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From what I can remember SMT was invested in biggish companies but low yielding even then. It was not in hi tech at that time.
SMT changed its profile back ten years or so ago and got out of their previous investments pretty much wholesale.
Until then they were much like other global ITs but their SP always seemed more expensive. I paid my contributions and thought about it on receipt of my half yearly account. SMT left the other global ITs behind. I assume that was JA's influence.
I initially picked SMT a year or so after I started a PIP in FCIT. I ended up paying less into SMT but now have more than doubled the value of SMT compared to FCIT.
I seem to remember I chose SMT as it complimented FCIT as it had a different type of holdings even then.
At that time ITs were an ignored as a Cinderella investment as unit trusts and their ilk were the rage. They were a cheap but efficient way into the stock market for someone like me.
SMT has been by far my best ever investment followed by AZN.
For what it is worth I have found investing in global ITs has proved very profitable but only over a period of years not months.
I have found that investing in individual British shares have been less profitable indeed I have lost money on some. I lost money on BTR/Invensis , Lloyds ,BT and STA-dogs. Pharma has been good to me I must say.
I have stuck to global trusts and prospered-Witan,SAIN,FCIT and more soecialist ITs.
It's removed the link, but the full interview is on the Moneyweek website if you're interested.
Robleo and Chard - looks like you've had a lot of helpful insight from others on here, but might be worth a look at one of the fund managers' thoughts.
Source - https://moneyweek.com/investments/investment-strategy/603184/tom-slater-of-scottish-mortgage-trust
The last year has surprised me in a lot of ways. But let me start by saying that we don't think that the outcome in any one year tells you a great deal. We're delighted with the returns that we've delivered for shareholders over the past year, but I think you've got to look at five years or probably ten years, when trying to assess the scale of a manager, the performance of the trust. Over time periods like one year, the market will be volatile – we have very little influence over the outcome on those time horizons.
So, first point, I would encourage listeners to look at much longer timeframes than just one year. If you look at what has happened, what has driven that outcome, it's not because we had any deep insight into what was going to happen in the course of the pandemic, or, indeed, the market reaction through this time of economic stress. Instead, it's that we're investing in the companies and entrepreneurs that are building the future of the economy.
Historically, I'd say any time SMT trades at a significant discount is a decent buy signal. I topped up in Feb & March 2021 - the first time below £11, the second time below £10 - (probably just as you were bailing out!). The discount then was around 10% or more, which seemed a huge market over-reaction. There are likely to be similar future opportunities, when markets fret over inflation and people start talking about a rotation from growth to value shares. That's when I'd pounce. But if you're "looking for gains in months not years" and can't afford a short-term (or possibly even a long-term) real/paper loss, you shouldn't be in shares at all. Easy access / 1 year fixed savings in that case. Even though you'll lose money in real terms, your capital will be secure and will rise VERY slightly over time (before taking inflation into account).
I ducked out of SMT in march after the big drop on Feb 15th, down nearly 28 % and most of my profit. Stayed away from tech stocks till now. I am looking for the right time to buy into this fund, but not sure how to time this ? I will be in for a while but not 10 years, looking for gains in months not years.
Robleo, you say you're 1 year from retirement so 65 ish, at that stage I would respectfully suggest you steer clear of individual shares which are far to volatile and time consuming research wise to stay on top of fluctuating trends. Much better to be in say low fee investment trusts or some of the better open ended funds or go a bit more passive with well diversified ETF's.
I quite often check out the Citywire Forums for decent advice or just a straight answer.
If you want hot action get over to the SAR board, that will take your eyebrows off, or ARB can be interesting 24/7 even if it's just to learn about sky high risk.
FWIW.
Thanks for your feed back guys, I get what some of you are saying, but long term investments are not for everyone, for me reaching retirement age in 1 years time, I am more interested in high dividend shares, but also some for growth, which hopefully I can get from the likes of lloyds and was also hopeful of smt, of course I don't expect it to rise instantly, but just staying in the blue would be nice, it seems to be lagging behind, maybe this is just not right for me, will give it a little longer and see how it plays out, just because it has done very well the last couple of years, doesn't mean it will in the next few years
best of luck to you all
I started investing in SMT in 1993. All I have ever done is make a monthly payment and reinvests divi. For most of the last thirty years this share has been pretty vanilla. Often after six months of paying in, my investment was worth way less than in the previous six months. I got used to it. SMT has taken off after changing its investment profile about ten years ago.
Investment is about Time and not about Timing. That maxim is certainly true for small investors like us.
Some people here still don't get it. Holding a share for a 'reasonable time like 12 months' is not optimal or a sensible strategy with a trust like SMT. Look at what you are buying into, do some research, figure out your time frames, invest for your children here or for when you retire in 5 to 10 years.
It's not just "Some on here" that advocate buying and holding for years/ decades. The Warren Buffets, Peter Lynches and Terry Smiths of the world will tell you the same thing.
ROBLEO, I'm not sure you have the right mentality for investing, there's no point grumbling when one particular share isn't doing very well, you need to have a well diversified portfolio and hold for a reasonable amount of time, not the many years advocated by some on here but certainly for at least 12 months.
CaptainPicard, well everything on the stock market is gambling to some extent, the suggestions from some posters of waiting years or decades, is a bit silly, ok if your in your youth maybe, I have 8 funds that seem to move at a snails pace, also some high yield dividend shares, don't expect this to double in price overnight, but it does need to stay in the blue and start making some progress, it only pays a very low dividend, therefore you need that compensated with growth, otherwise I may be better off putting my money into a dividend paying stock such as lgen
cheers
You eill do well.in the long term if you stay onboard. You sound like you are gambling Jeff
Try thinking in years or decades, not days.
not seen any good performance here personally, I was in profit for a few days, now back in the red, I know your all going to say about how well its done in the past, but for me I need to see current performance
Ah , just found your post . I'll dig into Trustnet .
Got your logic as well .
Thanks
https://www.boringmoney.co.uk/learn/articles/top-funds-march-2021/ Think I've got a yardstick now , just thought I should flag it up for the newbies like myself who are fed up with click bait . Not totally sure about Boring Money but seems like an honest appraisal.
For the unitiated the trustnet tools are pretty well hidden and a bit ancient in style but still work.
Hi Jeff there are two well known tools Morningstar and Trustnet. I prefer analysis of Trustnet and I look for annual growth rates of at best 20% per year on year over a 5 year period and for variance which for Funds they use another word of as low as 10% as possible. My strategy is that buying something like means that timing does not come into it. I then monitor the asset until it leaves the control limits described above and sell. It works well or has for the past 15 years or so. Other people look for 5stars in management etc but frankly I'd rather see a good base of competence.
Hello , a quick intro first as its my first post . I am retired and fairly new to investing but I did well with tech stocks etc after the "Covid crash" . But , I sold a lot of shares during the Brexit climax ( wish I hadn't ) then recently bought into SMT at around 1300 and took a hit.
To the point , who do you use to evaluate "The best Fund performers?" . Just wondered if there was a yardstick that experienced investors use . Thanks .