One of Australia's best fund managers, Hamish Douglass, has revealed where he and his investment firm Magellan Financial Group Ltd (ASX: MFG) will be investing in the 2020s.
Not only has Mr Douglass become rich himself from his Magellan business and investing returns (he's now a billionaire), but he has made investors in Magellan's funds wealthy too. The unlisted Magellan Global Fund has returned an average of 18.4% per annum after fees over the past seven years.
Talking to the Australian Financial Review, he thinks that cloud computing is going to be the best place to be invested over the next decade which could turn into a multi-trillion dollar industry.
Three of the biggest players in this space in the western world are Alphabet, Amazon and Microsoft, which is why Alphabet and Microsoft are two of Magellan's biggest investments. Magellan doesn't own Amazon shares.
On the ASX we can perhaps get direct exposure to cloud computing with shares like Megaport Ltd (ASX: MP1) and Nextdc Ltd (ASX: NXT).
Another business that he mentioned that Magellan plans to stay invested in for the long-term is Yum! Brands, which is the business behind KFC, Pizza Hut and Taco Bell. Perhaps that means that franchisee business Collins Foods Ltd (ASX: CKF) will continue to be a strong investment?
Two of the other businesses that he really likes for the long-term are Alibaba and LVMH because of the rise of the Chinese consumer.
There are no direct ways to invest in those types of businesses on the ASX. So the best way might be an investment in Magellan Financial Group or perhaps one of its listed investment trusts (LITs) Magellan Global Trust (ASX: MGG) or Magellan High Conviction Trust (ASX: MHH).
