About Scottish Mortgage Investment Trust

July 11. 2020. 6 mins read

Never have global equities been more accessible to retail investors than today. There’s more to the world of investing than the Nasdaq or the Silicon Valley Vatican. We frequently cover international stocks because there are some gems to be found out there flying under the radar. (For example, three of the five machine vision stocks found in our Guide to Investing in Computer Vision are German stocks.) Today, we’re going to talk about a very interesting investment trust brought to our attention by one of our U.K. subscribers – Scottish Mortgage Investment Trust (SMIT).

What’s in a Name

Names can be misleading. While the name Scottish Mortgage Investment Trust may conjure up images of a U.K. realty company in Canary Wharf, that couldn’t be further from the truth. In short, SMIT is an actively managed portfolio of public and privately held growth companies. The term “actively managed” means that they hold a concentrated portfolio of companies which they believe will outperform the broader market, something they’ve been doing since 1909.

Regular readers know our thoughts on active management. When 95% of finance professionals cannot beat the market, what exactly is their purpose? Why should you pay more fees for an actively managed portfolio in exchange for less returns? The first thing to note about SMIT is that you’re not paying more

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