Ryan Mee, CEO of Fulcrum Metals, reviews FY23 and progress on the Gold Tailings Hub in Canada. Watch the video here.
In my 40+ years of investing I have learned to ignore so called "experts" and chartists (a bit like fortune tellers) who usually have an agenda to talk up or down the stock values. Remember when oil was forecast by experts to go above $200? Valuing SMT is very difficult as it involves so much unquoted companies as well as the general market movement in the public stuff so I don't really believe the valuations. As for me I still have £22k in SMT and it represents just over 2% of my portfolio so no big deal but its been going nowhere for too long and at age 75 my investment horizon is getting closer :)
Watched the latest video and decided that it's the usual "you need to invest for the long term" story that you always get with funds that are underperforming. Sold out yesterday
Yes considering bailing out of SSON now, it doesn't even pay a dividend
BUT is now a 12% of my portfolio and growing nicely. Its a pity that it seems to be under the radar for most investors.
I understand what you say but I have a few other long term holdings with disappointing results following buy backs such as Diageo which has been buying back shares for a couple of years and it hasn't done anything for the share price (and this was before the recent profit warning) . In reality I would prefer a special dividend if they have excess cash and I can decide where to invest it. Artificially boosting share prices is often about executive bonuses. Incidentally is the SMT buyback coming from borrowing or have they been sitting on a £1bn cash pile?
Once again by signalling a buy back the share price rises which makes the buy back less effective and ultimately it's destroying value. So I am thinking that the recent share price rise is not a true reflection of where SMT is heading as the underlying assets haven't changed. Time to trim my stake a little more perhaps.
I have a subscription to the FT premium online which is very good but expensive at over £560/year (including a 20% reduction for payment up front) you don't get the usual news stuff in there unless business related but it does give you a good background to what's going on in the world with good analysis from experts. After reading this for a while it makes other papers look simplistic.
SMT has been one of my worst performing investments and even recently seems to be being left behind by the rest of my portfolio. It's now less than 4% but I still have nearly £40k worth. At age 75 my investment horizon is getting smaller so time to reduce a bit more I think.
One thing I have always wondered about BG is how they actually operate internally? Normally a fund house will buy and sell the underlying assets in the stock exchange but in the case of BG they have a whole raft of funds with quite a significant overlap in holdings so it wouldn't surprise me if some of the assets are actually held in internal nominee accounts and traded amongst the managers. This would have the effect of reducing external trading costs. Any thoughts?
Quote "I decided that I would put it to work in theS&P500, where you are practically guaranteed a long-term CAGR average of 10%." Be careful on this one. I am old enough to remember someone in the late 80's saying that the Nikkei has just hit 40k and look where that went. There is also an interesting article in the Economist about the S&P493 which is the 500 minus the magnificent 7 and it shows a rather pedestrian performance of the rest of the US economy. I was pushing my 500 allocation up until I read this and realised that it's basically a bet on only 7 companies, most of which weren't around (or not doing too well) 20 years ago.
Talking of luck I recall a comment from someone in Hargreaves Lansdown to the effect that some of their most successful investors were found to have dormant accounts where people had either forgotten about their portfolios for years or even died. The ultimate buy and forget strategy.
There was an article in the FT yesterday about how companies that have borrowed heavily during the period of low interest rates are starting to suffer as rates rise to more historically normal levels. In particular this is a problem for smaller companies which will probably become insolvent and also private companies. Got me thinking about SMT and some of my smaller company funds like Smithson. Any views?
I note a sense of "when things return to normal" in some of the comments. What 45 years of investment has taught me is that there is no "normal" just short periods of relative stability (eg low interest rates) before something else kicks off. For instance just as we were getting used to the Ukraine story and oil prices were starting to fall, along comes Israel/Hamas and who saw that coming?
Although technically share buybacks increase the share price I have yet to see a successful outcome in my portfolio. In my case I have held Diageo (DGE) for a few years and they always seem to be doing buybacks and yet the share price just drifts lower. I know that it might have been worse without the buybacks but would prefer a special dividend and then I can decided for myself where to allocate the funds.
Incidentally just watched the BG video on how they value unlisted companies, the fact that they have felt it necessary to put out this video tells me more than the rather waffly content.
My SMT is at about 3.5% of my portfolio currently it was at 15% at one time then the share price dropped. At age 75 i am starting to switch to value rather than growth stocks. I used to talk about SMT as a one trick pony on the back of the Tesla share price and then how Moderna was going to do great things. I should have taken my own advice earlier.
The buybacks over the past year don't seem to be achieving much, I would rather have the dividend and make my own decisions.
Whilst acting as an executor for my mother in law's Will last year I came across some paperwork for an ISA held by "Barclays Wealth" which was in the name of her husband who had died in 2011. As it wasn't obvious if she had taken the money out I tried to contact Barclays Wealth and discovered that they were no longer at the address on the paperwork and that the division had been sold out to some other outfit. Despite numerous calls and letters I got absolutely no response from anyone (even Barclays complaints dept) and I eventually gave up as it probably only had about £3k in it if anything. The message to me was don't trust a bank with your investments.
I have over £470k in Fundsmith T class held direct. The reason that it's there is that I built up an i class stake since inception but with HL and about 4 years ago suddenly realised that I was paying HL 0.45% or about £2K a year. I had to liquidate it to get it out as an ISA transfer and it was a complete screw up (HL payed me £100 as a good will payment for the trouble they had caused). I didn't have an ii account at the time but I suppose I could now move it to ii and turn the shares into i class for 0.1% lower OCF but that would take another leap of faith. Overall Fundsmith has been my most successful investment over my investing career of 45 years and lots of others are trying to replicate the Fundsmith model. As for SMT I still have a small stake of about £35k.
Just a general comment really and wondering why there is so much heated discussion on this SMT forum? I have shares in other companies and when I look at their chat rooms there is hardly anyone there in fact some of my most successful investments have had no comments for years.
I still have a small part of my portfolio in SMT (about £30k worth but it used to be a lot more ) but I keep resisting the urge to get rid of it. I have a set of notional watchlists on HL where I put £100 into various stocks and funds on 1st of Jan each year and look at the value of that investment today (ignoring any dividends etc). For SMT the figures are dire. My problem is that at age 75 I no longer have 20+ years time horizons. Good luck to all you youngsters.
since 01/01/23 £90.21 or -9.79%
since 01/01/22 £49.94 or -50.06%
since 01/01/21 £53.22 or -46.81%
since 01/01/20 £110.3 or +10.3%