SIPP long term runners

[Peter1B1]

It's annual SIPP time with portfolio now seven years old and gaining experience and traction. I've marked each IT crudely as S:table and boring, M:oderate but unimpressive and P:erformer. Pleasingly, nearly 60% fits in the later category. I will sell down some of the S and use with this year's £3,600 and accumulated dividends to top up on the Ps. They are:

Scottish Mortgage
JPMorgan American
Jupiter European Opportunities
Polar Capital Technology
Finsbury G&I (recently started)
Fundsmith equity Class 1 (recently started)

I'm not adding to Lindsell Train IT (a stonking P), as it has organically become the largest single holding. I'm selling down but not out on Ruffer and Capital Gearing Trust.

I see the Ps as proven long term performers and am happy to stick with them rather than clutter up the pf with an ever increasing number of possible trusts. This, though, excludes the rest of the investment universe and I am of course missing out on other serious long term growth contenders.

So, apart from sharing my approach, I'm interested in other Lemon Fools' rave long term growth pedigree ITs please. I will welcome comment!

Thank you, Peter1B1

[Parky]

Bearing in mind the considerable political instability in the UK and other places, which I believe will eventually spook stock markets, I am doing the exact opposite to you and reducing investment in my "good performers", and buying more of stocks like Capital Gearing, Ruffer and Personal assets, which are less exposed to stock markets.

[BarrenWuffett]

I have held Finsbury and SMT for several years and v happy with returns but like the previous poster, I have top sliced both in past month and recycled the proceeds into the more defensive CGT. There will be no 7 day warning when the markets head south so I feel it is prudent to lock in some of the gains.

[Peter1B1]

Parky, BarrenW,

Thank you for your contrasting and respected perspective. I have discussed with the SIPPees who are in their mid-late 20s. Given that it will be 30 years or so before the SIPPs are deployed to provide an income in retirement, we take the view that time will assuage risk on what are already highly diversified exposures.

There will be serious falls in value along the way but growth is growth: preservation of capital is important but the driving objective is sensible compound growth and we should take those opportunities ahead of conservation - which may come much later.

UK political outlook is dire but many end-investments span global economies and non-GBP so, again, I feel that the longer term view is warranted. For SIPPs in payment, a very different approach may well be appropriate depending on the required yield and duration.

Thanks again, Peter1B1

[ADrunkenMarcus]

Scottish Mortgage
JPMorgan American
Jupiter European Opportunities
Polar Capital Technology
Finsbury G&I (recently started)
Fundsmith equity Class 1 (recently started)

Peter1B1,

I very much like Scottish Mortgage, Fundsmith and Finsbury G&I: I just wish Fundsmith was a closed-ended fund and not an open-ended one, but it hasn't hurt it so far.

As someone similar in age to those you spoke to, someone in their mid 20s could potentially have over fifty years of compounding ahead of them where even a single half percent increase in the compound annual growth rate could make a substantial difference over time.

One angle I would recommend is smaller companies: I hold Aberdeen Asian Smaller Companies and Standard Life UK Smaller Companies (both ITs). The latter has compounded at over 15% for me since 2011. My own SIPP has a huge proportion in smaller companies: about 78% in fact. I also think it right to be looking very much at global exposure as you are (either directly listed or companies with global revenues): the USA proportion of world stock market capitalisation changed enormously between 1900 and 2016. I think we'll see, by 2050,a marked shift towards Asia and the emerging economies.

Best wishes

Mark.