Scottish mortgage trust: a buy or a trap?

Amazin

It's almost 30% down from their all time high at the moment. Personally I think this is just the market, not because SMT'S bad decisions. They have almost 100 years of track records but would like to see what others are thinking. 

A buy right now or avoid? 

Audaxer

I don't know what you mean by "or a trap"? It might keep going down a bit more or start recovering straight away - no ones knows. If it fits with the rest of your portfolio and you plan to hold long term, it is a better time to buy than a few weeks ago.

cattie

I'd be buying if I didn't already have what for me is my max holding. I'm in for the long term, so hopefully there will be a good return by the time I'll need to access my s&s isa nest egg.

Alice_Holt

Amazin said:

It's almost 30% down from their all time high at the moment. Personally I think this is just the market, not because SAT'S bad decisions. They have almost 100 years of track records but would like to see what others are thinking. 

A buy right now or avoid? 

       Go back to 2008 (ish) and SMT was c.60% down. It recovered well over the next 12 (ish) years, though !

       It continues to have a place in my portfolio (held since 1998), but my reduced risk tolerance means I won't be adding to my holding.  The next 10-15 years will determine whether these are good decisions or not.    

Audaxer

Alice_Holt said:

Amazin said:

It's almost 30% down from their all time high at the moment. Personally I think this is just the market, not because SAT'S bad decisions. They have almost 100 years of track records but would like to see what others are thinking. 

A buy right now or avoid? 

       Go back to 2008 (ish) and SMT was c.60% down. It recovered well over the next 12 (ish) years, though !

       It continues to have a place in my portfolio (held since 1998), but my reduced risk tolerance means I won't be adding to my holding.  The next 10-15 years will determine whether these are good decisions or not.    

If you have now reduced your risk tolerance, just wondering if you have crystallised some of the SMT gains over that time by rebalancing your portfolio?

Thrugelmir

Amazin said:

 Personally I think this is just the market, not because SAT'S bad decisions. 

Then our opinions are of no consequence. As we are the market. 

Bravepants

Can someone please explain to me the attraction of SMT?

I don't understand what all the fuss is about an IT with a yield of 0.33%.

Presumably people are expectant of further growth spurts?

ColdIron

It's not an income investment and the dividend yield is irrelevant. The returns come from share price growth

Yield is not return

Since 2016 it's up 250% for me (though that was 300% 3 months ago from memory). That's quite an attraction for many

Alice_Holt

Audaxer said:

Alice_Holt said:

Amazin said:

It's almost 30% down from their all time high at the moment. Personally I think this is just the market, not because SAT'S bad decisions. They have almost 100 years of track records but would like to see what others are thinking. 

A buy right now or avoid? 

       Go back to 2008 (ish) and SMT was c.60% down. It recovered well over the next 12 (ish) years, though !

       It continues to have a place in my portfolio (held since 1998), but my reduced risk tolerance means I won't be adding to my holding.  The next 10-15 years will determine whether these are good decisions or not.    

If you have now reduced your risk tolerance, just wondering if you have crystallised some of the SMT gains over that time by rebalancing your portfolio?

        Yes indeed, the last re-balancing exercise was from SMT into Capital Gearing - quite a different investment fund !

        Although when I first acquired shares in SMT, it was then another general global IT, rather than the more concentrated fund it has become.

Thrugelmir

Bravepants said:

Can someone please explain to me the attraction of SMT?

A belief that the management team will identify the next Tesla at a very early stage. 

Bravepants

Thrugelmir said:

Bravepants said:

Can someone please explain to me the attraction of SMT?

A belief that the management team will identify the next Tesla at a very early stage. 

So it's not really a long term hold, with such a low yield there is little benefit of compounding by the re-investment of dividends.