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SMT thoughts and advice
Comments
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Hopefully the share price will "settle" before SPAX is included in index funds.
If you want to be rich, live like you're poor; if you want to be poor, live like you're rich.0 -
When the original private investors (the Venture Capitalists and insiders) start selling their shares in late June, July and August the SPAX price is going to be a rollercoaster ride.
$1.7tn valuation seems to be far too high to me.
I suspect it will be much cheaper later on.
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Luckily I think it's only heading to NASDAQ, for now.
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I read this as saying that the FTSE Global Equity Index Series, which means both the FTSE Developed World and FTSE ALl-World indices, will include it, with the weighting of the under 5% that is actually being floated now, just 5 working days after the IPO.
FTSE FAQ Document - IPO Fast Entry Market Consultation Results
For the FTSE Developed World Index, that will be about 0.08% of it. When NASDAQ includes it, it will be at 3 times the amount that is being floated.
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Ah yes, I just saw FTSE are including it. S&P aren't, and MSCI probably are, but not for a while.
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If I owned SMT I'd have serious governance questions given the 20% Space X allocation and general high tech slant. I know that SMT is about growth and innovation, but this seems very risky and one dimensional. I hope people that buy SMT realize that they are in a fund that is far more risky than a general global equity index fund.
And so we beat on, boats against the current, borne back ceaselessly into the past.1 -
I think Scottish Mortgage investors (and I am one, with a modest amount of my portfolio) do mostly know it's riskier; that's been its style for a long time. I think it's that big because of the growth of investment some years ago this was in January, before the latest revaluation (which was still below the IPO valuation):
The UK’s largest investment trust, Scottish Mortgage SMT, has already made a significant paper profit on a 2018 bet on SpaceX, turning a USD 200 million stake into USD 3.3 billion. This stake represents 15% of the trust’s portfolio and makes SpaceX the top holding.
Which UK Investment Trusts Hold SpaceX Shares? | Morningstar UK
Yes, they might have been able to find someone to sell to, but they reckon there is still growth potential from that valuation. I do have my doubts about the IPO valuation, and so I might trim my holding (part is unprotected from CGT, so I'll probably keep that).
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Yes, this would include Global All Cap too.
If you want to be rich, live like you're poor; if you want to be poor, live like you're rich.0 -
I think it's a matter of degree. 20% in a single company and a high exposure to AI would make me very nervous.
And so we beat on, boats against the current, borne back ceaselessly into the past.0 -
It's long been the way SMT operates. Same with Tesla previously and other big holdings that are left to run rather than being sold down.
Remember the saying: if it looks too good to be true it almost certainly is.0
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