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Thanks LLoL, weirdly rather than feeling too hurt about losing out on some of todays gain I feel a little relieved to have turned those shares into Premium Bonds. Boring and likely to erode a little due to inflation there but it is safe and locked away. I still have a lot of SMT shares and I back the investment portfolio but as you say, if you are checkkng the share price on a sometimes hourly basis you are in too deep. I feel confident SMT will keep going strong. I really hope it does. I have learned to make sure your investment portfolio has diversification. I plan to use the money for private education for my son. I will need the money very regularly to hand in 5 years time. Hard to say where the SMT sp will be then. Best to bet on more than one horse and maybe have some locked away in cash too!
CaptainPicard - I think your actions perfectly illustrate risk management.
Every investor's circumstances are different. And to some extent - along with your personality - they're likely to determine attitude to risk.
Life's too short to have sleepless nights worrying about the investments you manage. So by taking action to address this, you've done exactly the right thing. So what if you could have got a bit more? You'd have still had that worry in the meantime. And you broke even at the end of the day (probably better, once dividends are factored in).
Plus, valuable lesson learnt. Always ask yourself BEFORE investing how comfortable you'd be if you lost some/all of the money. If the answer's "not very", invest less. Or choose something altogether safer.
I feel your pain. For once I am truly grateful I stuck with my plan and didnt sell
All this share needed was for me to sell some! Always the way! I sold half when I was just over break even. Feeling positive and comfortable now. I think I was over-invested before.
Gotoutjustintime - I certainly see their buyback programme as a positive. And so does the market for now.
It's no coincidence SMT closed at 781p on 14 March and is currently hovering around 859p, following their buyback RNS on 15 March.
Shano1 - that’s certainly one way of looking at it.
But one look at SMT’s share price since the buyback programme was announced suggests a possible alternative take on things.
Interesting article LLoL - I also saw this positive take on SMT in CityWire today:
https://citywire.com/investment-trust-insider/news/hewitt-scottish-mortgage-on-the-front-foot-as-top-growth-trusts-recover/a2438689?re=118494&ea=1988161&utm_source=BulkEmail_Investment+Trust+Insider+Daily&utm_medium=BulkEmail_Investment+Trust+Insider+Daily&utm_campaign=BulkEmail_Investment+Trust+Insider+Daily
So we now have £77679969 worth of shares held in treasury. This is dead money which holds back the future performance of the trust. Utter madness.
Personally I hope the comment referenced in my previous link about funding buybacks by "trimming positions based on their size" applies to Nvidia. No harm in top slicing, particulary when a holding has experienced a meteoric rise and is looking like it may now pause for breath:
www.hl.co.uk/shares/shares-search-results/n/nvidia-corp-usd0.001
Absolutely no need for anyone to apologise!
After all, there are no hard & fast rules on any BB - and I'm certainly not some kind of self-appointed moderator here.
Just better IMHO if we generally keep comments relevant to SMT. On which note, I found the following article on the recent buyback announcement interesting:
www.trustnet.com/news/13408629/how-scottish-mortgage-will-pay-for-its-1bn-buyback-scheme
so... i bought this 2 years ago at about 11......despite having top performing investments like nividea etc it halved in value and pays **** all dividend.....then suddenly it seems they have 2 billion available for share buybacks.....could this be because the directors boots can no longer fit any more cheap shares in and a comfortable retirement looms ?????
"Thefrogster : let's find a meeting room to have a breakout session."
I'll bring the flip charts...
Yes, apologies - should be about SMT :)
Thefrogster : let's find a meeting room to have a breakout session.
LLL : Very true.
Sorry.
We seem to have gone a bit off message.
Just a reminder this is an SMT board guys, not a pensions help line.
Thefrogster : Apologies...I didn't read that post.
Sort of...
I don't believe public sector workers should feel entitled to a gold plated pension. Its not fair on us private sector workers. In the end, its all down to the performance of the underlying fund which is the responsibility of the nominated fund(s). If they underperform or the burden of the weight of public sector workforces' pension weighs heavily on that pension pot, then you have a black hole....Another public sector created problem.
" the pension freedoms legislation of 2015 has given people the ability to manage their own pension funds"
From the following website :
https://commonslibrary.parliament.uk/research-briefings/cbp-8382/
"The ‘pension freedoms’ introduced in April 2015 gave people aged 55 and over more flexibility about when and how to draw their defined contribution (DC) pension savings."
So this is voluntary. its up to the individual to seek out financial help if they don't understand it, to decide after 55 (soon to be 58) whether they want to stay on DB or DC.
I'm actually concerned about the years leading up to that age....people in the ages between 25-50. That's where I'm seeing a staggering amount of apathetic behaviour towards their retirement.
I agree with everything you say here Tambo but people have had these freedoms since 2015. This was the reason I said ticking time bomb in my previous post as the implications have not yet filtered through to everyone.
lll : we clearly move in different circles.
i see too many people living off credit and not knowing where to start when it comes to doing due diligence on fund purchases. i often get asked where i direct my pension contributions, but i'm not sharing that info. i spend vast amounts of time reading and researching and keeping tabs on global events, that i'm going to share my choices, when frankly they're not interested in why? hell with that. you guys are different since we're kinda all on the same wavelength, actively discussing on this mb. my response to requests is simply to stick with their companies' nominated pension provider's default fund choice. its usually a balanced managed fund......frankly, they're not bad and tend to smooth out peaks and troughs with an upward trend. 5% pa long term growth isn't bad frankly tax free (growth that is) with zero effort on reading. what is a concern is how much they put aside vs their expectation of what they'll have at retirement and what kinda life they'll expect they'll be living......nothing matches up. of course, part of that is also based on inheritance they believe their entitled to and also the value of a 2nd property they have rented out, purchased with an interest-only mortgage not in london (lol!)
they will get off their backsides once they get a letter through the door 5 years before they expect to retire, waking up to the fact the pension pot is 1/4 of what they need to live the dream life of 2 holidays abroad a year, eating out three times a week, a new car every 2 years, and putting a deposit down for each of their 2 children when they go to purchase a house. they forgot to take inflation into account.....probably forgot to check they have enough nic to qualify for the max state pension.
and of course, they'll be no money for care home fees which will rise with inflation.
my summary ((doom and gloom as usual) : major **** storm ahead in the next 15 years.
this is one of the reasons i felt rescinding the 1% ni increase of boris' reign was something they'll regret.....either that or we need to grow as a country and frankly with the rising number of people signing themselves off due to mental health reasons, growth isn't going to materialise. hunt cutting ni in the most recent budget only makes matters worse.
Shano1 - I hear what you’re saying. But sometimes, trusts can get lumbered with a reputation for longer than they deserve. Other times it’s fully justified!
I guess the managers here feel it’s the former and are trying to address some investor disquiet. If their plan works, there won’t be many on here saying they should purely have stuck to the knitting.
This programme flies in the face of long term investing of five years and gives no more than a quick sugar rush to the share price. The market will always allow to share price to adjust after attempted manipulation. Since this 1 billion is self funded then well done to the management but i feel this could have been applied to actual investing which would compound future growth which share buybacks fail to do. The managers should concern themselves with investing and let the share price and discount look after themselves. If they get it right the discount will narrow.
Thefrogster - thanks. Whilst there might be a few who - through bad luck, poor advice or recklessness - burn through their retirement funds far too quickly, I'm a firm believer the majority won't.
Give people the option to manage their own destiny and most will do so responsibly IMHO.
Anyhow, I guess we should probably steer posts back to SMT itself now!
I agree LLoL – the pension freedoms legislation of 2015 has given people the ability to manage their own pension funds so why should this be any different for public sector workers? It might still be a ticking time bomb though as more and more people become reliant on the state because they have burned through their pension funds too early.
Tambo210 - totally disagree I'm afraid.
People are far more likely to research (or get independent advice) when their future's in their own hands & on the line. Sure, some will get things badly wrong still. But that's no different from the risk faced by private sector employees. And why on earth should it be?
Also, I firmly believe public sector employees must be weaned off any feeling they're entitled to final salary protection at retirement. There's currently too much of a cotton wool mentality. Removing these schemes might well mean public sector base salaries aligned more closely with the private sector. But that would still be far less costly than the status quo. Keeping these schemes going when they're placing an unsustainable burden on the state is plain financial illiteracy IMHO.
As I said before, the government has tweaked pension rules elsewhere by extending the retirement age. So it can be done. That too, meant some had to re-think their finances & postpone retirement. I suspect governments of whichever colour still need to go much further & faster on pension reform, if we're ever going to plug the huge gap in public service finances.
"I personally can't understand why the government hasn't already moved to money purchase schemes for ALL new joiners in the public sector. "
I''ve never had anything but a money purchase pension. The first one dived massively but didn't touch t during the sub-prime crisis. My second one did well, until the same event and then I chopped and changed so much that I've pretty much written that off and just going to let it die now.
My remaining two pensions from current and penultimate job are doing ok-ish. Much bigger pots, but less risk following lesson learnt. But the reason I mention this is because the vast amount of reading and the painful experiences with no one to blame, makes me think that shifting the millions of public sector works to money purchase pensions....is like a ticking time-bomb. They get to retirement having done F-all reading and research and expect final salary like pensions.....Errrr nope!