Why I’d buy Scottish Mortgage Investment Trust today

first_imgSimply click below to discover how you can take advantage of this. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Harshil Patel | Monday, 15th March, 2021 | More on: SMT “This Stock Could Be Like Buying Amazon in 1997” Harshil Patel owns shares of Scottish Mortgage Investment Trust and Tesla. The Motley Fool UK does not own shares in any company mentioned in this article. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Why I’d buy Scottish Mortgage Investment Trust today Enter Your Email Address Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge!center_img Our 6 ‘Best Buys Now’ Shares Scottish Mortgage Investment Trust (LSE:SMT) was one of my top picks to buy in March. In what has been a volatile few months, the current depressed share price in the Baillie Gifford technology fund has created a buying opportunity in my opinion.I already own Scottish Mortgage Investment Trust in my Stocks and Shares ISA, but I tend to keep some cash available to take advantage of new investment ideas as they arise. I believe this could be one of those opportunities.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…My favourite technology fundAt 112 years old, Scottish Mortgage Investment Trust is considered to be Baillie Gifford’s flagship investment trust. Its joint fund managers, James Anderson and Tom Slater, have built a reputation for identifying the best growth opportunities in expanding markets. They have a long-term outlook and look to invest in great leaders that are operating businesses with huge business opportunities.I first invested in this predominantly technology-based fund a few years ago. At the time, the fund’s investment in Tesla raised some eyebrows. It was seen as risky, unprofitable, and overvalued by many. However, Scottish Mortgage was an early backer of Tesla, first investing in 2013 when its share price was around $6.Patience paid off for Scottish Mortgage. After several years of lacklustre share price performance, Tesla’s shares climbed a phenomenal 743% in 2020. As the company grew, so did its proportion in the fund. In fact, in recent months, the fund has had to sell some Tesla shares to bring its weighting down.More than a one-hit-wonderScottish Mortgage Investment Trust’s philosophy of investing in potentially world-changing markets is being proved right, in my opinion. As a long-term investor, I’d be happy to buy some more shares today.Far from being a one-hit-wonder, I believe the fund has several interesting investments, some of which are currently private enterprises. Part of the benefit of investing in Scottish Mortgage Investment Trust is that it allows me to be exposed to some unlisted companies that I wouldn’t be able to invest directly in as an individual investor.For instance, in 2020, Scottish Mortgage added the unlisted Swedish battery maker Northvolt to its portfolio. Founded in 2016 by former Tesla executive Peter Carlsson, Northvolt aims to develop the world’s greenest battery and establish one of Europe’s largest battery factories.The RisksAfter a phenomenal 110% gain in 2020 that was led significantly by the fund’s investment in electric vehicle stocks Tesla and NIO, some might argue that these gains could be difficult to replicate again.Risks in investing in Scottish Mortgage Investment Trust could also be the technology sector in general. One of the reasons for its recent near 30% decline came from a rotation from the technology sector to sectors more linked to economic recovery.Vaccine progress, a $1.9tn U.S. fiscal stimulus package and further signs of economic recovery helped push up bond yields. This in turn negatively impacted technology stocks. Further gains in bond yields could cap gains in technology shares in the near term. Image source: Tesla Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. See all posts by Harshil Patellast_img

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