Holon Global Investments portfolio manager Heath Behnke reckons investing in digital infrastructure, innovative digital products and new payment fintech is the way to “future proof” an investor’s holdings.
“People mistakenly think that our products and solutions are tech funds,” he told Livewire.
“We don’t invest in tech companies. We invest in companies that embrace technology, so we look for great global business models, fueled by innovation.”
Next generation of ‘mega-caps’
“They have a spot in any modern portfolio because their balance sheets are bulletproof.”
But he has also highlighted 3 companies that he’s tipped to become the next generation of mega-cap companies.
Behnke believes these businesses have huge potential but their prospects can’t be analysed with a simple formula.
“The ones that don’t ‘fit’ a PE ratio — like Megaport Ltd (ASX: MP1), Roku Inc (NASDAQ: ROKU) or Tesla Inc (NASDAQ: TSLA) — that have all the hallmarks of exponential growth and are universal in nature.”
Megaport shares were up 1.59% on Monday to close at $13.40. The Tesla stock price rose 3.16% on Monday morning Australia time, to finish the trading session at US$589.74.
Roku shares were up 2.05% to close Monday morning at US$315.95.
Sitting on the sidelines is more risky than embracing change
According to Behnke, wealth creation is triggered these days through “innovation and disruptive new business models” — not “embracing safety and the status quo”.
“How well did failing to embrace change go for Eastman Kodak Company (NYSE: KODK)?” he said.
“It’s critical investors and those who manage investors’ money to get comfortable with change.”
The fund manager also picked out MicroStrategy Incorporated (NASDAQ: MSTR) as an intriguing buy at the moment.
The software company’s core business hasn’t been exciting the last few years. But recently it has become famous for investing its cash reserves into Bitcoin (CRYPTO: BTC).
“NASDAQ-listed MicroStrategy is also a good investment and one of the best Bitcoin proxies for Australian investors,” said Behnke.
“With central banks debasing currencies and the risk of rampant inflation increasing, we are strong believers in Bitcoin’s value proposition as a store of wealth.”