Are Scottish Mortgage shares no-brainer growth buys now?

What would you do if someone gave you a pound coin for every 83p? Assuming they are genuine, I will buy as many as I can. And something like that Scottish Mortgage Investment Trust (LSE: SMT) shares today.

I mean the trust trades at a discount of 17% of net asset value. So if I were to buy Scottish Mortgage shares now, the ownership it represents would be worth more than what I paid for it.

And that possession must not be forfeited.

Tesla is cheap

Is Tesla stocks are cheap after falling more than 50% from their 2021 peak? I think. I can not be alone in regretting the missed growth opportunities in the past. Right now, you can get an extra 17% discount by buying Scottish Mortgage shares.

I think Nasdaq it has been a bit too hot, and there is a correction. But looking at the size of the crash in US growth stocks, I think prices may be falling at the right level.

Before I continue, I must make a note of caution. There are common mistakes that can easily be made when seeing the price of a growth stock decline.

the blade fell

We see it selling a lot cheaper than it used to, and we pile on it. Then what happened? Yes, it keeps going down. Easy to cut trying to catch a falling knife.

How to get rid of that pain? For me, the answer is to forget the size of the fall. Ignore any chart patterns we see. Don’t think about what will happen tomorrow, or next week…

No, it’s all about how the stock looks now, compared to how we rate its long-term potential. If I win there, I would like to be able to buy and then totally switch off from the price chart shows.

So is Tesla a buy now, with revenue forecast to double by 2025? For my money, yes.

Chips

A semiconductor technology company ASML Holdings also held by Scottish Mortgage. By 2021, the stock is trading at a price-to-earnings ratio (P/E) of nearly 50. Now, due to forecast earnings growth coupled with falling prices, we’re looking at a halving in 2024.

Oh, I almost forgot. It is 17% cheaper than for Scottish Mortgage investors.

Some, of course, may be a bit high. Modern, for example, is up more than 600% since 2019, despite this recent fall. And without a profit forecast, it is difficult to evaluate.

Growth investment

But there are risks involved if we invest in growth stocks. There is more uncertainty, and it is usually harder to work out the apparent value. That’s why I think the diversification held in investment trusts is a good way.

So, would I rate Scottish Mortgage Investment Trust as a no-brainer? Well, not in this growth investment, really.

But I don’t see anything that I think is approaching now. Especially at the 17% off sale price.