However, it’s never too late to make amends. Indeed, I believe it’s possible for someone aged 50 to still aim for a SIPP worth a cool quarter of a million. Let me explain.

Taking advantage

The great thing about a SIPP is that contributions up to a certain level attract tax relief. The precise figure depends on personal circumstances but, for most people, it’s likely to be a large number.

Another attraction of a SIPP is its flexibility. All types of investments can be held. Here, I’m going to focus on stocks and shares.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

Getting started

To begin, we need to decide on an appropriate age at which to retire. Given that today’s 50-year-olds are likely to receive the State Pension when they’re 67, this seems like a reasonable starting point. This gives an investment horizon of 17 years.

With an annual return of 8%, it means monthly contributions of £592 (including tax relief) would be needed to get to £250,000. Admittedly, this is a chunky number.

That’s why it’s better to start earlier. Deep down, we all know this. But as evidence, investing £54 for 45 years at 8%, would grow to £250,456 after 17 years. 

So is 8% achievable? By picking the right stocks, I think it is.

What does recent history show?

Looking back five years to June 2021, there are 39 stocks on the FTSE 100 that have returned more than this. On the FTSE 250, there are 54. In other words, over a quarter of the UK’s largest 350 listed companies have met our target. If dividends were included, the number would be even higher.

Of course, there are no guarantees that history will be repeated. But in the absence of a crystal ball, it’s all we have to go on.

A popular choice

Among AJ Bell’s clients, Scottish Mortgage Investment Trust (LSE:SMT) is one of the most popular stocks to hold in a SIPP. Why? Well, I suspect many like the trust’s philosophy of only investing in “the world’s most exceptional public and private growth companies”.  

However, there are risks. Tech stocks can be volatile. Indeed, the trust’s share price has risen by an average of less than 5% a year since June 2021. And its net asset value has under-performed when measured against the trust’s chosen benchmark.

Another potential issue is that a large proportion of its investments (41.5%) are in unquoted companies, which can be difficult to value. Having said that, it could see a large paper gain — possibly up to £1.75bn — if the SpaceX IPO goes as many are predicting.

On the plus side, taking a position in the trust means risk is spread across 102 companies. And it will only take a handful of these to benefit from the anticipated AI revolution for it to be a huge winner.

That’s why I think Scottish Mortgage Investment Trust is a quality UK stock that could be considered for a SIPP. What’s more, there are loads of others to choose from as well.

Should you invest £5,000 in Scottish Mortgage Investment Trust Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Scottish Mortgage Investment Trust Plc made the list?

James Beard owns shares in Scottish Mortgage Investment Trust plc.

The post How to target a £250,000 SIPP, starting at 50 appeared first on The Twelfth Magpie.

The company recently dropped its target valuation, now aiming for $1.8trn or more. That should still mean a huge market cap — and the plan to raise up to $75bn on the day sets it up as potentially the biggest IPO in history. But the company was previously talking about $2trn or more.

For those who missed out on the stock price explosions at Tesla and Nvidia, is this the next great growth opportunity?

Ambitious IPO valuations

OpenAI and Anthropic are also on the IPO horizon, though when they might make their debuts is still unknown. But talk is of both of them commanding valuations around the trillion-dollar level.

There’s one big difficulty facing potential shareholders in SpaceX stock, however. How can we decide a fair valuation when there’s no profit.

SpaceX reported a $4.94bn net loss in 2025. That came from revenue of $18.7bn — with huge amounts then invested in Starship research. And the company does have a current source of profit in Starlink. But the xAI division, which includes X (formerly Twitter) is rapidly consuming capital.

Invest in ambition?

Our mission is to build the systems and technologies necessary to make life multiplanetary, to understand the true nature of the universe, and to extend the light of consciousness to the stars.

— SpaceX IPO prospectus

I’m all for long-term thinking when it comes to investing. But I can see a couple of wagers I’d expect to come good here. I rate human life as unlikely to become multiplanetary while I’m still breathing. And I reckon there’s near-zero chance we’ll ever make it to the stars — not if the speed of light has a say in it.

But, I confess the prospect of owning shares — maybe just a few — in space exploration has its appeal.

Do you already own SpaceX?

And then I remember, I already have some! They’re part of my investment in Scottish Mortgage Investment Trust (LSE: SMT). The investment trust owns shares in Magnificent 7 companies like Nvidia and Meta Platforms too.

It also has holdings in Mercadolibre, Shopify, Moderna, and other stocks that spread the risk from potential AI volatility. Diversification is a good thing.

For investors who want a bit of space action, but don’t want to go all-in on a single company… I reckon Scottish Mortgage is definitely one to consider.

SpaceX is top of the holdings list, accounting for 18% of shareholders’ funds and worth around $3bn. With my Scottish Mortgage holding only fairly modest, that means I really don’t have a lot in SpaceX. But it’s the most boldly I’m likely to go when it comes to space travel!

Or maybe…

Well, I say that. But you know, I really can see myself considering buying some SpaceX stock directly some time. Though not at IPO — simply because historically more than half lose money in their first year.

But to those considering buying on the day… I wish you bon voyage.

Should you invest £5,000 in Scottish Mortgage Investment Trust Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Scottish Mortgage Investment Trust Plc made the list?

Alan Oscroft owns shares in Scottish Mortgage Investment Trust.

The post Is the SpaceX IPO the best growth stock opportunity in a generation? appeared first on The Twelfth Magpie.

New research from AJ Bell has shed some light on how much we Brits need in retirement, though. It makes for fascinating — and at the same time petrifying — reading…

What did it say?

According to the financial platform,

the average taxpayer in retirement doesn’t have enough income for a moderate standard of living, and falls well short of the levels that the average Brit is hoping for.

Why’s that, you ask? AJ Bell data last year showed the average Brit expects to need £39,000 a year to retire comfortably. But according to fresh analysis based on HMRC data, the average taxpayer in 2023/2024 received annual incomes of:

• £26,200 if aged 65 to 69.
• £22,700 if aged 70 to 74.
• £21,800 if aged 75 and above.

But here’s the thing: this data excludes pensioners who are not earning enough to pay income tax. The result? Many retirees could be struggling to survive on even lower incomes.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice.

It’s never too late!

The data underlines why it’s important to build a retirement plan. And the sooner you start the better, allowing your investment gains to generate their own returns over time (known as compounding).

But the power of the SIPP means even those starting late on their investing journey can build a large enough nest egg for a comfortable retirement. This reflects:

• The flexibility to buy higher-performing assets like stocks.
• Tax relief of 20% to 45% that boosts contributions.
• Protection from certain taxes which boosts compound returns.

Let’s say you’re a higher-rate taxpayer who’s able to invest £500 of their own cash a month. Tax relief of 40% bumps that up to £833. And you reinvest any dividends to boost the compounding process that’s already benefitting from capital gains and dividend tax exclusions

If you can achieve an average annual return of 8%, you’ll have a SIPP worth £792,205 after 25 years. This could then throw off £55,454 a year in dividend income if you bought 7%-yielding shares.

What should you buy?

Never mind that £39,000 that AJ Bell says most Brits expect they’d need a year to retire comfortably. That figure beats the £43,900 that Pensions UK has worked out retirees actually need.

Importantly, our figure also excludes any boost from the State Pension.

So what could you buy to start your investing journey? Investment trusts like Scottish Mortgage Investment Trust (LSE:SMT) deliver excellent wealth-building opportunities with reduced risk. The average annual return here is an incredible 18% over the last 10 years.

How does Scottish Mortgage do this? It diversifies investor cash across a wide range of technology companies (50 in total), providing protection in case one or two come under pressure. Key holdings include market leaders like Nvidia and Microsoft.

Could future returns underwhelm if an economic downturn hits? It’s possible. But over the long-term, I’m confident unstoppable trends like AI, robotics and cloud computing mean Scottish Mortgage will keep delivering blockbuster SIPP returns.

Should you invest £5,000 in Scottish Mortgage Investment Trust Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Scottish Mortgage Investment Trust Plc made the list?

Royston Wild does not hold any positions in the companies mentioned.

The post How much money do you need to retire comfortably with a SIPP? appeared first on The Twelfth Magpie.

Today (27 May), we got the growth trust’s results for the 12 months to 31 March. Here’s what investors should know from the report.

Star of the show

Last year, Scottish Mortgage’s net asset value (NAV) total return was 27.4% compared to the FTSE All-World Index‘s 18%. So it outperformed nicely during the period.

The star of the show was unlisted holding Space Exploration Technologies Corporation (aka SpaceX). At the end of March, it represented more than 19% of assets, up from 7.8% the year before.

On SpaceX, manager Tom Slater commented: “Though the launch vehicles generate the media attention, the valuation has been driven primarily by its satellite communications subsidiary, Starlink, which is building the kind of predictable, highly profitable revenue that the best software businesses aspire to. The difference is that its assets are in orbit and extraordinarily difficult to replicate“.

The trust invested £151m in SpaceX several years ago, and that holding is currently worth almost £3bn. This highlights perfectly the reasons for investing in transformative private companies, with these bets starting to pay off.

Other positive contributors to performance included TSMC (+99.1%), ASML (+94.2%), and Nvidia (+57.5%). All three firms are at the epicentre of the global AI infrastructure buildout.

The acceleration of artificial intelligence into a global infrastructure buildout is, in our judgment, the most important structural change in the global economy since the emergence of the internet, and we are still in its early stages.
Tom Slater.

Scottish Mortgage’s 10-year NAV total return of 435.2% comfortably beats the 233.9% generated by the FTSE All-World Index. But getting from A to B during this time has been far from comfortable, as the volatile share price chart shows.

Finally, the dividend was hiked 4.3% to 4.57p. While that only translates into a 0.3% yield, the trust is classed as an AIC Dividend Hero, having increased its payout for 43 straight years.

Where next?

Looking ahead, we’re about to enter a bit of a strange period once SpaceX goes public in June. Because to manage risk, the trust’s huge holding will surely have to be reduced whenever restrictions are lifted on the selling of shares.

But rather than a straight 180 days, SpaceX has proposed a rather unusual schedule. Upon Q2 results (around August/September), existing investors can sell up to 20% of their shares. But if the stock is doing well, it will be 30%.

Then Q3 (October/November) will see another 28% unlocked, before the 180 days elapse around Christmas. Adding to the complexity, there will also be various time-based slots to sell smaller positions.

Throughout the summer then, the Scottish Mortgage share price could be buffeted about by what’s happening with SpaceX. This adds risk, especially if the IPO is poorly received on valuation grounds.

To finish, it’s worth mentioning that the NAV discount that Scottish Mortgage has spent the last four years trading at has disappeared. Indeed, there’s now a 6.3% premium.

Long term, I’m still bullish, but investors considering the stock should recognise the near-term risks with SpaceX.

Should you invest £5,000 in Scottish Mortgage Investment Trust Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Scottish Mortgage Investment Trust Plc made the list?

Ben McPoland owns shares in Nvidia, Scottish Mortgage, and TSMC.

The post Now above £15, where next for the flying Scottish Mortgage share price? appeared first on The Twelfth Magpie.

Under talismanic manager James Anderson, who took the helm in 2000, the previously obscure investment trust had grown to be the biggest and most popular in the UK, worth around £25bn. Maybe too popular, because in 2022 it took an absolute beating.

Scottish Mortgage had become a US tech fund by proxy, and when the sector sold off, its shares crashed by half. With Anderson coincidently resigning that year, the outlook was shaky. But I love a bargain and Scottish Mortgage was suddenly at a discount. Banking on a tech rebound, I dived in. I’m thrilled I did.

Why has this trust done so well?

I bought the stock in May and August 2003 at an average price of 709p per share. Today, they trade at 1,531p. I’m up around 115%. That’s before dividends, although with a trailing yield of 0.3%, the income is relatively earthbound.

The last 12 months has been particularly buoyant, with the Scottish Mortgage share price flying 52%. That’s partly down to the upcoming flotation of SpaceX, Elon Musk’s extraterrestrial adventure. It will be valued at between $1.75bn and $2bn when it floats on 12 June, making it the largest IPO in stock market history.

Scottish Mortgage got in early. It took a stake in the privately owned company in December 2018, and purchased more through subsequent funding rounds over the next three years. The trust’s investors have benefited from the stellar growth of SpaceX, without directly buying the stock. That initial holding has grown roughly 1,900%. SpaceX now accounts for a hefty 19.3% of the trust’s total portfolio.

The second biggest holding, Taiwan Semiconductor Manufacturing Company, is just 6.5% of the total, with Nvidia at 5.6%, Bytedance at 4.8%, and Amazon at 4%. Any investor considering it today must also check out what else it holds. They may simply end up doubling down on a string of stocks they already own.

What else am I buying here?

US tech is enjoying a return to form, boosted by the excitement surrounding SpaceX and other super-sized IPOs, such as OpenAI, Anthropic, Databricks, Stripe, and Anduril. Despite this, there’s no way I’d consider upping my personal stake in Scottish Mortgage today.

I’m heavily exposed to tech through both an S&P 500 tracker, FTSE 100 investment trust Polar Capital Technology, and Nvidia. If sceptics are right about that AI bubble, it will explode messily across my portfolio. Also, I’ve learned to mistrust the excitement around IPOs, as share price declines often follow.

There’s understandable excitement around this one. SpaceX opens up massive new possibilities such as massive arrays of orbiting solar panels transmitting energy back to earth. It could prove a great leap for mankind, but it’s also a leap into the dark.

The hype is likely to go into overdrive in the days ahead. Those who are keen to participate may consider feeding some money into the stock. They should also keep some in reserve, for whatever happens next.

Should you invest £5,000 in Scottish Mortgage Investment Trust Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Scottish Mortgage Investment Trust Plc made the list?

Harvey Jones owns shares in Scottish Mortgage and Nvidia.

The post I’m thrilled I bought Scottish Mortgage shares 3 years ago. Would I buy them today?  appeared first on The Twelfth Magpie.

While it has pulled back a bit from this psychological barrier (as I write), the Scottish Mortgage share price is still up nearly 50% in the past year. So it has strong momentum right now, and shareholders can thank Elon Musk.

Extreme value creation

You see, Scottish Mortgage’s manager Baillie Gifford first invested in SpaceX in December 2018. In total, the trust has invested £151m (around $200m at time of purchase). 

Fast-forward to March 2026, that stake had mushroomed into a massive £2.98bn position — a 1,900% increase!

Musk’s rocket and satellite pioneer has generated huge excitement as it aims to raise as much as $75bn at IPO next month. So Scottish Mortgage’s valuation of SpaceX assumes a $1.25trn valuation.

This gives it a whopping 19.3% position in the portfolio, up from just 0.6% in 2019.

Needless to say, SpaceX has been the biggest contributor to the trust’s returns over one, three, and five years. Over 10? Just the fifth biggest contributor!

This highlights the extreme returns that can be made through Scottish Mortgage’s strategy of investing in disruptive growth companies and holding them long term.

Lock-up concerns

The problem now, of course, is what to do with a (nice) problem called SpaceX. At around 20% of the portfolio, it will surely need to be trimmed to crystalise gains and rebalance the holding to reduce concentration risk.

But as the trust warns: “Regarding our lock-up terms, we do not yet know what restrictions will apply to existing shareholders post-listing, how long any lock-up period will last, or whether Scottish Mortgage will be subject to the same terms as other pre-IPO investors.”

A lock-up period is a set amount of time after a company goes public when insiders are banned from selling their shares. Basically, Scottish Mortgage didn’t know how long it would have to wait to sell shares.

From what I can gather from SpaceX’s newly released prospectus, existing investors will have to wait 180 days before selling. However, this could change, possibly giving Scottish Mortgage an earlier exit.

If not, though, the trust could be forced to forced to carry that massive SpaceX portfolio exposure through to around Christmas. And with the prospectus exposing heavy consolidated net losses — $4.27bn in Q1 2026 alone, driven by massive AI infrastructure spending — the post-IPO price action is surely going to be incredibly volatile. 

A blessing in disguise?

Of course, this could be a blessing in disguise if SpaceX booms upon going public. I wouldn’t bet against that given the speculative mood in space/AI infrastructure stocks right now. Many retail investors will be chomping at the bit to get a piece of SpaceX!

Either way, the next few months are going to be eventful (things often are with Scottish Mortgage).

My move

So what am I doing? Well, I’m not going to sell my Scottish Mortgage shares, as I’m still bullish long term. I’ll keep holding.

But the next few weeks (at least) could be a binary bet on SpaceX. So investors considering the stock should be aware how volatile the stock could soon become.

Should you invest £5,000 in Scottish Mortgage Investment Trust Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Scottish Mortgage Investment Trust Plc made the list?

Ben McPoland has positions in Scottish Mortgage.

The post This FTSE 100 star just hit £15 in my Stocks & Shares ISA for the first time since 2021! appeared first on The Twelfth Magpie.

The trust has a huge stake in Elon Musk’s space exploration company, and if the market accepts a much richer IPO valuation, it could boost net asset value.

But looking more closely at the numbers, it might not be as smooth sailing as some expect.

Why this matters now

Scottish Mortgage sold a massive 1.7m treasury shares on 18 May, which shows how much the IPO is influencing the trust. It currently values SpaceX at $1.25trn, and says that stake was 19.3% of total assets as at 31 March.

The latest market chatter suggests SpaceX could list on Nasdaq under the ticker SPCX as early as 12 June. With talk of a $1.75trn valuation, it would be the biggest IPO in history.

So the first question is simple: will the IPO price prove the trust has been too cautious, or too optimistic?

Why SpaceX shares could tank

SpaceX has finally revealed its financials ahead of the IPO, and the numbers aren’t pretty.

According to reports, the group lost $4.94bn in 2025 on revenue of $18.67bn, while Q1 2026 brought losses of $4.3bn on sales of $4.7bn.

Starlink remains its key breadwinner, with $11.38bn of revenue in 2025. But the wider business is still being dragged down by huge spending, especially around data centre infrastructure for xAI.

So it’s important that investors approach this as a classic ‘growth-at-all-costs’ story:

• Strong revenue growth, but huge cash burn.
• Starlink makes money, yet other divisions still lose heavily.
• AI and space infrastructure could be winners later, but they’re expensive now.

And that leads to the awkward question: what happens if the market decides the dream is too expensive?

Pros and cons for Scottish Mortgage

For Scottish Mortgage, the positives are obvious. A successful IPO at $1.75trn would increase the value of a holding already worth $1.25trn, boosting the trust’s overall net asset value (NAV).

But the downside is also obvious. It’s already a tech-heavy trust with a lot of concentration in the US. That means any disruption to the US tech market could lead to a sharp share price drop.

Fortunately, this risk is mitigated somewhat by more diverse names such as TSMC, ASML, Ferrari and MercadoLibre. But investors must still rely on the fund’s managers to make good decisions on portfolio allocation.

Here’s a simple trade-off of pros vs cons:

Final thoughts

The SpaceX IPO is likely to be one of the biggest stock market events in history, yet it could go either way.

But since Scottish Mortgage is highly diversified, I’m sure it’ll survive any outcome. Still, investors considering the stock should do so with the understanding of potential short-term volatility if things go wrong.

It’s worth noting that over the past 10 years, the share price is up 496.6%, equivalent to a compound average growth rate (CAGR) of 19.7%.

If it can keep up that record, the next decade could be highly lucrative.

Should you invest £5,000 in Scottish Mortgage Investment Trust Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Scottish Mortgage Investment Trust Plc made the list?

Mark Hartley owns shares in Scottish Mortgage Investment Fund.

The post SpaceX’s financials are out ahead of its IPO. What this means for Scottish Mortgage shares appeared first on The Twelfth Magpie.

Back then, the personal finance guru showed how £1,000 invested in the MSCI World Index a decade before would have turned into about £3,790. In contrast, a grand held in his top savings accounts would only have generated £1,270 — losing money to inflation in purchasing power terms!

In the recent show, however, Lewis said that eagle-eyed viewers had pointed out that the market had nosedived soon after, making the returns look a tad rosy. That dip followed the war in Iran.

So, according to updated calculations, how much would £1k in the FTSE 100 and a global tracker fund a decade ago be worth today?

Easily beating cash

According to Lewis’ latest show, here are the various returns (with all dividends reinvested):

• S&P 500: £4,110
• World index: £3,600
• FTSE 100: £2,400
• Cash savings account: £1,290

Based on this, the FTSE 100 has beaten both inflation and cash by some distance. And the world index fund and S&P 500 have still done exceptionally well (note, the S&P 500 has hit highs again recently).

Is this type of return nailed on?

Lewis does point out that there’s no guarantee such returns will be replicated over the next decade. This makes investing more uncertain and therefore higher risk.

Meanwhile, fluctuating market performance is inevitable, making a long-term mindset crucial. However, there are some things that can help mitigate risk.

• Consider passive funds rather than just individual shares
• Invest for a minimum of five years
• Invest regularly rather than with a lump sum (known as ‘pound cost averaging’)
• Buy multiple funds across asset classes (shares, bonds, gold, etc) to increase diversification
• Try not to check stock market performance every day

Not either/or

Now, I’m a fan of passive investing, and I own a couple of exchange-traded funds (ETFs) myself. But I don’t think it needs to be either/or. You can hold both (passive and active).

For example, one active vehicle I own is Scottish Mortgage Investment Trust (LSE:SMT). This fund has done really well, jumping 135% inside the FTSE 100 in past three years. But there have been some big swings up and down along the way.

Scottish Mortgage invests in what it believes are going to be some of the big growth companies of the future. In the past, this led it to stocks like Nvidia and Tesla, which created enormous long-term returns.

However, there’s a big trend involving companies staying private for longer. So Scottish Mortgage also invests in unlisted firms, including the likes of SpaceX, Anthropic, ByteDance, and Revolut.

The valuations of the first two of these names have surged recently as investor excitement about space stocks and AI have reached fever pitch. This does create some risk because many people think these two areas have reached bubble territory.

On the other hand, it proves that the trust’s strategy is working, with SpaceX and Anthropic creating enormous value in the private markets. I think the stock is worth considering as part of a pound cost averaging strategy.

Ben McPoland has positions in Nvidia and Scottish Mortgage Investment Trust.

The post Martin Lewis says £1,000 invested in the FTSE 100 index a decade ago would now be worth… appeared first on The Twelfth Magpie.

But for my money, there’s a lot more to this investment fund than flinging rockets into space, then catching them on their return using chopsticks. The fund has a spectacular track record and could be one of the best buys on the FTSE 100 today. Here’s why. 

Good run

Let’s start with that track record. The stock is up about 10 times in value in the last 15 years and about 20 times in the last 25 years. I could compare to popular FTSE 100 or S&P 500 stocks, but I think the numbers speak for themselves. 

What’s the reason for the excellent performance? In short, the fund bets big on exciting growth stocks – and has a terrific record of picking more winners than losers. SpaceX is the example that everyone has been focusing on of late. But the fund managers bought Nvidia and Tesla long before those stocks enjoyed their best runs. 

Let’s take a look at a few of the fund’s holdings. There are 30 in total from all corners of the globe and in a number of different sectors. I’ve selected five that I think show the breadth and nature of the fund:

• 2.6% – Dutch photolithography producer ASML
• 1.88% – Italian luxury car manufacturer Ferrari
• 1.32% – Chinese electric vehicle manufacturer BYD
• 1.11% – American artificial intelligence and large language model firm Anthropic
• 1.01% – American media and streaming platform Netflix

Is it a buy?

It must be mentioned that there are no guarantees this strategy will work so well in the future. Scottish Mortgage bought many tech companies in an era where tech is dominant. If fears about the artificial intelligence bubble are justified, then we might see a decade or two where technology companies perform below the average. 

Another risk to be aware of is that this is outsourcing the stock selection process. While Scottish Mortgage has an excellent track record, that is not a guarantee or the future. And even the better fund managers can go on a losing streak. Some investors may feel more comfortable with a little more control over their own investments.

Overall? I’m bullish on Scottish Mortgage Investment Trust. I also believe there is a pretty good chance the state-of-the-art growth companies it focuses on could dominate in the years to come as they have the year gone by. I think the stock is worth considering. 

The post SpaceX is just the tip of the iceberg for Scottish Mortgage shares appeared first on The Twelfth Magpie.

The other three, however, have been on fire. Let’s take a look at why, as well as a sixth one I’ve currently got my eye on.

Powerful themes

The trio I’m referring to are Scottish Mortgage Investment Trust (LSE:SMT), BlackRock World Mining Trust, and Pacific Horizon Investment Trust. The first is in the FTSE 100 while the other two are from the FTSE 250.

Here’s how they have performed in the past year (excluding dividends):

• Scottish Mortgage: +45.4%
• BlackRock World Mining: +109.2%
• Pacific Horizon: +92.5%

Each has benefitted from powerful individual investing themes. Scottish Mortgage has seen the value of its SpaceX holding skyrocket higher. In fact, SpaceX could soon become the largest IPO ever.

I’ve had to be patient with this investment. Three years ago, the growth trust traded at a massive discount to its underlying net asset value (NAV) because the market was wary about private holdings like Stripe, SpaceX and ByteDance.

While I do have some concerns about SpaceX’s extreme valuation, I remain bullish on Scottish Mortgage’s wider unlisted portfolio, which now includes Claude maker Anthropic and Revolut. I reckon the stock’s worth considering.

As for BlackRock World Mining, it has surged from its exposure to gold and silver miners. Even after a recent pullback, these precious metals are up about 44% and 158%, respectively, in the past 12 months.

Additionally, the trust has a sizeable weighting towards copper, which itself has increased 38% in value in the last year. Demand for the red metal is accelerating while supply remains constrained.

Accelerating hyperscaler spending on AI infrastructure, alongside electrification, grid expansion and the broader energy transition, is driving demand for both power and materials. Copper sits at the centre of this theme, given its critical role in electrification and power intensive infrastructure.
BlackRock World Mining.

The risk here is a sharp fall in the price of gold, which makes up around a third of the portfolio. This isn’t one I’m looking to add to right now, despite the 2.5% dividend yield on offer.

Finally, Pacific Horizon has benefitted from top holdings Taiwan Semiconductor (TSMC) and Samsung Electronics. These chipmakers have exploded higher due to their central role in the global AI infrastructure buildout.

A slump in these names is a risk to performance, though with Pacific Horizon trading at a 9.3% discount to NAV, it’s worth a closer look.

The sixth trust

Speaking of AI, I’m considering buying shares in Manchester & London Investment Trust. This one has gone all-in on AI hardware, with a portfolio packed full of chipmakers (Nvidia, AMD and Micron), semiconductor equipment stocks, energy providers, and data centre cooling firms.

Of course, there’s high sector concentration risk here, with Nvidia making up almost 25% of the portfolio itself. However, the trust has generated a 17% annualised return (with dividends reinvested) since 2015, and is offering a 3.7% dividend yield.

Better still, it’s trading at a 18.7% discount to NAV. It therefore offers a discounted way to get broad exposure to the AI buildout, which could reach a cumulative $7trn by 2030.

The post 3 investment trusts on fire across my SIPP and Stock and Shares ISA appeared first on The Twelfth Magpie.