SCOTTISH MORTGAGE PLC (SMT) Shares

ABOUT SCOTTISH MORTGAGE PLC

Scottish Mortgage Investment Trust plc is a closed-end fund incorporated in the United Kingdom.

Their aim is to maximize total return to shareholders at the same time as generating real dividend growth through a diversified portfolio. Scottish Mortgage is managed by Baillie Gifford & Co Limited, an Edinburgh-based investment management partnership.

The origins of Scottish Mortgage lie in the credit panic of early 1900 when the popularity of motorcars created demand for tyres. Rubber planters in Southeast Asia were keen to provide, but credit was difficult to obtain. In Edinburgh Colonel Augustus Baillie and Carlyle Gifford spotted the opportunity and established The Straits Mortgage and Trust Company Limited to lend money to them.

Since 1913 the Trust’s investment remit has widened to include bond and equity markets worldwide and its name changed to The Scottish Mortgage and Trust Company Limited.

OVERVIEW OF SCOTTISH MORTGAGE PLC

• Scottish Mortgage Investment Trust plc invests internationally, mainly in quoted securities. Its portfolio is concentrated in a relatively small number of holdings where investments reflect the global nature of the trust with holdings in fast-growing economies such as China and Brazil.

• Investments are made in companies at different stages in their evolution, across very different industries and geographies.

• They follow simple, transparent remuneration policies that reward superior strategic and operational endeavor and do not believe in one-size-fits-all governance.

VISION & VALUES OF SCOTTISH MORTGAGE PLC

• Scottish Mortgage Investment Trust plc manager, Baillie Gifford believes to be ‘actual’ investors with the responsibility to behave as supportive and constructive long-term investors. Consequently, they are wary of prescriptive policies and rules and rather favours a small number of simple principles which help shape interactions with companies.

• They prioritise long-term value creation although this may lead to sub-optimal long-term outcomes.

• Thus, they regard it as their responsibility to steer businesses away from destructive financial engineering towards activities that create genuine economic value in the long run.

• They believe that corporate success is only sustainable if a business’s long-run impact on society and the environment is taken into account, hence have put in place a sustainable value chain to ensure meeting customers’ needs while maximising return, income, growth and capital appreciation for shareholders who purchase shares with them.

MARKET PERFORMANCE OF SCOTTISH MORTGAGE PLC

• Scottish Mortgage Investment Trust plc’s shares are traded on the Financial Times Stock Exchange (FTSE) under the stock symbol SMT listed in the Sector: Alternative Investment Instruments.

• There has been little change in Scottish Mortgage’s portfolio in the last twelve months. Of the top thirty holdings last year they still own 28. Those that were sold had been replaced because of other opportunities offering more growth potential.

• By June 2019 the company held total assets of £ 8,441,347,357.09. Share price had dropped with 6.4 % by September, NAV by 1.3 %.

• Their fair performance in the market gives shareholders confidence to buy or sell shares and expecting sound dividends and returns in 2019 and further.

Buy SCOTTISH MORTGAGE PLC stocks / shares – A Step by Step Guide how to Buy / Purchase SCOTTISH MORTGAGE PLC Stocks or Shares online.

Before buying any stock or share one has to consider a few factors.

STEP 1: PROPER RESEARCH IS ESSENTIAL

Upon deciding you want to buy SCOTTISH MORTGAGE PLC Stocks / Shares, it is critical for the serious investor to do proper research into the said company. Its values should align with those of the investor’s current portfolio. An investor needs to familiarise himself with the basics and history of the company, as well as its leadership and performance in the market. Its company reports should also be scrutinized.

Consultation with a brokerage firm can also assist in determining whether investing in a specific company will complement the investor’s current portfolio. The investment “risk ladder”, which identifies asset classes based on their relative riskiness, is another useful tool when determining which company’s stock / share is the best to buy.

STEP 2: CALCULATE THE AMOUNT OF INVESTMENT IN SCOTTISH MORTGAGE PLC STOCKS / SHARES

It is important for an investor to monitor his total investment in stock in order to keep his portfolio aligned to his investment strategy. The overall value of his holdings will change with the fluctuation in stock prices, which can throw his portfolio off balance. To determine the amount to invest, multiply the number of shares of each stock by its current market price to determine the total investment in that specific stock. For example, if you own 100 shares of a US Dollar 5 stock, multiply 100 by US Dollar 5 to get US Dollar 500.

STEP 3: DECIDE ON THE STOCK / SHARE ORDER TYPE

Investors can choose from a market order, a limit order, a stop order (also referred to as a stop-loss order) or a buy/sell stop order. It is important to familiarise yourself with each type’s pros and cons before deciding which one will suit your current stock profile best. An investor should be guided in this choice by his investment objective.

STEP 4: OPEN A BROKERAGE ACCOUNT

A brokerage account – also known as taxable investment account – is similar to a retirement account, but more flexible. Where a retirement account has limitations on the amount of money that can be contributed annually, and restrictions on when funds can be withdrawn, a brokerage account is more flexible. The latter has no income or contribution limit and the investor can withdraw his money at any given time. This flexibility, together with its potential investment gains, makes a brokerage account more attractive to serious investors. Brokerage accounts are ideal for goals or savings that are further than five years away, but closer than retirement. It can also supplement an investor’s emergency savings.

STEP 5: COMMIT AND PURCHASE SCOTTISH MORTGAGE PLC STOCKS / SHARES

Lastly, commit to the stock. Pro Tip: Monitor the value of your stock to ensure you have a growing stock value and dividend pay-out.  Regularly check the share price online to ensure your investment delivers a positive return on investment. You are now a proud owner of SCOTTISH MORTGAGE PLC stocks / shares.

5 Questions to ask yourself before purchasing any stocks or shares.

1. Is it the best time to buy this stock / share?
2. Should I buy SCOTTISH MORTGAGE PLC stocks / shares in the current economic climate?
3. Can I afford to buy this stock / share?
4. What is the forecast of the stock / share growth?
5. What is the current price per earning ration on the stock / share?