At a GSFM market outlook event, Munro Partners’ chief investment officer, Nick Griffin, discussed the possibility of finding the next Apple in the current low-yield environment, taking into consideration consecutive RBA rate cuts.
“We live in a world where stocks can go up thousands of per cent yet they can only fall 100,” he remarked.
“It’s asymmetrically in your favour to invest in stocks,” he considered, but noted the problem being that stocks are more likely to fall 100 than go up by 1,000.
As a result, Mr Griffin said, “we live in a game where there a very few winners and lots of losers”.
Lessons learned from Apple
The phenomenon of the global mobile phone market has shown the opportunities that can exist for investors in high-growth markets.
A prime example was when smartphones went from a 10 per cent share of the market to an 80 per cent share within six years. Lots of companies went broke trying to capture the growth while Apple succeeded.
According to Mr Griffin, software as a service (SaaS) or cloud computing could be one area where investors can achieve similar growth or losses comparable to the smartphone boom.
“I don’t know where the economy is going in the next 10 years. I don’t know where interest rates are going in the next 10 years. [But] I know that cloud computing is going from a 10 per cent share of all computing to around 40 to 50 per cent share,” Mr Griffin remarked.
“That is going to happen, in the same way that smartphones were going to be adopted,” he continued.
Other areas of interest
The chief investment officer said other areas of interest for high-growth investment include digital payments, global streaming, online retailers, robotic surgeries, aerospace and 5G.
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