SMT Investment

virenque

Tesla up 3.5%. SMT up 3.5%. Seems weird to invest in a fund so tied to one stock.

MarkCarnage

virenque said:

Tesla up 3.5%. SMT up 3.5%. Seems weird to invest in a fund so tied to one stock.

I think this is correlation not causation. Tesla holding is now just over 4% of SMT. They have sold a fair amount of stock, so I don't think it could by any stretch be described as 'tied' to it. 

Thrugelmir

MarkCarnage said:

Thrugelmir said:

MarkCarnage said:

SMT has been a long term holding of mine. Well over 10 years. It has had periods of significant volatility before and will do again. 

Any more tips? SMT didn't buy it's holding in Tesla until 2012. I need your crystal ball. 

Not really! I reckon that I've probably had one very successful pick every 8-10 years! Pantheon Participations in mid 90s, before it restructured, SMT started buying in 2008/9 after it fell heavily, and BG Shin Nippon in 2011 when Japan and it both looked very cheap. I've had one or two other less successful ones, fortunately small holdings which got smaller. Ground Rent Income Fund being one....most of my holdings have been more boring and delivered decent but not spectacular returns. 
I think that we may be in place now where wealth preservation becomes more important compared to major gains. 
You are right, SMT began buying Tesla almost 10 years ago. 

Shame! 

Thrugelmir

BG (across all their funds) have been liquidating their exposure to Tesla for the past two quarters. Challenge is to find a suitable home for the funds. 

INRG in terms of some of the individual stocks in the basket became overvalued. Not likely to excite again for the foreseeable future. Now that the hot money has drifted elsewhere. 

Bobziz

Thrugelmir said:

BG (across all their funds) have been liquidating their exposure to Tesla for the past two quarters. Challenge is to find a suitable home for the funds. 

INRG in terms of some of the individual stocks in the basket became overvalued. Not likely to excite again for the foreseeable future. Now that the hot money has drifted elsewhere. 

I understand INRG has undergone significant changes recently or will do soon. More than double the number of holdings and a revised weighting system. Less pure green energy too I believe. Should certainly be less volatile and less exciting too. As for short term direction, who knows !

csgohan4

INRG is tanking really hard, just as any other investments, they can go up and down, will this fund have a long term outlook?

Steve182

csgohan4 said:

INRG is tanking really hard, just as any other investments, they can go up and down, will this fund have a long term outlook?

Maybe INRG will, but I see a longish wait.

The global drive for renewable energy, and EV's, which I don't see subsiding anytime soon also brings other opportunities. 

It has already helped fuel a significant increase in demand for certain metals. Copper, to name just one has doubled in 12 months.   Aluminium, tin, lithium etc have all seen huge price increases.

Increases have occurred in many other metals, not connected with renewables or EV's, like PGM's, iron ore and lead.

Gold price looks like it's on the up so may well exceed 2020 levels if the trend continues.

Some say this could be the start of another commodities supercycle. Who knows? What cannot be ignored is that prices are soaring and metal miners are now significantly outperforming the market.  There is nothing I see that's likely to cause this to slow down anytime soon.

I did have some invested in INRG, which I've now moved to Amati strategic metals fund, which I expect to be a solid performer over the coming months, or longer.