The Motley Fool

Should I buy Scottish Mortgage Investment Trust at the current price?

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Hand arranging wood block stacking as step stair on paper pink background
Image source: Getty Images

It’s been an eventful 2021 so far for Scottish Mortgage Investment Trust (LSE: SMT). The fund manager of the multi-billion portfolio, James Anderson, has announced his retirement. This follows the sell-off of many tech and growth stocks earlier in the year, due to fears of higher inflation and interest rates.

I’ve mentioned before that I think the real gem is Scottish Mortgage Investment Trust’s unquoted portfolio. There’s a significant amount that is invested in private companies. In fact, as at the end of February, approximately 17% of the trust is held in unquoted holdings. Some of these have gone onto float on the stock markets through an initial public offering (IPO). And I don’t think this is by fluke. 

5 Stocks For Trying To Build Wealth After 50

Markets around the world are reeling from the coronavirus pandemic… and with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.

But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be a daunting prospect during such unprecedented times.

Fortunately, The Motley Fool UK analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global upheaval…

We’re sharing the names in a special FREE investing report that you can download today. And if you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio.

Click here to claim your free copy now!

I’m still bullish on the trust and would buy it in my portfolio. But what really caught my eye is the fact that the it has dipped its toe into the world of cryptocurrency. Here’s my take on this investment.

The recent addition

It has been revealed that Scottish Mortgage has invested $100m (£72m) into This is the UK’s biggest cryptocurrency firm. And the amount is the single largest investment in the company to date.

The $100m was part of a $300m funding round, which values at $5.2bn. It also means that Baillie Gifford, the asset manager behind the trust, is the largest external shareholder in the London-based firm.

In terms of the size of the unquoted holding in the portfolio, it’s insignificant. Scottish Mortgage Investment Trust’s current assets are worth approximately £18bn. This investment would mean that it represents 0.4% of the overall trust portfolio. It’s safe to say that it’s a very tiny amount.

So what does do? It’s a platform where retail and institutional investors can buy, sell, and store various cryptocurrencies.

I think it’s a timely investment for Scottish Mortgage as Coinbase recently made its US stock market debut., like Coinbase, is making cryptocurrency widely available.

So what does this mean?

This is the trust’s first significant investment in the digital asset. I think is also continues to highlight that cryptocurrency is going mainstream and is becoming more widely accepted.

I’m not surprised by this holding. The fund managers of the Scottish Mortgage Investment Trust are not afraid to make bold moves. I think it has served them well. In fact, the long-term performance of the portfolio will verify that. To be frank, I’m amazed they had not made a cryptocurrency investment earlier.


While the long-term track record of the Scottish Mortgage Investment Trust is impressive, the stock does come with risks. There is no guarantee this stellar performance will continue. In fact, the tech sell-off highlights how the shares can be impacted.

Also unquoted holdings can be risky. A lot can can go wrong and institutional investors such as the trust can see their holdings fall significantly.

But what I like about Scottish Mortgage is that the private company portfolio is very diversified across a number of firms. This is why I’d buy the trust at the current price in my portfolio.

Is this little-known company the next ‘Monster’ IPO?

Right now, this ‘screaming BUY’ stock is trading at a steep discount from its IPO price, but it looks like the sky is the limit in the years ahead.

Because this North American company is the clear leader in its field which is estimated to be worth US$261 BILLION by 2025.

The Motley Fool UK analyst team has just published a comprehensive report that shows you exactly why we believe it has so much upside potential.

But I warn you, you’ll need to act quickly, given how fast this ‘Monster IPO’ is already moving.

Click here to see how you can get a copy of this report for yourself today

Nadia Yaqub has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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.

Our 6 'Best Buys Now' Shares

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.

Simply click below to discover how you can take advantage of this.