Scottish Mortgage Invest... Share Discussion Threads

[topvest] 20/10/2020 20:39

An interesting commentary from Scottish Investment Trust: Huge stimulus packages from central banks and governments, and a view that the tech ‘working from home’ stocks have become safe havens during the pandemic, have driven another surge for these ’growth’ companies, pushing overextended valuations to levels last seen at the dotcom boom. Price as a multiple of sales is more than 10x for some of the popular technology high-flyers, such as Microsoft. In fact, more US stocks are valued this way now than at the height of the dotcom era. US software company Sun Microsystems, hit this level during dotcom mania. Reflecting on the extraordinary valuation a couple of years later, the company’s CEO Scott McNealy famously asked investors: ‘what were you thinking?’ “At 10 times revenues, to give you a 10-year payback, I have to pay you 100% of revenues for 10 straight years in dividends. That assumes I can get that by my shareholders. That assumes I have zero cost of goods sold, which is very hard for a computer company. That assumes zero expenses, which is really hard with 39,000 employees. That assumes I pay no taxes, which is very hard. And that assumes you pay no taxes on your dividends, which is kind of illegal. And that assumes with zero R&D for the next 10 years, I can maintain the current revenue run rate. Now, having done that, would any of you like to buy my stock at $64? Do you realise how ridiculous those basic assumptions are? You don’t need any transparency. You don’t need any footnotes. What were you thinking?” Looks like its happening again!

[madfistbt1] 18/10/2020 09:22

This was in a consolidation period from Mid 2018 for over a year and a half. We are seeing accelerated growth because of the virus, can you imagine how much wealth the likes of Amazon have accumulated in the last 7 months? I See far more reasons this will continue than not in the short term. This will go over £20 before there is a major retrace imo.

[topvest] 17/10/2020 21:46

Most of its investments are in bubble territory. They picked well, but valuations are crazy. Of course they may get even crazier, but sooner or later the bubble will burst!

[madfistbt1] 17/10/2020 12:45

The nasdaq is an average of most companies, the main wealth is from a small amount of companies, amazon being one of them and smts largest holding. The reason this is at an all time high and the nasdaq isn't, is because of good management and share picking. Anyone could just come up with a fund of all shares listed in the nasdaq lol.

[arja] 16/10/2020 15:27

i can not quite understand how this stock is at record high but nasdaq index is not and especially with it's unlisted holdings. any intra day weakness is a reason for buyers to emerge .

[chippyfriday] 13/10/2020 15:17

If it’s a Tuesday...Oh hang on , I’ve got to go and stop this nosebleed!

[spangle93] 12/10/2020 20:52

If it's a Monday, it must be a new record high. I think i've got a nosebleed

[quepassa] 12/10/2020 08:13

Meituan Dianping makes new ALL TIME HIGH at HK$276

[chc15] 09/10/2020 20:39

Yes I have this too, but why the big discount, I don't get it?

[quepassa] 09/10/2020 15:08

The bookies have now dramatically shortened the odds on Biden to win: Biden 11-21 Trump 15-8 If they are correct, one can assume that this should lead to an improvement of US relations with China - which would of course be marvelous news for the markets and in turn for ScoMo with their concentration on US and China tech stocks. It cannot be ruled out that ScoMo has SIGNIFICANT FURTHER UPSIDE POTENTIAL this year if we receive the highly likely post-election Biden Bump to the markets. ALL IMO. DYOR. QP

[quepassa] 09/10/2020 14:56

Coincidentally HRI have just released some stats and a Performance Report. Inception of Fund in 1994 - Subscription Price 100p with NAV of 98.7p Price today 1770p with NAV of circa 2000p NAV has gone up roughly 20x since inception £10,000 invested in HRI in 1994 now worth approaching £180,000. With such solid/stellar performance the ongoing discount to NAV appears to me unmerited. ALL IMO. DYOR. QP

[quepassa] 07/10/2020 16:09

One notes and regrets that there have been no new articles on hXXps://resoluteoptimism.bailliegifford.com/ since May 2019. ALL IMO. DYOR. QP

[quepassa] 07/10/2020 14:46

A highly-respected market interviewee on Bloomberg Radio has just given a three year stock price forecast on Amazon of $7,000. ALL IMO. DYOR. QP

[quepassa] 06/10/2020 07:04

Meituan Dianping UP 4.5% in HK today.

[bdog51] 05/10/2020 15:06

Good to see 10 quid is back in play, what a great IT this is.

[quepassa] 01/10/2020 15:33

What the bookies think. UK and EU to sign a trade deal before 2021. Odds:- Yes: 2-7 No: 2-1

[quepassa] 01/10/2020 15:03

ZILLOW popping further. High-street realtors are destined to go the same way as high-street travel agencies. Into extinction. And replaced by digitisation. Who co-founded Expedia? -Rich Barton. The same Rich Barton who originally co-founded Zillow and who returned to Zillow as CEO last year. ALL IMO. DYOR. QP

[scrabster1] 01/10/2020 14:07

Hit it today between 10:00 and 13:00 before triggering lots of stops !

[chc15] 01/10/2020 13:36

Invetible profit taking here..

[quepassa] 01/10/2020 11:41

Palantir listed and started trading yesterday on the NYSE. ticker; NYSE: PLTR Another great exit and success for ScoMo's unlisted investment strategy. ALL IMO. DYOR. QP

[quepassa] 01/10/2020 10:07

1000p just printed. QP

[chc15] 01/10/2020 09:50

Almost there..

[quepassa] 29/9/2020 15:05

Remarkably good results today from Baillie Gifford stable-mate Pacific Horizon. The commentary and outlook make fascinating reading. ALL IMO. DYOR. QP