James Anderson is the fund manager of the Scottish Mortgage Investment Trust.

He is a seriously bright guy and a talented successful fund manager (not always one and the same).

The Badger cedes the floor to his conclusion to the Scottish Mortgage 2012 Fund Review.

“Although it has been a frustrating year we find more to be excited about than to fear. Innovation combined with globalization has enabled the rise of a series of companies with historically unparalleled returns and growth opportunities. We think that this process is far from complete. We think that it is underestimated and misunderstood by markets. Whilst we hope we are aware of the dangers of overconfidence, we are also convinced that impatience and fear have all too often exerted too great an influence on markets. At times over the last year, most notably in late 2011, it has seemed to us that the flight to presumed safety has been as exaggerated as the rush towards technology stocks in 1999–2000. Market distortions can just as easily result in undue depression as in overvaluation. Indeed given the difficult recent experience of market participants, this currently seems more probable than an outburst of excessive optimism. Pessimism is very popular. We do not share it.” – James Anderson May 2012

The full report is on the website, click here to read the report


NOTE: This is written in a personal capacity and reflects the view of the author. It does not necessarily reflect the view of LWM Consultants. The post has been checked and approved to ensure that it is both accurate and not misleading. However, this is a blog and the reader should accept that by its very nature many of the points are subjective and opinions of the author. This is not a recommendation to buy any product or service including any share or fund mentioned. Individuals wishing to buy any product or service as a result of this blog must seek advice or carry out their own research before making any decision, the author will not be held liable for decisions made as a result of this blog (particularly where no advice has been sought). Investors should also note that past performance is not a guide to future performance and investments can fall as well as rise.