenue growth for the 2021 financial year to be towards the top end of its guidance of 3% to 5%. Sage also highlighted that it expects “margins to trend upwards over time”. But there are risks. There’s no guarantee that the transition to a subscription business model will be successful. It’s likely to incur costs in the process, which could impact profitability. Scottish Mortgage It’s been a difficult 2021 so far for this FTSE 100 stock. Scottish Mortgage Investment Trust (LSE: SMT) is a tech-focused trust and so it was caught up in the inflation fear sell-off earlier this year. But I’m looking past this and looking at the bigger picture. This is an actively-managed portfolio of public and private companies. This means the fund managers are experienced in selecting stocks and they have a strong track record. The lead fund manager, James Anderson is retiring soon, but I’m not overly concerned. Baillie Gifford, the asset manager behind Scottish Mortgage has a good transitioning process. So I’m confident that the remaining fund managers will be able to run the portfolio just as well. While the trust has exposure to some leading listed tech firms, I personally think the key gem is its private or unquoted stocks. What I like is that it has had great success with the managers having correctly identified private companies that have then gone on to float. I think this is pretty impressive and it’s important to note that investors are paying for investment expertise with this FTSE 100 share. Again though, there are risks with Scottish Mortgage. Of course, there’s no guarantee the strong performance will continue. Another tech sell-off could impact the stock. And the investment trust’s private company portfolio does have exposure to some riskier investments, which may be unsuccessful. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading Hargreaves Lansdown investors are buying SMT shares. Should I invest too? Is the Scottish Mortgage Investment Trust a bargain? 1 FTSE 100 investment trust from my best stocks to buy now list The Scottish Mortgage Investment Trust (SMT) share price is falling. What’s going on? UK shares: 3 ways I’d invest £3k today Nadia Yaqub has no position in any of the shares mentioned. The Motley Fool UK has recommended Sage Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post 2 FTSE 100 tech stocks I’d buy today appeared first on The Motley Fool UK.
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  36. 3 reasons why I’d buy £1,000 worth of Scottish Mortgage Investment Trust shares today (12/03/2021 - The Motley Fool UK)
    One of the standout shares from 2020 was Scottish Mortgage Investment Trust (LSE:SMT). Although it’s had a track record of good performance, last year really put the fund on the map. SMT shares doubled in value in 2020, causing a lot of raised eyebrows. After all, the investment trust isn’t a conventional FTSE 100 stock and a fund might not normally be expected to deliver such big returns over a year. But if I had £1,000 that I was looking to deploy right now, I think SMT offers good value for me. Exposure to US tech The first reason why I’d buy today is because of the short-term dip we’ve seen over the past few weeks. SMT shares are actually down almost 15% over the past month. This can be attributed to the sell-off in US tech. I wrote a piece earlier this week that explained why we’re seeing such a sell-off. In my opinion, there’s still value to be had in selective US tech shares as long as I do my research. SMT is run by Baillie Gifford, an experienced investment management house. So I don’t doubt it has done its research and believes the large US holdings it has (such as Tesla and Amazon) are good for the long term. As a result, I’m happy to buy SMT shares now. I can’t always time the market to perfection. So SMT shares may continue to drop in the coming days and weeks. But the fact that I’ve already been able to buy at 15% lower than a month ago is enough of a discount to get me excited. Pros but also some cons with SMT shares  A second reason why I’d buy SMT shares at the moment is because of the heavy weighting towards consumer cyclicals. This accounts for 44.2% of the stocks held within the investment trust, as of the end of 2020. ‘Consumer cyclical’ basically refers to stocks that follow the cycle of the economy. For example, housing. Construction and estate agents typically do better during booms than during recessions.  I like the fact that SMT has a large exposure to consumer cyclicals at the moment. I think the global economy is getting primed for a strong cycle out of recession and into growth over the next year or so. These stocks should pull the performance of the fund higher, raising the SMT share price in the process. The final reason I like SMT shares is the diversification it gives me in my portfolio. At the moment, I think that diversification is key given the uncertainty in the market. Some of my growth shares aren’t performing that well, but other income stocks are exceeding my expectations. SMT sits in-between this, given that it’s essentially an actively managed mutual fund. There are risks in buying the stock now though. If US tech shares really do go even lower, then SMT shares will follow suit given their exposure to that area. Secondly, the share price doesn’t always perfectly track the actual net asset value of the stocks held within the fund. So I could end up paying a premium above the actual value of the stocks, which isn’t ideal at all. But the bottom line is that I think SMT shares look attractive after the dip, so I’d buy them now. A Top Share with Enormous Growth Potential Savvy investors like you won’t want to miss out on this timely opportunity… Here’s your chance to discover exactly what has got our Motley Fool UK analyst all fired up about this ‘pure-play’ online business (yes, despite the pandemic!). Not only does this company enjoy a dominant market-leading position… But its capital-light, highly scalable business model has previously helped it deliver consistently high sales, astounding near-70% margins, and rising shareholder returns … in fact, in 2019 it returned a whopping £150m+ to shareholders in dividends and buybacks! And here’s the really exciting part… While COVID-19 may have thrown the company a curveball, management have acted swiftly to ensure this business is as well placed as it can be to ride out the current period of uncertainty… in fact, our analyst believes it should come roaring back to life, just as soon as normal economic activity resumes. That’s why we think now could be the perfect time for you to start building your own stake in this exceptional business – especially given the shares look to be trading on a fairly undemanding valuation for the year to March 2021. Click here to claim your copy of this special report now — and we’ll tell you the name of this Top Growth Share… free of charge! More reading I’d still buy Scottish Mortgage after its 25% drop, but with this proviso Scottish Mortgage is down 20%: should I buy today? Why has the Scottish Mortgage share price crashed? Can The Scottish Mortgage Investment Trust and Baillie Gifford American Fund recover? Scottish Mortgage Investment Trust has crashed. Should I buy now? John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. jonathansmith1 has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Amazon and Tesla and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post 3 reasons why I’d buy £1,000 worth of Scottish Mortgage Investment Trust shares today appeared first on The Motley Fool UK.
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  37. I’d invest £10k in the Scottish Mortgage Investment Trust (15/05/2021 - The Motley Fool UK)
    The Scottish Mortgage Investment Trust (LSE: SMT) has lost around 25% of its value since hitting an all-time high of 1,415p around the middle of February.  However, as a long-term investor, this doesn’t concern me at all. In fact, by taking a step back, it becomes clear how insignificant this decline is in the grand scheme of things. Over the past 12 months, the stock has returned nearly 55%.  While past performance should never be used as a guide to future potential, based on Scottish Mortgage’s past successes, I think the recent decline in the trust’s share price could be a fantastic buying opportunity.  Scottish Mortgage opportunity When I refer to the investment trust’s past successes, I’m not referring to its stock price. Instead, I’m pointing to the firm’s track record picking investments.  Over the past decade, the investment company has earned a reputation as an astute growth investor. Accordingly, it searches the market for the best growth stocks. These aren’t just companies with high growth rates. The investment manager is looking for enterprises that have a substantial competitive advantage. This can indicate the businesses selected will continue to grow year after year and get better at what they do.  Picking these sorts of companies isn’t easy. Most professional investors fail. However, Scottish Mortgage has succeeded because it has such a strong reputation, it’s easy for the trust to build positions in firms before they even go public.  For example, in the middle of March, the investment manager received a boost when one of its private holdings, Stripe, achieved a record $95bn valuation.  Key advantages  As a closed-ended investment company, Scottish Mortgage also has advantages. Unlike other funds, it doesn’t have to buy and sell securities to meet inflows and outflows. It also has more flexibility where it can invest and for how long. The firm has held a stake in Amazon for nearly two decades.  It can also invest where some investors might be unwilling, or unable, to invest. Some 24% of the portfolio is currently invested in Chinese securities, with 37% in US stocks. Its largest holding is Chinese tech giant Tencent, and the trust’s managers believe “the pace of innovation at scale in China now exceeds anything we can find in the rest of the world.“ All of these advantages have helped the firm achieve the record it has over the past five years. It’s returned 322% since May 2016.  I think it would be unreasonable to say I believe the trust can repeat this performance in the years ahead. But I believe the advantages outlined above will persist, which may help Scottish Mortgage pick the market’s next big winners. Of course, success isn’t guaranteed. Like all investment companies, Scottish Mortgage has and will continue to make mistakes. Investing in growth companies can be a risky business. These stocks are also highly volatile. So the trust might not be suitable for all investors.  Nevertheless, as a way to invest in some of the world’s growth champions, I think Scottish Mortgage has an unrivalled offer. That’s why I’d invest £10k in the business right now. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading As the Scottish Mortgage Investment Trust (SMT) share price falls, here’s my next move The ‘smell test’: when an investment doesn’t feel right 2 investment trusts to buy in May How I’d double my money investing in stocks and shares Should I buy Scottish Mortgage Investment Trust at the current price? Rupert Hargreaves has no position in any of the shares mentioned. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK owns shares of and has recommended Amazon. The Motley Fool UK recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon.  Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post I’d invest £10k in the Scottish Mortgage Investment Trust appeared first on The Motley Fool UK.
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  38. Why I think the Scottish Mortgage Investment Trust share price will rise again (18/04/2021 - The Motley Fool UK)
    It’s been an uncertain start to the year for investors in the tech-heavy Scottish Mortgage Investment Trust (LSE: SMT). Although the Scottish Mortgage share price has doubled over the last 12 months, the stock has been volatile in 2021. After hitting a high of 1,418p in February, SMT shares fell to 1,017p before bouncing back to around 1,200p. It’s been a bumpy ride, but I think there are good reasons to expect the shares to return to growth. Good strategy Scottish Mortgage Investment Trust’s strategy is to focus on identifying companies that are disruptive, ambitious, and capable of serious growth. The trust’s managers then take meaningful positions which they aim to hold for at least five years. This strategy has resulted in Scottish Mortgage identifying big winners such as Tesla, Amazon, and Netflix, before many mainstream funds saw the opportunities. With refreshing honesty, SMT’s managers say that they look to add value over five years or more. Over shorter periods, they say that “we don’t see that we can add much more than anyone else”. SMT’s managers get different results because they have a different strategy. This is definitely not a fund that will follow the FTSE 100. Cheaper than it looks? It would be easy to say that the Scottish Mortgage share price has been boosted by the trust’s exposure to expensive tech stocks. However, I’m not sure that’s fair. Yes — some key holdings, such as Amazon and Netflix, trade on more than 50 times forecast earnings. They are expensive, but they also have a long track record of disruptive growth. Today’s prices could look cheap in a few years. Looking elsewhere, some of SMT’s holdings actually look quite reasonably priced to me. For example, the trust’s largest holding is Chinese ecommerce group Tencent. This is currently valued at around 30 times 2021 forecast earnings. I don’t think that’s too expensive, given that Tencent’s profits have grown by around 40% per year since 2015. What about Tesla? SMT has sold some of its Tesla stock, but the electric car maker still accounts for around 5% of the trust’s portfolio. However, even if the Tesla share price fell by 50%, that would still only knock 2.5% off the trust’s book value. Hardly a disaster. Scottish Mortgage share price: a safe bet? For me, SMT’s diverse portfolio is one of its main attractions. I couldn’t easily build a portfolio of global growth stocks by buying them individually. But with SMT, I can buy a single FTSE 100 stock and get the same exposure. I think the long-term prospects for SMT are good. But I can see a couple of risks that could affect performance over the shorter term. One concern is that long-term manager James Anderson is due to retire soon. Anderson has been at the helm of the trust for 21 years, so he’s played a major role in some of its biggest successes. A second risk is that the trust could be hit by a market-wide shift away from growth stocks. I don’t know how likely such an event is, but I can’t rule it out. Would I buy Scottish Mortgage shares today? At the current price, I’d be happy to open a small position. That’s my normal procedure with any new buy — start small, then add as I gain confidence and learn more about the business. A Top Share with Enormous Growth Potential Savvy investors like you won’t want to miss out on this timely opportunity… Here’s your chance to discover exactly what has got our Motley Fool UK analyst all fired up about this ‘pure-play’ online business (yes, despite the pandemic!). Not only does this company enjoy a dominant market-leading position… But its capital-light, highly scalable business model has previously helped it deliver consistently high sales, astounding near-70% margins, and rising shareholder returns … in fact, in 2019 it returned a whopping £150m+ to shareholders in dividends and buybacks! And here’s the really exciting part… While COVID-19 may have thrown the company a curveball, management have acted swiftly to ensure this business is as well placed as it can be to ride out the current period of uncertainty… in fact, our analyst believes it should come roaring back to life, just as soon as normal economic activity resumes. That’s why we think now could be the perfect time for you to start building your own stake in this exceptional business – especially given the shares look to be trading on a fairly undemanding valuation for the year to March 2021. Click here to claim your copy of this special report now — and we’ll tell you the name of this Top Growth Share… free of charge! More reading Top British stocks for April Scottish Mortgage Investment Trust: here’s what I’m focusing on 3 ways to invest in technology stocks Change at the top for Scottish Mortgage Investment Trust: should I buy? Is Scottish Mortgage Investment Trust doomed now its star fund manager is quitting? John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Roland Head has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Amazon, Netflix, and Tesla and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Why I think the Scottish Mortgage Investment Trust share price will rise again appeared first on The Motley Fool UK.
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  39. The Scottish Mortgage Investment Trust share price is up 117% in the last 12 months – can it keep rising? (10/02/2021 - The Motley Fool UK)
    In any investment there are naturally peaks and troughs. If you hold cash in the bank, your returns will be dependent on interest rates. If you invest in property, the value of your investment can go up or down depending on demand. Investing in stocks through a Stocks and Shares ISA or other sharedealing portfolio is often seen as carrying more risk than these investments. This is true to an extent, as individual share prices will frequently move up or down depending on market conditions, company performance, and demand. Every now and then, however, a company comes along that seems to buck that trend. If you bought shares in Scottish Mortgage Investment Trust (LSE:SMT) at any time over the last 10 years, you may think there is no limit to your returns. The SMT share price has gained more than 117% in the last 12 months in spite of the impact of the pandemic. In the past five years, the value of the trust has gained 514%. But how long can this go on? Can the Scottish Mortgage Investment Trust continue to beat the market at such an excessive rate? Why has the SMT share price gained so much value? Rather than focusing on anything related to Scottish companies or mortgages, Scottish Mortgage strategically invests in a number of global companies. It is managed by investment managers Baillie & Gifford. Their huge success and entry into the FTSE 100 in 2017 came as the result of holdings they had acquired in tech stocks in the US, China, and further afield. Amazon, Tesla, Alibaba, and Baidu are among the companies in which it has invested heavily. Tesla’s meteoric rise in particular has pushed up the SMT share price, as it now makes up more than 10% of its portfolio. The trust’s managers, Tom Slater and James Anderson, have a wealth of experience and the share price has clearly benefited from that in recent years. They have proved highly capable of managing the SMT portfolio and could well oversee a further increase in value. Where is the SMT share price headed? Scottish Mortgage shares are currently sitting at close to their all-time high of 1,385p. There are a number of possibilities that I think may limit their potential for further growth. As the trust is so heavily invested in tech stocks, any downward movement within this sector would have a big effect on the SMT share price. In particular, I’m be wary of its holding in Tesla, which I think is overvalued considering its sales to date compared with other carmakers. Many think that Tesla and other tech stocks on SMT’s books are in a bubble, and I would tend to agree with that. History tells us that investments that see such phenomenal growth as SMT cannot sustain that performance indefinitely. That’s why I won’t be adding Scottish Mortgage to my portfolio today, but I will continue to watch the share price closely to see how high it can go. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading The Scottish Mortgage share price doubled in 2020: should I buy now? 1 FTSE 100 stock from my best stocks to buy now list EV stocks: 2 UK companies I’m looking at 3 investment trusts I’d buy over Scottish Mortgage Market bubble: I would not have this FTSE 100 share in my ISA today! John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. conorcoyle has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Alibaba Group Holding Ltd., Amazon, Baidu, and Tesla and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The Scottish Mortgage Investment Trust share price is up 117% in the last 12 months – can it keep rising? appeared first on The Motley Fool UK.
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  40. This was Hargreaves Lansdown’s most bought stock last week (23/07/2021 - The Motley Fool UK)
    According to information published on Hargreaves Lansdown‘s website, the most bought stock on its platforms last week was the Scottish Mortgage Investment Trust (LSE: SMT). Deals in this equity made up 8.2% of purchases by the online broker’s clients last week.  The second most bought stock was oil and gas giant BP. Trades in this equity accounted for 5.8% of the total number of deals placed on the firm’s trading platforms.  Unique offering  The Scottish Mortgage Investment Trust is unique among UK shares for exposure to international growth stocks. Unlike other investment trusts and funds, the company has always been willing to take more risk, backing experimental and private businesses.  This approach has more than paid off over the past decade. The group has reaped billions of pounds in profits by backing tech giants such as Tesla and Amazon. When many of its UK peers thought these stocks were too risky, Scottish Mortgage was willing to take the plunge.  The company is now focusing its efforts on China, where it believes there’s a compelling opportunity. The trust’s managers reckon Chinese technology firms, such as Tencent, have a much longer runway for growth in front of them. Even though the country’s economy has grown to become one of the world’s largest over the past two decades, it’s still relatively underdeveloped.  This is where the team at Scottish Mortgage, and its parent Baillie Gifford, see the opportunity. As China’s economy enters its next stage of growth, policymakers are focusing on encouraging technological and economic development. They’re also regulating existing industries. The goal is to eliminate some of the more unsavoury business practices that have destabilised the economy in recent years.  Baillie Gifford also believes that as China grows, it’s becoming harder for Western firms to expand. New regulations, rising costs and increasing competition are all reasons why companies like Amazon may struggle as we advance. Stock-picking skill Based on the trust’s track record of picking stocks, I’m inclined to believe they’re on the right track. However, past performance should never be used as a guide to future potential. Just because the trust has been able to pick the market’s winners over in the past, doesn’t necessarily mean it’ll achieve the same track record over the next 10 years.  Still, when owned as part of a diversified portfolio, I think the Scottish Mortgage Investment Trust could offer investors exposure to a basket of high growth stocks around the world. It also provides access to the highly experienced and accomplished stock picking team at Baillie Gifford.  Based on these reasons, I’d follow Hargreaves Lansdown’s investors and buy the trust for my portfolio today. As a way to build exposure to China and fast-growing technology stocks, I think the company is pretty unrivalled. The post This was Hargreaves Lansdown’s most bought stock last week appeared first on The Motley Fool UK. One Killer Stock For The Cybersecurity Surge Cybersecurity is surging, with experts predicting that the cybersecurity market will reach US$366 billion by 2028 — more than double what it is today! And with that kind of growth, this North American company stands to be the biggest winner. Because their patented “self-repairing” technology is changing the cybersecurity landscape as we know it… We think it has the potential to become the next famous tech success story. In fact, we think it could become as big… or even BIGGER than Shopify. Click here to see how you can uncover the name of this North American stock that’s taking over Silicon Valley, one device at a time… More reading Scottish Mortgage Investment Trust: is this tech fund a better buy? 3 investment trusts I’d buy for growth 2 top UK shares to buy right now Space stocks: time to buy? Scottish Mortgage Investment Trust is the No. 1 HL buy. Time to join? John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Rupert Hargreaves has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Amazon and Tesla. The Motley Fool UK has recommended Hargreaves Lansdown and has recommended the following options: long January 2022 $1,920 calls on Amazon and short January 2022 $1,940 calls on Amazon. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  41. Hargreaves Lansdown investors are buying Scottish Mortgage Investment Trust. Should I? (15/02/2021 - The Motley Fool UK)
    FTSE 100 member Scottish Mortgage Investment Trust (LSE: SMT) was the most popular buy among clients of online share dealing platform Hargreaves Lansdown last week. As a holder of the tech-focused fund already, I’m not about to complain. In fact, I already hold this share and the momentum seen in its share price over the last year has left me asking whether I should be buying more.  SMT: FTSE 100 star Since markets hit rock bottom in March 2020, SMT’s shares have climbed almost 200% in value. Over the last five years, the trust has increased a little over 480%. By comparison, the FTSE 100 index has put on 32% since the coronavirus pandemic gripped markets. It’s also put on a paltry 11% since February 2016. For me, this is yet more evidence that it’s possible for active investors to handsomely outperform the market. The only snag is that it’s vital to pick the right stocks at the right time. That takes skill. But it also takes a fair bit of luck, at least in my opinion. Of course, SMT’s form isn’t surprising when you take a look at what it owns. Its five biggest holdings at the end of January were internet giant Tencent, biotech firm Illumina, online mega-giant Amazon and electric car makers Tesla and Nio. All have soared in value over the last year as investors have sought relative safety in pandemic-proof companies and those likely to benefit from the green energy revolution. So, should I buy more?  There is no shortage of reasons to continue investing in SMT as I see it. Aside from the performance it’s delivered to date, the 0.36% fee charged by managers James Anderson and Tom Slater  is seriously low for an active fund. In fact, it’s not all that different from what investors can expect to pay for global index tracker. This effectively means that more gains stay in the pockets of investors relative to other funds. On top of its holdings in the aforementioned high-growth giants, Scottish Mortgage also gives me access to promising private companies that aren’t even listed. This isn’t to say the company will remain an investing slam dunk. It’s hard to disagree with the idea that some markets, sectors and stocks that SMT invests in look frothy. Almost 40% of the trust is invested in the US market, for example. That might not be as much as other, equally popular actively managed funds such as Fundsmith Equity (70%). Even so, the latter holds a very different portfolio. What’s more, almost half of SMT is also taken up with Consumer Cyclical stocks, making it arguably less diversified than some in the market would probably like. Long-term holders only For me, SMT remains a great FTSE 100 investment and one I’ll continue adding to on a sporadic basis. However, a lot of this conviction rests on my strategy of holding stocks and funds for the long term. What’s suitable for me may not be suitable for the next person with a more limited timeline.  Indeed, if I were only looking to make quick profits — which is about as far away from Foolish investing as you can get — I’d tread carefully.   SMT enjoyed a stellar 2020. With a market-cap approaching £20bn however, there’s a chance it could struggle to replicate this performance in 2021. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading The Scottish Mortgage Investment Trust share price is up 117% in the last 12 months – can it keep rising? The Scottish Mortgage share price doubled in 2020: should I buy now? 1 FTSE 100 stock from my best stocks to buy now list EV stocks: 2 UK companies I’m looking at 3 investment trusts I’d buy over Scottish Mortgage John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Paul Summers owns shares in Scottish Mortgage Investment Trust. The Motley Fool UK owns shares of and has recommended Amazon, Illumina, and Tesla and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Hargreaves Lansdown investors are buying Scottish Mortgage Investment Trust. Should I? appeared first on The Motley Fool UK.
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  42. Is Scottish Mortgage Investment Trust doomed now its star fund manager is quitting? (22/03/2021 - The Motley Fool UK)
    Since mid-February’s all-time high, Scottish Mortgage Investment Trust’s (LSE: SMT) valuation has tumbled by around 20%. Having delivered a stellar return in recent years, the popular investment trust, which is managed by Baillie Gifford, has been a disappointment in recent weeks for its poor performance. Throw into the mix the announced retirement of one of its star fund managers and things could begin to look even more gloomy. With that in mind, how worried should I be in regard to the future outlook for SMT? Explaining the sell-off Baillie Gifford’s flagship investment trust has been a much loved vehicle for capital growth for many years. Investors seeking global exposure to some of the world’s best companies have long flocked to it. Some of the trust’s top holdings include global titans such as Amazon, Tencent and Alibaba. Not to mention exciting growth stocks like Tesla and NIO. Following an outstanding performance throughout 2020, punters continued to pile in until a dramatic drop in price occurred last month. Partially accounting for the fall was a widespread sell-off in volatile tech stocks, particularly high-growth US ones. This has come about as a result of a few factors. One includes the increased appeal of cyclical recovery plays in light of the mass rollout of Covid-19 vaccination programmes. Another concerns worries over increased inflation prospects, which also appear to be impacting the bond markets. Either way, it’s important to note that even with the 20% fall in price, SMT’s valuation is still double what it was a year ago. Moreover, with the trust committed to a long-term buy-and-hold philosophy, I’m not particularly concerned by recent lacklustre performance. The impact of Anderson’s departure That said, the departure of James Anderson is a bitter pill to swallow. Anderson has become synonymous with the success of SMT over recent years after an impressive 21 years managing the trust. His phenomenal record of identifying the companies of the future has consistently delivered lucrative returns to investors. Whenever a top fund manager decides to move on, I consider several potential long-term implications. Will the trust be able to sustain such a strong performance in light of its manager’s departure? And are there any obvious alternatives comparable in nature that may now present a better opportunity? Regardless, when it comes to SMT, I’m not sure I have much cause for concern. Tom Slater, who has been involved with managing the trust since 2015, will take over running SMT after Anderson’s departure. Having been immersed in the trust’s investment strategy for a while now, Slater is well-positioned to take up the mantle. My final verdict Nevertheless, Slater has gigantic shoes to fill and there are certainly tangible risks ahead. For example, with Anderson deciding to leave after delivering 106% share price growth in a year plagued by a global pandemic, expectations will be high regarding the trust’s continued phenomenal performance. Furthermore, bullish market exuberance in relation to tech stocks can’t go on forever. That presents yet another potential risk for a trust that so heavily relies on lucrative-but-risky investments. All things considered, I’m confident that with a robust long-term strategy and continued solid management, SMT still represents a worthwhile buy for my portfolio. In fact, I’d look at the recent sell-off as an opportunity to load up on the shares at a discounted price. A Top Share with Enormous Growth Potential Savvy investors like you won’t want to miss out on this timely opportunity… Here’s your chance to discover exactly what has got our Motley Fool UK analyst all fired up about this ‘pure-play’ online business (yes, despite the pandemic!). Not only does this company enjoy a dominant market-leading position… But its capital-light, highly scalable business model has previously helped it deliver consistently high sales, astounding near-70% margins, and rising shareholder returns … in fact, in 2019 it returned a whopping £150m+ to shareholders in dividends and buybacks! And here’s the really exciting part… While COVID-19 may have thrown the company a curveball, management have acted swiftly to ensure this business is as well placed as it can be to ride out the current period of uncertainty… in fact, our analyst believes it should come roaring back to life, just as soon as normal economic activity resumes. That’s why we think now could be the perfect time for you to start building your own stake in this exceptional business – especially given the shares look to be trading on a fairly undemanding valuation for the year to March 2021. Click here to claim your copy of this special report now — and we’ll tell you the name of this Top Growth Share… free of charge! More reading The Scottish Mortgage Investment Trust share price is falling! Should I buy? Scottish Mortgage Investment Trust: 2 peers paying bigger dividends Why I’d back the Scottish Mortgage Investment Trust Scottish Mortgage Investment Trust shares are falling: are they priced to buy? Why I’d buy Scottish Mortgage Investment Trust today Matthew Dumigan has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Is Scottish Mortgage Investment Trust doomed now its star fund manager is quitting? appeared first on The Motley Fool UK.
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  43. What are your highest conviction picks (06/04/2021 - Reddit Stocks)
    So it's simple what's your highest conviction stocks So to start of my highest conviction stocks has to be Berkshire Hathaway, Facebook, Amazon, Google and Unilever Here's why I like these in short So I like Berkshire Hathaway because of warren buffet and Charlie munger but also this is a diversified business and it's growing YoY. Google and Facebook are one of the best in the world the advertising business is growing strong every year and there's no sign this will stop also they are entering other industrys With Amazon it's another beast who's entering other industries all the time there cloud computing is growing strong and there advertising business are also growing. With Unilever I like this because over 2 billion people use their products every day and it's growing in emarging markets. I do have some high conviction funds eswell iam from the UK so most of you guys won't recognise these but you can reasherch them. So to start off my high conviction funds and trusts are Smithson investment trust, fundsmith equity, lindsel train global equity, Finsbury growth and income, Scottish mortgage investment trust and baillie gifford us growth trust. Here's why I like these funds and why you should reasherch them So with fundsmith equity it's ran by Terry Smith who's a legendary British Investor from 2003 to now he's averaged around 15% returns and what's even more impressive from 2003 to 2013 in the "lost decade" he averaged 14% return every year. He also gets a say in the Smithson investment trust but he doesn't run it everyday and Terry also gets compared to warren buffet. With the lindsell train global equity and Finsbury growth and income they are both ran buy another legendary investor named nick train. He is a expert in the UK markets both his funds are diversified with exposure to Japan UK and USA. Finally to Scottish mortgage investment trust and baillie gifford us growth trust. So these trust are similar to arkk funds and their parent company who controls the fund baillie Gifford were also at one point before the pandemic the second largest shareholder of Tesla just behind Elon musk they have sold some of Their stake after the impressive run up. The main reason I hold these trusts is because of the private company exposure Some honourable mentions are visa Mastercard and Adobe and Microsoft. I like them but won't buy them because of their valuations So what are your highest conviction stocks and why ?   submitted by   /u/royalshah10 [link]   [comments]
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  44. 3 investment trusts I’d buy for growth (20/07/2021 - The Motley Fool UK)
    Investing in the stock market through investment trusts has a number of advantages. Not only do they provide exposure to a wide range of stocks, but they’re also very cost-effective. On platforms such as Hargreaves Lansdown you can save a fortune on fees compared to costs involved with regular funds. Here, I’m going to highlight three investment trusts I’d buy for growth. All aim to generate strong long-term returns for investors by investing in higher-growth companies. My top investment trust for growth My top investment trust for growth, considering both risk and reward, is Monks (LSE: MNKS). It’s run by Scottish investment manager Baillie Gifford. Its aim is to generate capital growth over the long term by investing in global equities. There are a few reasons Monks is my top pick for growth. One is that it has a great track record. Over the five years to 31 March, its net asset value (NAV) rose 176%, versus 104% for the FTSE 100 World TR index. Another reason is the trust’s portfolio is well diversified. It has plenty of exposure to technology (Amazon, Microsoft, and Alphabet are the top 10 holdings), however it also has exposure to other growth industries. One risk to consider here is the trust’s bias to US stocks. So it could underperform if the US market takes a hit. Overall however, I think it’s a very sound pick for growth. Incredible returns Of course, I can’t talk about growth-focused investment trusts and not mention Scottish Mortgage (LSE: SMT). It’s delivered phenomenal returns for investors in recent years. For the five years to 31 March, its NAV rose 391%. I like this trust a lot. However, I see it as higher risk than Monks. This trust tends to make big bets on certain stocks. This can pay off at times, but it can also backfire if the stocks fall. Another reason this trust is riskier is that it has large positions in Chinese tech companies, such as Tencent (its largest holding) and Alibaba. These kinds of companies have a high level of regulatory risk as Chinese regulators are cracking down on big tech businesses. Considering the risks, I see this trust as more speculative in nature. I’d only invest a small proportion of my overall portfolio in it.   UK growth companies Finally, a third investment trust I’d buy for growth is BlackRock Throgmorton (LSE: THRG). This is a high-conviction trust that invests in small UK growth companies. It’s performed very well in recent years, returning 166% (NAV return) for the five years to 16 July. This trust owns some top UK companies. Some of the stocks in the top 10 holdings include Gamma Communications, Impax Asset Management, Games Workshop, and Watches of Switzerland. Overall, the holdings are very different to those of Monks and Scottish Mortgage, meaning this trust could potentially provide portfolio diversification. One downside is that it has a performance fee. This means that if performance is strong, the fees could be higher than those of some other growth-focused investment trusts. Overall though, I see it as a good way to get small-cap exposure. The post 3 investment trusts I’d buy for growth appeared first on The Motley Fool UK. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading 2 top UK shares to buy right now Space stocks: time to buy? Scottish Mortgage Investment Trust is the No. 1 HL buy. Time to join? Why I’m buying this top investment trust for long-term growth Will the Scottish Mortgage Investment Trust share price keep rising? John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Edward Sheldon owns shares of Alphabet (C shares), Amazon, Gamma Communications, Hargreaves Lansdown, Microsoft, and Scottish Mortgage Inv Trust. The Motley Fool UK owns shares of and has recommended Alibaba Group Holding Ltd., Alphabet (A shares), Alphabet (C shares), Amazon, Games Workshop, and Microsoft. The Motley Fool UK has recommended Gamma Communications and Hargreaves Lansdown and has recommended the following options: long January 2022 $1,920 calls on Amazon and short January 2022 $1,940 calls on Amazon. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  45. Investment trusts better buy: Scottish Mortgage or AVI Global? (07/06/2021 - The Motley Fool UK)
    Scottish Mortgage Investment Trust (LSE: SMT) and AVI Global Trust (LSE: AGT) follow very different strategies. SMT’s growth focus has produced a long period of high returns. Conversely, a value focus has seen AGT relatively underperform. However, with some signs investors may be cooling on growth and warming to value, which of these two investment trusts do I think is the better buy today? Contrasting performances The table below highlights the contrasting performances of AGT and SMT over both the short and long term. Period AGT performance (%) SMT performance (%) 6 months 16.0 11.6 1 year 46.1 65.8 3 years annualised 11.6 34.3 5 years annualised 18.3 37.3 10 years annualised 8.7 25.0 SMT has delivered two to three times the gains of AGT over three, five and 10 years. It’s also well ahead over one year, although both investment trusts have produced very strong returns in this period. Indeed, they’re rank at one and two in the Association of Investment Companies’ global category. However, over the last six months, their positions have reversed. AGT has materially outperformed SMT. Is this merely a temporary reversal? Or could it be the start of a long period of outperformance by AGT, much as the last decade was for SMT? A tale of two investment trusts’ strategies AGT’s value approach is to find stocks it believes are trading at wide discounts to their intrinsic net asset values. SMT’s growth approach is to find stocks it believes have potential to deliver exceptional returns. The two trusts’ largest equity holdings give a flavour of the kind of stocks their different approaches produce: AGT top 6 holdings SMT top 6 holdings Oakley Capital Investments Tencent Holdings Third Point Investors Illumina Pershing Square Holdings ASML Holding Exor Amazon.com Sony Group Tesla Christian Dior Alibaba Group Holding It seems unlikely these investment trusts will fundamentally change their distinctive strategies. Both strategies are attractively well defined and long established. I’d put SMT and AGT among the best-in-class trusts at the extreme growth and deep value ends of the investing spectrum. The popularity of growth and value tends to be cyclical. One may outperform the other for lengthy periods. However, I can see a good argument for having exposure to both rather than trying to time hopping between them. And by owning the best in class from growth and value, I’d hope to outperform the market over the long term. But what if I could only choose one today? Investment trust better buy: SMT or AGT? Growth strategies have enjoyed a long period in the sun. And SMT has successfully identified some of the growth themes and stocks that have produced the highest returns. Intuitively, after a such a period of dominance by growth, I’d lean towards favouring value right now. I get a nosebleed just looking at the sky-high valuations of many of SMT’s holdings! Still, it’s possible the relative underperformance of value could persist. And that SMT’s many big-concept stocks, such as Tesla, could continue to defy conventional valuation measures. On balance though, if I had to choose only one of the two investment trusts today, I’d be inclined to pass on SMT and buy AGT. Of course, both trusts are actively managed and stock selection is important to their performances. As such, I have to accept the risk that either or both could underperform the wider market. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading Why I’m still buying Scottish Mortgage Investment Trust Here’s why I’m still buying Scottish Mortgage Investment Trust What’s next for the Scottish Mortgage share price? Scottish Mortgage Investment Trust: should I invest now? 2 FTSE 100 tech stocks I’d buy today G A Chester has no position in any of the shares mentioned. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK owns shares of and has recommended Alibaba Group Holding Ltd., Amazon, and Tesla. The Motley Fool UK has recommended ASML Holding and Illumina and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Investment trusts better buy: Scottish Mortgage or AVI Global? appeared first on The Motley Fool UK.
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  46. How I’d double my money investing in stocks and shares (03/05/2021 - The Motley Fool UK)
    I aim to double my money every five years by investing in stocks and shares. Putting it another way, I aim to achieve an annual total gain of 15%. There’s a neat maths shortcut to approximate how long it will take to double my money called the rule of 72. Essentially, divide 72 by your annual gain to calculate the doubling time. The long-term average return from investing in stocks and shares is said to be around 8% to10%. Of course, past performance doesn’t guarantee future returns. But the period of average returns encompasses a range of scenarios including several wars, international catastrophes, and stock market bubbles. How I’d start investing in stocks and shares Investing in stocks and shares should be a long-term activity, in my opinion. There can be a greater element of risk involved during shorter timeframes. I try to invest for several years at the very least. This can mitigate fluctuations caused by some of the shorter-term economic, political, and psychological factors that affect stocks and shares. If I was starting again, I would begin my investing journey with carefully selected funds and investment trusts. I would look for funds that are global, diversified, and with competent managers. Top fund There are a few options that would currently be at the top of my list. Firstly, I’d invest in Fundsmith, run by veteran portfolio manager Terry Smith. The past 10-year gains have been exemplary, in my opinion. At an average annual return of 18%, the fund performed very well.   Fundsmith focuses on quality and profitability. The fund only invests in high-quality businesses that can sustain a high return on capital employed. The companies must also have business advantages that are difficult to replicate. Once found, Fundsmith aims to hold these investments for a long period. Bear in mind, to meet stringent selection criteria, the portfolio is relatively concentrated. It holds between 20 and 30 stocks. This is fewer than many other funds and it could affect fund performance if one of the holdings were to significantly underperform. That said, given the high quality of the holdings, it’s not a major concern for me. Top investment trust In the long term, I’m a great believer that technology will drive human progress forward. Computing power should rapidly increase over time and this could have large implications for multiple industries. Which industries will the next generation of winners come from? Tom Slater, joint manager of Scottish Mortgage Investment Trust (LSE:SMT) thinks healthcare, transport, transactions, and food delivery are the sectors to watch. Investing in stocks and shares from these industries could be rewarding over the long term. This actively managed investment trust has performed incredibly well, by any standard. Its average annual return over the past five years is 38%, and over the past 10 years is 24%. Holdings, including Tesla and Amazon, helped propel the trust to grow by 90% over the past year. A word of warning, however. The holdings are typically high-growth companies. As such, these stocks can be more volatile. As disruptors, they can experience setbacks in addition to breakthroughs. A change in market sentiment towards high-growth stocks can also have an amplified effect on a technology fund like Scottish Mortgage. That said, as a long-term investor willing to hold investments for over five years, I’m happy for it to form a core part of my portfolio. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading Should I buy Scottish Mortgage Investment Trust at the current price? Scottish Mortgage Investment Trust: should I buy after SMT’s recent 25% gain? 2 FTSE 100 stocks I’d buy right now if I had £1,000 to invest Why I think the Scottish Mortgage Investment Trust share price will rise again Harshil Patel owns shares in Scottish Mortgage Investment Trust, Fundsmith Equity, Amazon and Tesla. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK owns shares of and has recommended Amazon and Tesla and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post How I’d double my money investing in stocks and shares appeared first on The Motley Fool UK.
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  47. Two top investment trusts to buy today for long-term growth (22/03/2021 - The Motley Fool UK)
    Investment trusts can be a great way for UK investors to access the stock market. Not only do they provide instant diversification but, in general, they’re also very cost-effective. Here, I’m going to highlight two top growth-focused investment trusts I’d be happy to buy for my own portfolio today. Both own a selection of world-class companies and have strong long-term track records. A top growth investment trust for 2021 One investment trust I hold in high regard is Monks (LSE: MNKS). It’s an under-the-radar offering from Baillie Gifford – the investment manager that runs the highly popular Scottish Mortgage Investment Trust. The aim of this trust is to generate capital growth over the long term by investing in global equities. What I like about Monks is that it has a very well diversified portfolio. Unlike SMT, it doesn’t take large bets on higher-risk stocks. This reduces risk significantly. This is illustrated by the fact that while SMT is down about 8% this year after the tech stock sell-off, Monks is flat. Having said that, SMT has been the stronger performer over a 12-month time horizon, returning 114% versus 82% for Monks. There are currently some great stocks in Monks’ portfolio. At 31 January, Alphabet, Amazon.com, and Microsoft were all top-10 holdings. This investment trust isn’t solely focused on tech stocks though. You’ll also find companies such as insurer Prudential, alcoholic beverages giant Pernod Ricard, and make-up powerhouse Estee Lauder in the portfolio. Of course, there are risks to consider here. One is the trust has a bias towards US stocks. At 31 January, nearly 50% of the trust was in US stocks. If they underperform, the trust could underperform. However overall, I think this is a fantastic growth-focused investment trust. With ongoing charges of just 0.48% per year, I see this trust as a great way to get global equity exposure. Capital growth and income Another investment trust I like is Bankers (LSE: BNKR). It’s also a global equity-focused product. This trust was launched all the way back in 1888, so it’s fair to say it’s been established for a while. While Bankers has a focus on growth, it also aims to provide a bit of dividend income too. Currently, it offers a yield of around 2%. It’s worth noting this trust is part of an elite group known as ‘AIC Dividend Heroes’. These are trusts that have consistently increased their dividends for at least 20 years in a row. Bankers is actually the joint record-holder for consecutive annual dividend increases with 54 registered. Like Monks, this investment trust owns some great stocks. Top holdings include the likes of Microsoft, Mastercard, and Visa. Performance hasn’t quite been as strong as that of Monks. Over the last 12 months, the trust has ‘only’ returned about 42%. However, it’s worth noting that during last year’s stock market crash, this trust held up better than Monks. One risk to consider is it has quite a high exposure to the financial sector (nearly 25%). If this sector underperforms, it could impact the trust’s performance. Overall however, I see this as a very solid growth-focused investment trust. Ongoing charges are a very-reasonable 0.50% per year. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading Finding the best shares to buy: 5 questions I ask before buying a stock Why I’m buying these 3 US tech stocks today Is Scottish Mortgage Investment Trust doomed now its star fund manager is quitting? Does pre-approval guarantee a credit card? 2 penny shares I’d buy right now for capital and income growth Edward Sheldon owns shares in Alphabet, Amazon, MasterCard, Prudential, Microsoft, and Scottish Mortgage Investment Trust. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK owns shares of and has recommended Alphabet (C shares), Amazon, Mastercard, Microsoft, and Visa. The Motley Fool UK has recommended Prudential and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Two top investment trusts to buy today for long-term growth appeared first on The Motley Fool UK.
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  48. Why has the Scottish Mortgage share price crashed? (10/03/2021 - The Motley Fool UK)
    The pandemic created chaos in many industries in 2020. Yet some businesses have quickly adapted to the new environment and thrived, despite the disruptions to operations. Many of these companies can be found within Scottish Mortgage Investment Trust’s (LSE:SMT) portfolio of stocks. So it’s not surprising that the Scottish Mortgage share price more than doubled last year. But over the past few weeks, the price has experienced a significant tumble of 30%. What caused this price collapse? And is this a buying opportunity for my growth portfolio? Let’s take a look. Growth stocks are driving the Scottish Mortgage share price The core business model of Scottish Mortgage is to invest in companies on the stock market and then reward its shareholders with the profits it generates. This means that its share price is primarily driven by the underlying performance of the companies it owns. The top five positions within its portfolio today are Tesla, Amazon, Illumina, Tencent Holdings, and NIO. In 2020 all of these stocks saw explosive growth. But recently, they haven’t been doing so well. As far as I can tell, the market, in general, has been falling for a few weeks due to the concerns surrounding rising inflation. Why does this matter? Let me explain. How inflation affects stock prices Inflation can have a complex effect on the stock market. But generally, when it increases, so do interest rates. This makes fixed-rate bonds looks significantly less attractive to their variable-rate equivalents. And so money is moved out of the first and into the latter (or into other low-risk higher-yielding investment instruments). But as a consequence, fixed-rate bond yields begin to increase as well. This is precisely what happened with the 10-year US Treasury bond, whose yield doubled within the space of six months. Subsequently, the higher payouts begin to attract additional investors, including those currently invested in the stock market. When this happens, growth stocks tend to be the ones that get sold off first. Why? Well, without going too far off the beaten track, when inflation rises, the net present value of future cash flows falls. Put simply, the value of the expected future returns of a stock loses value. And so shares with high valuations, like those in Scottish Mortgage’s portfolio, begin to look even more expensive. Is this a buying opportunity? The fall in Scottish Mortgage’s share price doesn’t concern me. Even after this crash, it’s still up around 90% on a year ago. And the companies in its portfolio look to have strong prospects that could drive it higher. But that doesn’t mean there aren’t any risks to consider. Many of the stocks in the portfolio have absurdly high valuations driven by shareholder expectations. For example, Tesla, which is 9% of the portfolio, is currently trading at a P/E ratio of 1,080! Needless to say, if Tesla fails to perform, its share price could come crashing down and significantly impacting Scottish Mortgage in the process. Investing in high-growth stocks undoubtedly carries an increased level of risk. And there’s no way of knowing when the fears surrounding inflation will cease. But overall, even with the elevated risk level, I feel the recent drop in share price looks like a good opportunity to add the firm to my growth portfolio. But, there is another stock that I believe is set to explode in 2021. Here is: A Top Share with Enormous Growth Potential Savvy investors like you won’t want to miss out on this timely opportunity… Here’s your chance to discover exactly what has got our Motley Fool UK analyst all fired up about this ‘pure-play’ online business (yes, despite the pandemic!). Not only does this company enjoy a dominant market-leading position… But its capital-light, highly scalable business model has previously helped it deliver consistently high sales, astounding near-70% margins, and rising shareholder returns … in fact, in 2019 it returned a whopping £150m+ to shareholders in dividends and buybacks! And here’s the really exciting part… While COVID-19 may have thrown the company a curveball, management have acted swiftly to ensure this business is as well placed as it can be to ride out the current period of uncertainty… in fact, our analyst believes it should come roaring back to life, just as soon as normal economic activity resumes. That’s why we think now could be the perfect time for you to start building your own stake in this exceptional business – especially given the shares look to be trading on a fairly undemanding valuation for the year to March 2021. Click here to claim your copy of this special report now — and we’ll tell you the name of this Top Growth Share… free of charge! More reading Can The Scottish Mortgage Investment Trust and Baillie Gifford American Fund recover? Scottish Mortgage Investment Trust has crashed. Should I buy now? 2 UK growth stocks that would have doubled my money if I’d invested 2 years ago Should I buy Tesla shares or the Scottish Mortgage Investment Trust? 2 of the best UK shares to buy this March Zaven Boyrazian does not own shares in Scottish Mortgage Investment Trust. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Why has the Scottish Mortgage share price crashed? appeared first on The Motley Fool UK.
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  49. First Trust Mortgage Income Fund declares $0.06 dividend (22/03/2021 - Seeking Alpha)

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