One area of the market which I'm especially positive on over the long term is the tech sector.
I believe the Australian share market is home to a large number of tech shares which have the potential to grow materially over the next decade thanks to their disruptive technologies.
Three top tech shares that I would buy for the long term are listed below. Here's why I like them:
Afterpay Ltd (ASX: APT)
This payments company has been an impressive performer over the last couple of years, generating strong returns for investors. This has been driven by the increasing popularity of the buy now pay later method with both consumers and retailers. I'm confident this trend will continue for some time to come and could make its shares market beaters through the 2020s. Especially if it expands across Europe and Asia over the next decade.
Nearmap Ltd (ASX: NEA)
Nearmap is a leading aerial imagery technology and location data company. In FY 2020 the company expects to report annualised contract value (ACV) in the range of $102 million to $110 million. While this is a large number, it is still only a fraction of the global aerial imagery market estimated to be worth US$10.1 billion in 2020. I'm confident the quality of its offering will allow it to grow its market share materially over the next decade. If it achieves this, its shares could provide very strong returns for investors in the future.
Xero Limited (ASX: XRO)
Xero is a leading cloud-based business and accounting software provider. I feel it could be a great buy and hold investment option due to the quality of its product and the shift to online accounting. In the first half of FY 2020 it revealed that it has surpassed 2 million subscribers for the first time. It is worth noting that it took Xero over ten years to reach one million subscribers, but just two and a half years for the second million. Management believes this rapid growth demonstrates the pace of Xero's adoption across a number of markets. Furthermore, despite this stellar growth in subscriber numbers, it is still only scratching at the surface of an enormous global market opportunity.
