Member Info for Beachhouse

When it comes to investing I just use common sense and probabilities, there's lots of information out there thats easily accessible with the internet. We all know that rising inflation and rising interest rates are bad for growth stocks, looking at the news it appears that inflation is falling, interest rates will probably also start falling, probably sometime next year, this will be a positive thing for growth stocks. For SMT some IPO's of the private equity would be good, these have been mentioned in recent news, and may start to happen next year. Its hard to buy stocks when they are in the doldrums, it seems easier when the share price is in an uptrend and everyone is singing its praises, both ways work. If you buy now you may have to wait, but you are nearer to the bottom, or you can wait for a good uptrend and join in then, people make money both ways.

I think this is a good buy point for SMT and a lot of other trusts and individual stocks, I've sold BP that has stayed up and bought more SMT, I feel there's more upside potential for SMT from this level.

It's all about time frames, over 10 years SMT is one of the best performing trusts, over 5 years it may not look so good, but even at this low point it has still out performed so called safer trusts like CTY. People will now say what about the past 3 years or 1 year performance, well SMT management say they aim to create value over 5+ years, over the past 10 years the share price has roughly doubled every 5 years, for that performance to continue the share price will need to double from where it is today over the next five years, my money is on it.

I read an article about NVDA, if you had invested $10,000 when it had it's IPO in 1999 you would now have over $25,000,000, that's a massive increase, but interestingly during that time the share price dropped over 50% on twelve occasions, and on two occasions it dropped over 90% , these are the type of stocks you are investing in with SMT. According to Scottish mortgage this drawdown we are in now doesn't even make their top five for SMT, it's all been seen before and worse.

Looking good

It's a strange thing, if you think that this is the right time to sell SMT shares you will be selling them to someone who thinks it's the right time to buy SMT shares.

I think investment trusts in general are out of favour at the moment, looking at some that I have owned over the last few years, CTY, TMPL, BCPT among others, things will change, August can be a slow month.

Good result from NVDA this will help SMT, it's coming good.

Would be nice to break through the last recent high

Some big up moves today from some of SMT top ten stocks

SMT has received a lot of criticism about it's private equity holdings, but I think some of these companies will provide the future growth for SMT

SMT management say they aim to offer value over a five year period, if you bought at the last high it's not even been two years, so more patience is needed. If you had bought SMT at the height of the dot com bubble, when all the experts and pundits would have been advising you to buy, you would have needed to wait six years for SMT to make a new high and to be in profit, that's the longest time frame I'm aware of, it's normally less. At the moment your buying at a low point, it could go lower, but in general prices of everything go up, including stock prices.

A wise wealthy man once said, "the stock market is a device for transferring money from the impatient to the patient". (The sage of Omaha). It's difficult to stay positive during times like these, but when SMT makes a new high you will be glad that you are a shareholder today.

A bit of positivity.

SMT held up well today on high volume, very positive.

Analyst's can be very hit and miss, a quick look on Marketbeat at Tesla Analyst's ratings shows a recent price target of $125 and even a $33.3 target from another Analyst, on the other hand there's a $350 target, it's the same with Moderna, the experts all have different opinions, the experts at SMT have a good track record of catching a few high flyers, it's not easy.

Interesting Trustnet article today saying only 7% of investment trusts have outperformed the American indexes over the past decade, and SMT is one of them.

Stock prices fluctuate, they get pulled around by external events, it's all normal stuff.

Would be nice to see 800 during August, the NAV is rising nicely.

A Couple more Buy SMT articles on motley Fool and Google finance, all good.