Why Macquarie Group Ltd (ASX:MQG) is betting $9 billion on this global trend

Macquarie Group Ltd (ASX: MQG) has never been an entity to shy away from investing in profitable global trends.

Australia’s most successful bank has forged a reputation in the market for making bets so successful, the ASX listed company has been called “the millionaires’ factory”.

That’s why when this company invests $9.5 billion on one niche sector in FY 2018 alone, I take notice.

In FY 2018, Macquarie invested $9.5 billion in a sector so essential that Tesla Inc (NASDAQ: TSLA) founder and billionaire Elon Musk has described it as addressing, “the biggest problem we need solve on earth this century”.

This sector is the renewable energy and the clean technology industry.

Year Number of years Macquarie Investments in renewable energy
FY 2010 – FY 2017 8 years $15 Billion
FY 2018 1 year $9.5 Billion

As the table above illustrates, Macquarie’s investment in this industry has increased significantly in 2018 when compared to the average of the previous 8 years. Investments made include wind farms in the UK and solar projects in India.

Whilst there may still be a while to go before renewable energy becomes the main source of energy that is used, it’s this forward thinking vision and exposure to such exciting industries that sets Macquarie apart from other financial services businesses on the ASX.

I would certainly prefer to own Macquarie shares compared to the big banks Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), Australia and New Zealand Banking Group (ASX: ANZ) and National Australia Bank Ltd. (ASX: NAB).

For more direct exposure to renewable energy, AGL Energy Ltd (ASX: AGL) is also worth looking into. AGL is looking to rely more on renewable energy sources and less on coal powered power stations such as Liddell.

If you are interested in learning more about emerging industries such as clean technologies then you will not want to miss this exciting report prepared by our team of experts on what could be a trillion dollar technology.

The Rocket Fuel of the AI Boom

One of the world’s richest people is sounding the alarm on what could be a trillion-dollar technology.

Everyone is talking about the artificial intelligence revolution.

Harvard Business Review calls it, “the most important general-purpose technology of our era.”

One Google Insider predicts AI, “will be as transformative as the discovery of electricity.” And it already is transforming industry after industry.

After all we have been hearing about AI for years…but it never really lived up to the hype…so what’s finally unlocked this huge tidal wave of innovation?

Click here to learn more!

Kevin Gandiya has no position in any of the stocks mentioned.

You can follow Kevin on Twitter @KevinGandiya.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Tesla. The Motley Fool Australia owns shares of National Australia Bank Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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