The Scottish Mortgage (LSE: SMT) share price is down 45% in 2022. I’ve been a keen advocate of the investment trust in the past. And, despite the fall, I remain one. Here’s why I’d buy Scottish Mortgage today as a long-term addition to my portfolio.

Scottish Mortgage share price history

In a year where many stocks suffered, Scottish Mortgage bucked the trend in 2020 with returns of over 100%. This impressive growth slowed last year, with the stock rising just under 5%. And since the turn of 2022, the trust’s share price has slowly fallen.

The most important reason for the trust’s fall is due to the performance of its top holdings. This includes Moderna, Tencent, and Amazon. And with these stocks down 46%, 16%, and 38% this year, respectively, it’s clear to see why Scottish Mortgage has suffered.

It also has a focus on growth stocks. As global inflation continues to rise, this is having an impact on these firms. This is because interest rates are raised to counteract inflation. And, therefore, the debt these firms have to fund their growth becomes more difficult to pay off. To make matters worse, growth stocks tend to be hit the hardest during these times as investors move their money to ‘safer’ value stocks. For Scottish Mortgage, this is clearly bad news.

Why I’m still buying

Despite these issues, I would still buy the stock today.

Essentially, one of my main attractions to Scottish Mortgage is the diversity it offers my portfolio. The trust invests in a range of companies. And this diversification offsets risk and exposes me to opportunities that I couldn’t attain using my own funds. Scottish Mortgage can also allow me to gain access to unlisted shares, such as SpaceX. Add this to its cheap ongoing charges of 0.34%, and I’m only further attracted to the trust.

I also think the above are short-term concerns. The trust’s management highlight how Scottish Mortgage focuses on returns over a five-year period. And the trust uses the FTSE All-World Index as a benchmark. Over the last five years, it has returned 67% to its loyal shareholders. While past performance is not an indication of future returns, the trust has also navigated some challenging crises over time. An example is the dotcom crash of 2000, and its resilience and ability to bounce back from crises like these is why I like Scottish Mortgage.

Yet, there are risks surrounding Scottish Mortgage. One of these is the large weighting it has in China. This makes it vulnerable to the potential issues surrounding the country and Covid threats. The possibility of future lockdowns could hurt the stock’s price.

That said, the trust has a track record of investing early in high-growth companies. This has played a key role in its success, with an example being buying Tesla back in 2013 when the firm was trading for just $6 a share.

As such, I’d buy the trust today. As a long-term investor, the above issues do not concern me. And Scottish Mortgage’s diversification and proven resilience lead me to believe this fall in price is a great opportunity. With management’s ability to find high-potential growth stocks, I also think investing now could see me make some healthy returns in the long run.

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Charlie Keough has no position in any of the shares mentioned. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK has recommended Amazon and Tesla. 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.

So, why is it on a downward trajectory? And does this fall represent an opportunity for me to grab some cheap shares? Let’s take a look.

Why is the share price down?

So, why after such a strong performance, during a difficult few years, is the Scottish Mortgage share price now falling?

Firstly, the trust is renowned for its large weighting to growth stocks. Examples of these include Tesla, which SMT invested in back in 2013 when the shares were changing hands for around $6. And smart investments like these have been a big part to the large success seen by the fund. However, with global inflation on the rise, this trend tends to see investors switching their money to ‘safer’ value stocks. As a result, the share price has fallen.

Another reason for the fall is Scottish Mortgage’s tech-heavy focus. As of 31 March, its top holdings included Tesla, Nvidia, and Amazon. While these stocks have performed well in the past, 2022 has seen them suffer. The stocks are down 17%, 35%, and 16% year-to-date, respectively, so it’s no surprise that the Scottish Mortgage share price has followed suit.

Wider outlook

With this said, I think these are short-term concerns.

Management makes it clear that the trust has the “aim of maximising its total return to its shareholders over the long term” – and it uses the FTSE All-World Index as a five-year benchmark. While of course, past performance doesn’t represent future returns, in the last five years SMT has returned nearly 140% to patient shareholders. And on top of this, it survived multiple challenges over the years, such as the dotcom crash of 2000, highlighting its resilience.

There’s a case, however, to argue that the Scottish Mortgage share price may continue to fall. To start, its top holding Moderna (7.1%) is forecast to see profits fall from $12bn in 2021 to $2bn by 2024. And while Tesla has been enjoying big growth, its price-to-earnings ratio would suggest it’s seriously overvalued. A correction to this could see the Scottish Mortgage share price come tumbling down.

Despite this, the trust is in the safe hands of Tom Slater and soon-to-retire James Anderson, who have been at the helm for a long period, playing a key part in its success. I have confidence that their eagle-eyed investment style will allow the trust to continue to thrive in the future.

What I’m doing

So, regardless of short-term concerns, I think the falling Scottish Mortgage share price presents a great opportunity. The trust has proved it can survive difficult periods in the future. And despite its dip, I have faith in the management team to guide it. As such, I would buy the shares today.

The post The Scottish Mortgage share price continues to fall! Here’s what I’m doing appeared first on The Motley Fool UK.

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Charlie Keough has no position in any of the shares mentioned. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK has recommended Amazon and Tesla. 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.

So, after a dent in its previous impressive form, does this recent fall present me with an opportunity for me to buy? Or should I be steering clear of adding SMT to my portfolio? Let’s take a look.

SMT share price fall

Let’s begin by looking at why the trust’s share price has taken such a hit recently. One factor it can be attributed to is rising interest rates. As my colleague Andrew Mackie highlighted, interest rates have slowly begun to creep up again after they were slashed near zero during the pandemic. And this, along with soaring inflation, has had a direct impact on SMT due to its heavy exposure to unlisted and growth stocks.

As these companies tend to be indebted in order to fuel growth, rising interest rates mean these debts will become more difficult to handle. As such, in times like these investors tend to put their money into value stocks. 

A further reason for the fall is SMT’s tech-heavy weighting. With its top 10 holdings including ASML, Nvidia, and NIO, this means that when tech companies are doing well (as they were), the Scottish Mortgage share price rises. However, the recent tech sell-off means that these stocks have tumbled in price, reflected in the drop off the SMT share price, highlighting the negative connotations that can exist with its large exposure to the sector.

Long-term outlook

However, there are factors that excite me when looking at SMT. One reason I would consider adding SMT to my portfolio is its long-term outlook. The fund managers aim to beat the FTSE All-World Index over a five-year rolling period, and its history clearly shows that SMT can do so. For comparison, the Scottish Mortgage share price is up over 220% in the last five years, while the FTSE 100 has managed just 5%. Given this, the current dip could just be short-term volatility, therefore presenting me with a good opportunity to buy some shares at a reduced price.

Further, while many of SMT’s big holdings are tech stocks, the trust does allow me to enjoy exposure to an array of sectors within a single investment. For example, another one of its top holdings (8.1%) is pharmaceutical stock Moderna, best-known for its Covid-19 vaccine. 

It also provides further diversification through its global investment strategy, an example being its weighting in China. And for me, this is an attractive factor.

Should I buy?

So will I buy? Well, this depends. If I was considering adding SMT to my portfolio for a shorter timeframe than five years – then no. However, as a long-term investor, I think SMT at its current price could be a solid addition to my portfolio. The trust has a proven track record, and the manager’s long-term outlook is one that clearly bears fruit. Even though SMT is experiencing a volatile period, I would look to add some shares to my portfolio today.

The post The Scottish Mortgage share price is down 14%. Should I buy? appeared first on The Motley Fool UK.

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Charlie Keough has no position in any of the shares mentioned. The Motley Fool UK has recommended ASML Holding. 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.

Why has SMT fallen?

As I type, the share price of the FTSE 100-listed fund has tumbled almost 13% since 2022 started. It’s not hard to see why. Concerns over earlier-than-expected hikes to interest rates in the US have pushed investors to dump frothy growth stocks in favour of more reasonably-valued companies.

Unfortunately, SMT’s portfolio is chock-full of the former. Shares in pharma giant Moderna, semi-conductor supplier ASML and electric vehicle poster boy Tesla are down 29%, 11% and 17% respectively.

There’s a possibility things could get worse before they get better as we enter the end game of the pandemic. Airlines, hotels and holiday firms will be back in demand. That’s regardless of whether they’re fundamentally good businesses or not. Rising interest rates will do the same for banking shares. 

Another reason why some investors may be cautious about SMT’s outlook is that James Anderson’s departure date (30 April) is approaching. Having done so well for holders during his tenure, the loss of SMT’s co-manager is bound to make some jittery. 

Staying bullish

For me, the question as to whether Scottish Mortgage Investment Trust is a good investment now depends less on the fund itself and more on the investor considering it.

The fact is, SMT’s managers have already proven themselves to be canny stock-pickers. At the time of writing, the FTSE 100 member’s share price is up 228% in the last five years. Contrast this with the 13% return generated by its index (excluding dividends).

I think that more than justifies the former’s 0.34% ongoing charge. It’s also worth highlighting that co-manager Tom Slater is staying on after Anderson leaves. 

Yes, past performance is no indication of future performance. But nor should it be ignored. If I believe that tapping into disruptive companies as early as possible can lead to stellar returns (hint: I do), then continuing to throw my money at Baillie Gifford’s highly-successful flagship fund still makes sense. This is especially as it gives me access to private businesses I’d otherwise struggle to own. 

No, the question I’ve been asking over the past few weeks is whether buying now makes sense given my investing horizon. Since I believe (hope) the latter consists of several decades rather than a few months, I’ve come to the conclusion that it does.

That’s it. No fancy calculations. No dwelling on paying a premium or discount to the net asset value. No obsessing over inflation. Reckless? I actually think this strategy is pretty rational, although I would say that! 

Long term buy-and-hold

I fully intend to keep investing in SMT. That’s even if the share price continues to be volatile. Things get a lot less stressful when I remember that what happens in 2022 really doesn’t matter. Traders may feel differently, of course. 

Sure, it’s wise to remain appropriately diversified. However, I’m more confident that my holding will generate better returns than cheaper (poorer) constituents of the FTSE 100 over the long term. The same goes for this recently-battered but high-quality FTSE 250 stock.

Value is back in fashion, but fashion is notoriously fickle.

The post Scottish Mortgage Investment Trust: here’s why I’ve been buying more appeared first on The Motley Fool UK.

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Paul Summers owns shares in Scottish Mortgage Investment Trust. 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.

Massive loss

To be frank, today’s numbers are redundant beyond serving as a reminder of just how bad things have been for the budget airline. Unfortunately, the Covid-19 pandemic is just so fast-moving that there’s scant guidance for investors like me as to whether the shares might be a buy now.

As one might expect, easyJet was keen to emphasise what it had done to mitigate the damage wrought by Covid-19. This included reallocating aircraft to “higher contributing bases” and instigating cost savings where it could. Even so, total revenue more than halved to £1.46bn over the 12 months to the end of September. The only slight consolation here is that the £3bn of revenue seen in the previous year was boosted by a first-half being unaffected by the pandemic. So, a significant reduction was always on the cards.

Naturally, easyJet’s bottom line wasn’t in great shape either. A headline pre-tax loss of almost £1.14bn was worse than the £835m loss endured last year. That’s despite a 33% reduction in costs. Notwithstanding this, it was ahead of consensus expectations. This may be one reason why the easyJet share price hasn’t dropped like a stone today. Another is the (fairly) upbeat tone with regard to the outlook for FY22.

Recovering demand

This morning, CEO Johan Lundgren said that the steps taken by the company over the past year, coupled with a strong balance sheet “provide easyJet with renewed strength to manage any further Covid-related travel disruptions”. He went on to say that the budget airline had witnessed “an encouraging start” to the new financial year. Demand for flights over the peak winter holiday period was recovering with capacity predicted to be around 70% of 2019 levels in Q2. The Luton-based business expects this to be “close to FY’19 levels” by next summer.

As encouraging as all this sounds, there’s no shortage of reasons for me to be cautious. As the company itself reflected today, it’s far too soon for anyone to know just how much of an impact the new Omicron variant will have on travel. Only this morning, Moderna CEO Stephane Bancel suggested that current vaccines would not be a match for the new variant and that it would take months to get one ready that is.

Put simply, easyJet can do everything right and still struggle. This helps explain why the share price has tumbled 27% over the last 12 months. It’s also why I suspect that asking for it to recover before the end of 2021 may be asking too much. 

easyJet share price: too much risk?

I don’t doubt that demand for easyJet stock will fly at some point as the economy rebounds and demand for holidays inevitably rockets. The question is whether it’s worth the not-insignificant amount of hand-wringing that’s likely to precede it.  

For my part, I’m staying on the sidelines. Taking a contrarian stance now might result in great returns in time, but I think there are far less nerve-wracking ways of making money in the markets.

The post Can the easyJet (EZJ) share price end 2021 on a high? appeared first on The Motley Fool UK.

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Paul Summers 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.

After an incredible rally in 2020, the Scottish Mortgage Investment Trust (FTSE: SMT) has continued its fine form into this year. Since I last wrote on SMT back in August, the FTSE 100 stock has risen over 10%.

The stock is up over 20% year-to-date – and with it currently trading at 1,515p, here’s why I’d buy the Baillie Gifford fund for 2022.

SMT’S diverse portfolio

What I most like about SMT is its diverse portfolio. Most importantly, it provides me exposure to an array of sectors and opportunities. As an example,  its recent surge is partly linked with Tesla, which makes up 6.3% of SMT’s assets. The recent rise of the Tesla share price past the $1,000 mark contributed to a rise in SMT’s share price. SMT’s top holdings, as of 31 October, also included biotech firm Moderna (7.8%), ASML (5.6%), and NIO (2.9%). This further shows the exposure to exciting companies I can gain from a single investment in this trust.

Another reason I deem the FTSE 100 stock a buy for 2022 is its focus on China. Although some firms have suffered recently due to stricter regulations from the Chinese government, it is clear China has major long-term potential. SMT’s large focus on the world’s fastest-growing economy is an enticing reason for me to buy. The short-term volatility this may provide does not distract me from the long-term gains that could potentially be made.

SMT concerns

I do, however, have a few concerns with the trust. First, continuing supply chain issues could pose a threat to SMT. With both Tesla and NIO among its top holdings, should these issues persist I’d expect this to translate into a drop in the price of the trust’s stock. It’s heavy focus on tech stocks could also provide periods of volatility, as seen back in February when the share price dipped 30% due to the tech sell-off.

Also, the trust has been on an incredible run over the past few years, which leads me to question just how long this momentum can continue. With the threat of rising inflation, could this be the factor that halts SMT’s impressive form?

However, I have faith in SMT is due to its impressive track record. The FTSE 100 stock is up over 40% during the past 12 months and over 350% within the previous five years. For perspective, the FTSE 100 has only climbed 14% and 6% over the same periods. The trust’s cheap ongoing charges of 0.34% are another enticing factor for me given its long-term performance.

Why I’d buy

I think SMT has great potential for 2022 and beyond. There are of course short-term issues that could lead to volatile periods, but the trust’s long-term performance shows that it can deliver solid returns as part of its longer-term investment strategy. A potential dip in the share price, if problems such as supply chain issues and rising Covid-19 cases persist into the rest of 2021, could present an opportunity for me to add SMT to my portfolio. The long-term focus the trust has in place outweighs these momentary concerns – and, as such, I would buy.

The post Why I’d buy this FTSE 100 stock for 2022 appeared first on The Motley Fool UK.

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Charlie Keough has no position in any of the shares mentioned. The Motley Fool UK has recommended ASML Holding. 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.

Should I consider adding to my position? Let’s start by looking at just why the tech-focused fund is flying.

Why is SMT hot?

One reason is its exposure to electric vehicle maker Tesla. Shares in the latter rose above the $1,000 per share boundary yesterday, following the announcement of a deal with rental car firm Hertz. This gives Elon Musk’s company a market capitalisation of over $1tn.

To its credit, SMT has been a holder of TSLA for some time. Taking up a little less than 5% of assets, it still ranks fourth in its list of top 10 positions held today, hence the uplift in the Trust’s valuation.

But it’s not just down to TSLA. Shares in biotech giant Moderna have also been rocketing, following the approval of its booster vaccine for Covid-19. All told, the company’s valuation has climbed 400% in just the last 12 months. It’s also SMT’s largest position, making up just under 10% of the portfolio.

Time to buy more?

There are a few reasons why I’m invested in SMT. Aside from the fact that markets can continue rising regardless of fundamentals, the Baillie Gifford fund gives me access to a group of highly disruptive companies, some of which remain private. As a growth-focused investor, albeit one who won’t turn down a dividend if it’s offered, SMT is a great fit for my overall strategy.

The stock-picking skills of (soon-to-depart) James Anderson and Tom Slater can’t really be questioned either. After all, Scottish Mortgage Investment Trust’s share price has climbed 335% in just five years. In just the last 12 months, it’s up by 46%. By contrast, the FTSE 100 index is 4% and 25% higher respectively. Although not the best comparison, I don’t think any investor will complain too much about paying the (actually very low) 0.34% ongoing charge for this kind of outperformance.

Reasons to hold off

Despite the above, I can’t help but feel somewhat jittery about SMT setting another record high. The trouble is that momentum can’t be sustained indefinitely. In fact, the higher the share price goes, the greater the fall might conceivably be when markets inevitably swoon.

It’s not hard to find potential catalysts. Rising inflation is impacting businesses and supply chains remain disrupted. Covid-19 infections are also showing signs of rebounding. On top of this, valuations continue to look frothy across the pond (the S&P 500 recently set another record high).

Ominously, the Schiller P/E — a valuation metric that takes into account earnings over the last 10 years rather than just one — hasn’t been this high since the dot-com boom.

My verdict

As a Foolish investor focused on growing my capital over decades rather than a year or two, there may be little value in watching the current SMT share price. I’m inclined to agree, at least to a point. Timing the market consistently is very hard, if not impossible.

That said, the multiple headwinds faced by investors right now lead me to suspect that only small additions to my SMT position make sense right now. As far as the risk/reward trade-off is concerned, I believe the odds are less in my favour with each passing day.

The post The Scottish Mortgage Investment Trust (SMT) share price is flying! Time to buy? appeared first on The Motley Fool UK.

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Paul Summers owns shares in Scottish Mortgage Investment Trust. The Motley Fool UK owns shares of and has recommended Tesla. The Motley Fool UK has recommended Moderna Inc. 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.

Could we get past 7,000 next month? History suggests it’s not out of the question. 

FTSE 100: Santa rally ahead?

December has earned itself a reputation for being the strongest month of the year for UK share prices. In fact, research by Stephen Eckett (and published in Harriman’s Stock Market Almanac) has shown that the FTSE 100 index has fallen just three times in the month since 1995. It even has a habit of outperforming the US S&P500!

Interestingly, there doesn’t appear to be one clear reason for this. What we do know however, is that the final two weeks of December tend to be particularly strong.

Known as the ‘Santa Rally’, here’s why I think this may happen again in 2020.

Why 7,000 might be broken

It seems logical that further good news on coronavirus vaccines could push the FTSE 100 higher. Having received positive results from Pfizer, Moderna and AstraZeneca in the past few weeks, it’s now the job of the Medicines and Healthcare products Regulatory Agency (MHRA) to give its approval. Expect fireworks if we get this in December.

The psychological effect of emerging from lockdown restrictions shouldn’t be underestimated either. While many UK businesses will continue to struggle, the mere belief that things are improving could send share prices higher on its own. Remember — the market is more interested in what will happen next, not what’s happening now.

Despite recent gains, UK shares also remain cheap relative to elsewhere in the world. News of a Brexit trade deal would undoubtedly go some way to addressing this. Further monetary stimulus in the US would be another boost.

On the other hand…

Of course, there’s also no shortage of reasons for why the FTSE 100 will fail to break through the 7,000 barrier.

Aside from the possibility of unexpected hurdles for the aforementioned vaccines, there are fears that coronavirus infection rates could rise as a result of families being allowed to meet over Christmas. This ‘two steps forward, one step back’ state of affairs could slow momentum.

With chancellor Rishi Sunak warning that the full economic impact of the pandemic has only just begun, many in the UK may also be inclined to keep their purse strings tightened until 2021. That’s problematic when you consider how dependent most of the UK’s listed retailers — and their share prices — are on the festive period for sales.

In addition to all this, many traders may begin to bank whatever profits they’ve managed to make in 2020. 

Don’t time the market

It is, of course, impossible to say for sure where the FTSE 100 will be at the end of next month. As such, my investment strategy remains the same. Like top UK fund manager Terry Smith, I’m looking for top-quality companies trading on reasonable valuations that I can hold for years. 

After a rollercoaster 2020, a soaring FTSE 100 would be a nice Christmas present for UK investors. Just don’t bank on it. 

The post Here’s why I think the FTSE 100 could smash through 7,000 in December appeared first on The Motley Fool UK.

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Likewise, its 9% stake in Moderna is also helping its prospects. The US therapeutic company has been blitzing US news channels with self-described positive progress on its own Covid-19 vaccine trials. 

But markets are fickle beasts and the FTSE 100 slumped 0.3% on opening on Wednesday as doubts were raised about Moderna’s Covid-19 vaccine trial data. Moreover, AstraZeneca’s share price slipped 1.2% over the same time period.

The slippage implies that some investors are getting nervous about a potential Covid-19 vaccine trial failure. But trial failures are part-and-parcel of owning a pharmaceutical firm. With this in mind, are AstraZeneca’s future growth prospects enough to justify a current share price of 8,723p?

Strong developing pipeline

One of the better ways of evaluating a pharmaceutical company is by analysing its ability to get drugs to market. This includes looking at the firm’s pipeline. In other words, how many drugs it has in research and development (R&D) and in all the other stages they go through before they reach the market.

AstraZeneca has a highly innovative pipeline covering a wide variety of diseases from oncology to neuroscience. It boasts nine globally renowned patent-protected drugs, illustrating its well-honed ability to bring its products to market.

Over the last 10 days, AstraZeneca has added to its market-leading position. Oncology drug Lynparza is now approved in the US for prostate cancer and Enhertu is designated a breakthrough therapy for certain types of lung cancer. In addition, the Chinese have approved Bevespi Aerosphere for patients with chronic lung disease.

The provision of these drugs will likely offset previous losses experienced with other drugs, such as Nexium, and the market is expecting the FTSE 100 stalwart to profit accordingly. Consequently, the AstraZeneca share price is skyrocketing, after significantly outperforming the FTSE 100 over the last five years.     

AstraZeneca share price is risky 

However, with this good news already factored into the AstraZeneca share price, the firm’s earnings need to follow. Currently, selling at a price-to-earnings (P/E) ratio of 90, investors appear to be speculating that they will do so.

But, big pharma trials take considerable time and are expensive; a vaccine for Covid-19 is still a remote prospect that could lower earnings in the meantime. Of note, AstraZeneca has reported negative earnings for the last three years and a high P/E is a huge gamble on turning that around.

Another problem with a high share price is a low dividend yield. At 2.5%, AstraZeneca’s dividend yield is far less attractive than it was a short time ago, lowering an investor’s total return considerably. Buying the stock in March at 6,221p gave you a return of about 3.5%. This 1% difference, compounded over time, will mean much less return and far more risk for your money.  

If you bought AstraZeneca shares after they plummeted in March, well done. You’ve bought into a great company at a good price. If not, I think it’s currently too expensive and too risky to do so now. The FTSE 100 is unpredictable and if you want to beat it, you need to maximise your returns. Right now, AstraZeneca is unlikely to do that for you.

The post The AstraZeneca share price is up 39% in a month! Should I buy now? appeared first on The Motley Fool UK.

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Rachael FitzGerald-Finch 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.