We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

SMT Investment

Options
I’be been waiting for an entry point into SMT but I thought it was far too expensive. However, now it seems more appealing at a 5 % discount and down around 30% from the year high. It may fall further but I will invest on Monday. Anybody else have an opinion?
«1345678

Comments

  • dunroving
    dunroving Posts: 1,903 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    Yes. If you take the plunge, don't check the price until at least 6 months later. ;-)

    Or if you check it every day after you buy, and it goes down, remind yourself you still got it much cheaper than if you bought at the year high.
    (Nearly) dunroving
  • Apodemus
    Apodemus Posts: 3,410 Forumite
    Ninth Anniversary 1,000 Posts Name Dropper Combo Breaker
    I've been waiting for an entry-point into SMT since it crossed £3.00 but have always been behind the curve and always thought it too expensive! :lol:
  • BuildTheWall
    BuildTheWall Posts: 112 Forumite
    Fourth Anniversary 10 Posts
    Best time to invest is now (I mean whenever it’s possible). Try to time the market and lose out. 
    As dunroving says, don’t look at markets every day. 
  • Steve182
    Steve182 Posts: 623 Forumite
    Fourth Anniversary 500 Posts Photogenic Name Dropper
    I've not really got spare cash to invest right now, but I'm tempted to sell another investment to top up. If it drops further that temptation will almost certainly become a reality. 
    “Like a bunch of cod fishermen after all the cod’s been overfished, they don’t catch a lot of cod, but they keep on fishing in the same waters. That’s what’s happened to all these value investors. Maybe they should move to where the fish are.”   Charlie Munger, vice chairman, Berkshire Hathaway
  • Linton
    Linton Posts: 18,139 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Hung up my suit!
    The discount may not be correct since the published NAV does not reflect Friday's falls.  The most recent NAV was published on Thursday.

    My opinion is that if the investment is right for your objectives then buy it.  If it isnt dont.  Determining the true value of a fund like SMT based on growth assets is impossible.  A high growth asset is almost certainly incorrectly priced - by the time it matures, if it ever achieves maturity,  it could turn out to be worth very little or a fortune.
  • Steve182
    Steve182 Posts: 623 Forumite
    Fourth Anniversary 500 Posts Photogenic Name Dropper
    Linton said:
     A high growth asset is almost certainly incorrectly priced - by the time it matures, if it ever achieves maturity,  it could turn out to be worth very little or a fortune.
    Agree completely

    The following youtube presentation from Scottish Mortgage shows exactly that, I found it very interesting. They show a chart from their worst investments, losing 100%, up to their best, making 2400%
    https://www.youtube.com/watch?v=rpBESgEo3m8
    “Like a bunch of cod fishermen after all the cod’s been overfished, they don’t catch a lot of cod, but they keep on fishing in the same waters. That’s what’s happened to all these value investors. Maybe they should move to where the fish are.”   Charlie Munger, vice chairman, Berkshire Hathaway
  • Bobziz
    Bobziz Posts: 657 Forumite
    Fifth Anniversary 500 Posts Name Dropper
    I tend to agree. Money pumped into the economy, savings rates not worth having, charts for some companies looking very enticing for retail customers wondering what to do with their money. 

    Look at The 20 year chart for SMT and ask what has changed so dramatically to warrant such an increase. Future earnings brought forward by COVID doesn't seem to cover it....

    A few things happening over the pond this coming week which could end up being the straw that breaks the camel's back, or not...good luck all.
  • Bobziz
    Bobziz Posts: 657 Forumite
    Fifth Anniversary 500 Posts Name Dropper
    The s&p on the 5 year chart looks a long way from the 50 day MA too.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Bobziz said:

    Look at The 20 year chart for SMT and ask what has changed so dramatically to warrant such an increase.
    Change of investment focus. Neil Woodford was becoming a cult hero 20 years ago with Perpetual Income. . 
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.7K Banking & Borrowing
  • 253K Reduce Debt & Boost Income
  • 453.4K Spending & Discounts
  • 243.7K Work, Benefits & Business
  • 598.5K Mortgages, Homes & Bills
  • 176.8K Life & Family
  • 256.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.