Member Info for Beachhouse

Last year was a really bad year for inflation in the UK, we already had the fallout from the pandemic, then Brexit meant less cheap labour from Eastern Europe, a lot of cheap stuff came from Russia and Ukraine, that changed early last year, we had a heatwave and drought across Europe which effected crop yields, we had bird flu on top of the increased price of grain feed that caused egg prices to go sky high. At one point last year petrol prices were in the 180s it is now in the 130s, very soon a year on year inflation reading will show this as a significant fall, the milk I buy went up to £1.65 last year, it's now £1.55, things are starting to get better, at some point soon, a year on year inflation reading will start to fall, it's not so bad in the USA, it's all transitory.

I have a large holding in SMT, previously I have held TMPL and CTY among others, they all go back over 100 years, been through two world wars, depressions, recessions, high interest rates, (today's are not high), high inflation (I remember the 1970s), What's happening today is nothing new, it's all transitary, these trusts will all make new highs, they always do. In modern day times things move quicker, for those who can wait a few years it's hard to go wrong, it's when people try to make a fast buck, well that's more down to luck

I think moderna will be on the back burner for now, don't give up on it though, it's not Laden with debt, and they have lots projects in the pipeline. I think the private equity holdings are seen as the dark side due to negative press, a successful IPO of one of these would change opinion and demonstrate that they are just as valuable as an investment.

Investment trusts were set up as a safe way for us all to invest in the stock market, your money is spread across a wide range of different companies and assets, around 100 for SMT one thing I do before investing is to bring up a historical chart and look back and see if I had bought at one of the peaks how long would I have been in the red until the share price recovered and I was in profit, the dot com bubble it took 6 years to recover, other times a lot less, also in more modern times things seem to move quicker than years ago. I try to buy when there's been around a 50% decline, and remember if your in the red which I am at the moment, don't worry, just wait.

Great to see Tesla on an upward trajectory, with it's multiple income streams this could be just the start of a big move upwards, great news for SMT.

I think a successful IPO of one of the private holdings will swing the balance for SMT, it will probably be next year.

SMT took around 6 years to make a new high from the dot com crash, around 3 years from the 2003 low

Some thoughts, could Tesla be back to the top holding, it has risen around 150% since January while moderna has fallen.

The fund managers job is to increase the nav, something SMT are very good at, the large discount to nav is what successful investors recognise as a money making opportunity. When the share price was 1500+ the pundits were telling us that it was an excellent share to buy, the same pundits were full of doom and gloom and telling us to sell when the share price was down near 600 , this is the opposite of what you need to do to make money on the stock market. I hope you were all buying in the low 600s with a large discount to nav, I was.