Scottish Mortgage: Long-term investing for transformative change

In this recent Scottish Mortgage Investment Trust webinar, deputy manager Lawrence Burns discussed growth stocks, volatility, and why the progress of Moore’s Law remains a positive for innovative companies.

Publication date: 10 Feb 2022 

Published by: Baillie Gifford



Lawrence Burns (pictured left) sat down for a webinar with Citywire to discuss growth stocks, volatility, and why the progress of Moore’s Law remains a positive for innovative companies.





The video can also be accessed HERE


The above video gives you some very good insight into why access to entrepreneurs and visionary founders and academics matter.


All investment strategies have the potential for profit and loss. Past performance is not a guide to future returns. A Key Information Document for the Scottish Mortgage Investment Trust PLC is available by contacting us or by contacting Baillie Gifford directly. This communication was produced and approved in January 2022 by Baillie Gifford and has not been updated subsequently. It represents views held at the time of presentation and may not reflect current thinking.


The Scottish Mortgage Investment Trust (SMT:L) is one of the oldest, and largest listed investment trusts in the UK and at Ethical Offshore Investments, we believe that it offers significant upside potential for the longer term investor…… though investors do need to be prepared for volatility. In the video, Laurence does mention on a few occasions that draw downs / pullbacks of over 30% has hit their top holdings on many occasions and how it is important to have that ‘hold’ discipline to take advantage of these superior, high growth potential companies over the longer term.


Current top 10 holdings within Scottish Mortgage Investment Trust are Moderna, ASML, Illumina, Tesla, Tencent, NVIDIA, Meituan, Delivery Hero, Nio and Kerring. 


If you are a long term investors and is interested in investing in the types of innovative companies listed above, I would suggest listening to the above webinar to get a better understanding on why the Trust is investing so much time and effort into such companies. 




This  webinar  recording  should not  be  considered as  advice  or  a  recommendation  to buy, sell  or  hold  a particular  investment. This  communication contains  information on  investments  which does  not  constitute independent  investment  research.  Accordingly,  it  is not  subject  to  the  protections afforded to independent research and Baillie  Gifford and its  staff  may  have  dealt  in  the  investments  concerned.  Investment  markets and conditions  can  change  rapidly  and as  such  the  views  expressed should  not  be  taken  as  statements  of fact  nor  should reliance  be  placed  on these  views  when  making investment  decisions. Baillie  Gifford &  Co Limited is  authorised and regulated by  the  Financial  Conduct  Authority. Baillie Gifford  &  Co Limited is  an  Authorised Corporate  Director  of  OEICs. The  Scottish  Mortgage  Investment  Trust  is  a  listed UK  company, and is  not  authorised  or  regulated by  the Financial  Conduct  Authority. The  value  of  its  shares  can fall  as  well  as  rise  and investors  my  not  get  back the  amount  invested. A  Key  Information Document  for  the  Trust  is  available  by  contacting us.  


The  specific  risks  associated with  the  fund include:


–  The Trust  invests  in  overseas securities.  Changes in  the rates of  exchange may  also  cause  the  value of your  investment  (and any  income  it  may  pay)  to go  down or  up.


–  The  Trust  invests  in emerging markets  where  difficulties  in  dealing, settlement  and custody  could arise, resulting  in a negative  impact  on  the  value  of  your  investment.


–  The Trust  can  borrow  money to  make  further investments  (sometimes  known as  “gearing”  or “leverage”).  The risk  is  that  when  this money is  repaid  by the Trust,  the  value of  the investments may not be  enough to  cover  the  borrowing and  interest  costs,  and the  Trust  will  make  a  loss. If  the  Trust’s investments  fall  in value, any  invested borrowings  will  increase  the  amount  of  this  loss.


–  The Trust  has  significant  exposure  to  private  companies.  The Trust’s risk could  be increased  as these assets may  be more difficult  to  buy or sell,  so  changes  in  their prices may be greater. –  The Trust  can  make use of  derivatives.  The use  of  derivatives  may impact  performance.   All data  is  source  Baillie  Gifford  & Co  unless  otherwise  stated.


Any index data  referenced  is the  property of  one  or more third  party  index provider(s)  and  is used  under license.  Such  index  providers  accept  no  liability  in connection with  this  document.  For  full  details,  see Scottish  Mortgage  Webinar  0122 15202 10007291 Copyright  © Baillie  Gifford &  Co 2015.  Authorised and regulated by the  Financial  Conduct  Authority.


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