Member Info for laallee

SMT are not invested in the actual crypto currencies- they are invested in the handling ie security and distribution of it.
A bit like selling the pics and shovels to the Klondike gold prospectors-
I am not at all turned on by any of the crypto madness, when I occasionally get interested I read the following -

A lot of monkeys lived near a village.

One day a merchant came to the village to buy the monkeys.

He announced that he would buy the monkeys for £100 each.

The villagers thought he was mad.

They thought how can somebody buy stray monkeys for £100 each?

Still, some people caught a few monkeys and gave them to the merchant and he gave them £100 for each monkey.

This news spread like wildfire and more people caught more monkeys to sell to the merchant.

After a few days, the merchant announced that he would buy monkeys for £200 each.

Even the lazy villagers now ran around to catch the remaining monkeys and sold them for £200 each.

Then the merchant announced that he will buy monkeys for £500 each.

The villagers started to lose sleep! They caught six or seven monkeys, which was all that was left, and got £500 for each one.

The villagers were waiting anxiously for the next announcement.

Then the merchant said he was going home for a week and when he returned he would buy monkeys for £1,000 each.

He asked his employee to take care of the monkeys he bought.

The merchant went home and the villagers were very sad as there were no more monkeys left for them to sell at £1,000 each.

Then the employee told them he will secretly sell them monkeys for £700 each.

This news spread like wildfire. Since the merchant will buy monkeys for £1,000 each, there is a £300 profit for each monkey.

The next day the villagers made a queue near the monkey cage.

The employee sold all the monkeys for £700 each. The rich bought monkeys in big lots. The poor borrowed money from money lenders and also bought monkeys.

The villagers took care of the monkeys and waited for the merchant to return.

But nobody came.

They ran to the employee.

But he had already left too.

The villagers then realised that they had bought the useless stray monkeys for £700 each and were unable to sell them.

Which all sounds very similar to Bitcoin. If the price goes up what can you do with Bitcoins other than sell them to someone else who thinks they will go up in price even more? And what do you do with your Bitcoins when they fall in value…?

I don’t know, but just like the villagers trading monkeys, Bitcoin will bankrupt a lot of people and make a few people filthy rich.

Narrowing that 22% discount to NAV would be very welcome too.

It is up 50% over the last 12 months, no complaints from me.

Scottish Mortgage (SMT) co-manager Tom Slater has lifted the lid on two of the trust’s newest investments, rocket builder Relativity Space and Adyen, a payments processing firm.

The stocks, which were both bought last year, play into the wider themes of transportation and e-commerce being targeted by the £18.6bn trust.

In an update to investors yesterday, Slater, who co-manages the trust with James Anderson, said he believes traditional business models in both areas are ripe for disruption by companies using new and more powerful technologies.

The trust has a number of holdings taking very different approaches to transportation. These range from drone delivery business Zipline and delivery robot outfit Nuno to rocket companies, such as Elon Musk’s SpaceX, which the Citywire AAA-rated manager discussed in January.

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Relativity Space is the latest addition to the portfolio and a stock that Slater believes can deliver stratospheric returns. The Los Angeles-based aerospace manufacturer builds rockets using 3D printing, making them significantly more economical for the likes of telecoms firms to use to put communications satellites into orbit.

‘They’re using new manufacturing techniques with 3D printing to build rockets, bringing costs down, maybe for smaller cargo volumes, but addressing this really large pool of demand being unlocked by lower prices,’ he said.

SMT bought into Relativity Space, which is privately held, for the first time last November, taking part in a $500m (£363m) funding round. This priced the business at $2.3bn, making it the second most valuable private space company in the world, albeit by some margin, behind SpaceX, which is worth $46bn.

Slater (pictured below) said the ability to put more satellites into space will be transformative for telecoms operators, enabling them to move away from mobile phone masts.

SMT’s Tom Slater believes Relativity Space’s cheap rockets could transform the telecommunications industry

‘Vast opportunity’ in payments
SMT has had several high-profile winners operating in the wider e-commerce market, from retail giant Amazon to online sales operating system Shopify and payments processor Stripe.

Slater bought another payments processing firm, Adyen, for the portfolio last year. It is a rival to Stripe in many markets, but is longer established, having been founded in 2006, highly profitable, and listed on Euronext with a market cap of €60.5bn (£52.5bn).

Stripe is privately held but was valued at an eye-watering $95bn in a March funding round, despite having yet to turn an annual profit.

Where the two companies are complementary is that Adyen is more focused on larger blue-chip clients, Slater said, such as McDonald’s, whereas Stripe has a lot of smaller clients.

‘Stripe not only does point of sale, but also enables companies to take payments across different channels, jurisdictions and geographies, which is a vastly complex process that you can

Good morning onlybpc.
I still like to have a look through the posts- a bit like visiting an old relative (with dementia!)
Stay Frosty.

Another good update today. If that discount to NAV ever closes.....and don't forget the 2.3% divi..

The fees are taken from our cash. Dividend or no dividend, the charges will always be deducted before any divi is paid.

Yes, this a been a dog this last 20 months I have been invested.
I am only down 8% so it is not as bad as others so I will leave it for a while. The 1.9% divi is not to be ignored...

When I read a Buffett quote I know that someone thinks the shxx has hit the fan.
Stay cool, the NAV return on this over the last five years has been 42% 22% 13% 11% and 106%
If the next 12 months is around the 10-20% range I'll be more than happy.
Stat frosty.

SMT buying their own shares is a good thing. It helps narrows any discount to NAV and shows they have confidence in the sp rising.
As good as a director buying shares in his/her own company.

Dies? Does.

That question is asked a lot!
The brokers sell and buy the shares. They have a float, depending on the size of the float and the need of buyers dictates the price set by the brokers.
I'd guess with the recent sell off the brokers have a shed load of shares so they will make the price attractive. If/when the float is looking tight the sp will move up for both sellers and buyers.
Dies that make sense?
In brief- Supply and Demand.

Good luck matey,
I'm sat on 2 million of these at an average of 2.68p. It is my last punt on AIM, it's a flipping jungle.
I'll hang on for another 12 months to see if we get a spike so I can get out....
ITs for me now, steady gains and steady losses!

Lesson learned from this shambles-
Stick to steady returns from ITs.

https://citywire.co.uk/investment-trust-insider/news/boost-for-scottish-mortgage-as-stripe-soars-to-95bn/a1480918

It is best to not look at the sp too often (although I check it often enough!!)
This has not always been a superstar performer- steady yes, but not Galactic.
18/3/2016 the sp was £2.50. 18/3/2020 the sp was £5.19. With a high of £6.40 during that 4 year period.
Very good performance, no doubt but then we had a blast off for the next 11 months to £14 plus so a retrace was bound to happen some time. If this doubles over the next 4 years I would expect most of us to be happy with an sp of £22.50 in 2025?
Have a good weekend.

Nasdaq futures don't look very helpful, showing -0.90 at the moment,

I remember one of the more vociferous posters on this board admonishing me because I stated that SMT was prone to volatility....I replied that rising 100% in a year was in my mind volatile. It appears that we are seeing more volatility!
Let's hope it rises as fast as it has fallen.
I really enjoy some volatility when it is going in our favour. Have a good weekend.

https://www.bbc.co.uk/news/science-environment-56274183

Good luck buddy.