I’d invest £10k in the Scottish Mortgage Investment Trust

first_img “This Stock Could Be Like Buying Amazon in 1997” Rupert Hargreaves | Saturday, 15th May, 2021 | More on: SMT 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. Simply click below to discover how you can take advantage of this. Image source: Getty Images 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! Rupert Hargreaves has no position in any of the shares mentioned. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK owns shares of and has recommended Amazon. The Motley Fool UK recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon.  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.center_img Our 6 ‘Best Buys Now’ Shares The Scottish Mortgage Investment Trust (LSE: SMT) has lost around 25% of its value since hitting an all-time high of 1,415p around the middle of February. However, as a long-term investor, this doesn’t concern me at all. In fact, by taking a step back, it becomes clear how insignificant this decline is in the grand scheme of things. Over the past 12 months, the stock has returned nearly 55%. 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…While past performance should never be used as a guide to future potential, based on Scottish Mortgage’s past successes, I think the recent decline in the trust’s share price could be a fantastic buying opportunity. Scottish Mortgage opportunityWhen I refer to the investment trust’s past successes, I’m not referring to its stock price. Instead, I’m pointing to the firm’s track record picking investments. Over the past decade, the investment company has earned a reputation as an astute growth investor. Accordingly, it searches the market for the best growth stocks.These aren’t just companies with high growth rates. The investment manager is looking for enterprises that have a substantial competitive advantage. This can indicate the businesses selected will continue to grow year after year and get better at what they do. Picking these sorts of companies isn’t easy. Most professional investors fail. However, Scottish Mortgage has succeeded because it has such a strong reputation, it’s easy for the trust to build positions in firms before they even go public. For example, in the middle of March, the investment manager received a boost when one of its private holdings, Stripe, achieved a record $95bn valuation. Key advantages As a closed-ended investment company, Scottish Mortgage also has advantages. Unlike other funds, it doesn’t have to buy and sell securities to meet inflows and outflows. It also has more flexibility where it can invest and for how long. The firm has held a stake in Amazon for nearly two decades. It can also invest where some investors might be unwilling, or unable, to invest. Some 24% of the portfolio is currently invested in Chinese securities, with 37% in US stocks. Its largest holding is Chinese tech giant Tencent, and the trust’s managers believe “the pace of innovation at scale in China now exceeds anything we can find in the rest of the world.“All of these advantages have helped the firm achieve the record it has over the past five years. It’s returned 322% since May 2016. I think it would be unreasonable to say I believe the trust can repeat this performance in the years ahead. But I believe the advantages outlined above will persist, which may help Scottish Mortgage pick the market’s next big winners.Of course, success isn’t guaranteed. Like all investment companies, Scottish Mortgage has and will continue to make mistakes.Investing in growth companies can be a risky business. These stocks are also highly volatile. So the trust might not be suitable for all investors. Nevertheless, as a way to invest in some of the world’s growth champions, I think Scottish Mortgage has an unrivalled offer. That’s why I’d invest £10k in the business right now. 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. See all posts by Rupert Hargreaves I’d invest £10k in the Scottish Mortgage Investment Trust 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.last_img

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