The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Well their success rate is evident over the past 20 years,not a flash in the pan.
? - or perhaps more accurately, are expected to have a
decent chance of outperforming over the next few years?
since SMT management are hopefully not so hubristic as to imagine
that all their stock selections will actually outperform. it’s a long game
of average percentages, but there will be a few stinkers in the barrel.
The point is that if SMT think any share in their portfolio is overvalued(whatever that means) they do sell.Obviously those that they retain are expected to outperform over the next 5 years
from a long term perspective, 5-10 years , i think the sustained & severe
disruption from covid19 will actually hasten disruptive developments
across many different industries & challenge slower moving traditional
business models from the C20th. the world won’t just be reverting to
the way things were, across multiple sectors including savings & fintech,
biotech/pharma, bigdata/AI, logistics & distribution, energy, advertising
etc. …short term, 2 years say, world will be counting the cost, but covid
has given the world a very big shake like a clumsy toddler juggling a snow
globe, & many of the pieces thrown up in air will settle in different patterns.
lots depend on the timescale that needs to shape an individual’s
investment agenda, and for most folk it’s very sensible to diversify
risk across asset classes, sectors, countries, etc. no-one out there
has an accurate crystal ball. back in my trading days, folks thought
the japanese would take over the world, and tokyo real estate pretty
much outpriced the entire UK economy. but then came two decades
of stagnation, & bye-bye japanese world domination. sensibly, the
outfit i used to work for hedged its bets carefully by working hard to
build up tiny scraps of business, relationships and political capital
with china. it was frustrating slow back in those day (mid/late ‘80s),
but as it transpired, that was v smart seed corn for a different future.
Robina why dont you just manage your own fund if you can see it all coming a mile off?
Robina - hindsight's always the best sight! In any case, how you react really depends on your investment timescale and whether you view any market correction as temporary or permanent. SMT's managers have always said they aren't unduly swayed by short term trends and that any holders should have a min. 5 year investment timeframe. I know some on here regard that as unreasonably long. In which case, they simply shouldn't invest in SMT. Simples!
Fund mgrs should have gradually reduced exposure and taken profits on the many overvalued stocks rather than wait to everything comes crashing down.
Isn't Moderna P/E like 10 though? It seems undervalued if anything. I dunno why people slate this holding so much. The worst SMT holding is problem Ginkgo Bioworks. In a rising interest rate environment - you don't want to be holding profitless companies like that.
Cashmonies - if you'd read my previous posts you'd have seenModerna represents a lot less than 10% of SMT's total holdings now. You're looking at out of date figures & valuations from last November.
The value erosion here has been fairly brisk, however given there was a ripple before xmas I think it was evident a bit of tailoring needed on exposure.
For me now this represents a good buy, not sure if this will breach the 52wk low but id expect a recovery here now after market tension yday.
Purely my views not advice!
NASDAQ and S&P500 have recovered strongly from initial losses. There seems to be some sustained buying pressure. I'm going to top up on SMT in the morning, and would anticipate a good rise. Almost certain to be further volatility and dips but this is now at an attractive discount.
I'm not saying MNRA is a bad company, I held it from $24. I just think it has along way to go down yet. I feel like 10% is too much to hold in majority of companies?
Read my post.Do you do any research ?
Well SMT held or ? hold 10% of moderna and it's only heading in one direction now covids over. It's in favour because of covid, now every one thinks covid is coming to an end people with follow the crowd
Over 20 years SMT are up by 2139% and the FTSE All Share Index 241%.They know what they are doing!
Why can’t you leave it to SMT managers ? They know the company much better than you and I know they didn’t buy it for the vaccine production.
What have you got against moderna in particular?
I moved to SMT to mitigate some for the risks of my share picks, but bloody hell. Until they are out or Moderna I ain't coming back!
Read the SMT annual reports and their many on line management interviews.Their 10 year record is brilliant so they have got lots right over the years.But it is not and isn’t meant to be a steady Eddie,a market tracker.If this is what you want you should invest elsewhere
The problem I see from here is that the sort of stocks SMT held aren't likely ever to get back to 2021 levels. I think fund managers just hoped the bull run would continue. Many of the 'actively' managed funds AREN'T in fact. They just continue to hold stocks whose days are numbered. They still get their fees though!
Alexanderef - You're not alone, I too am 28% down on SMT. It's nerve-wracking.
SMT philosophy is buy companies which it thinks can grow dramatically over the next 5 years.It never invests for short term gain and believes that only a few stocks ever beat the average so it tries to identify the few who can.SMT advises all shareholders that it can be volatile and should be bought only by long term holders.Its record over many years is excellent and I sure it will stick by its strategy
JoeKing53 - Feb 2009 (in the thick of the financial crash), you could have bought SMT shares for 58p each. Even after the 5:1 share split in 2014 , that's a pretty decent return over a long timescale. So I'd say fund managers HAVE been investing in fundamentally profitable companies. You couldn't create that sort of return over such a long timeframe any other way.
To paraphrase Warren Buffett: It's only when the tide turns against you that you realise which Fund managers have been swimming naked"... Let's see if SMT's fund managers have been investing in fundamentally profitable companies - or companies whose share prices had been going up... 2 year time frame.
Spikeyj - Quite! In fact I recently took issue with a poster here (no names, no pack drill!) who claimed "A good fund manager can get a return for investors every year, right?". Longer term investors will know even the greatest fund manager can't push water uphill. At least - not for long. I'd also suggest a change to the current thread title (BLOODBATH AS PREDICTED - BY SOME). Whilst new investors in SMT may view the recent fall as a bloodbath, I view it more as a correction, reflecting general market falls & sector rotation out of tech/growth & into value shares. Sure, it's painful whilst it lasts. But it won't last forever. And the rebound is just as likely to catch you offguard as the current fall.