Right now, we’re in the midst of a powerful technology revolution. Driven by exciting technologies such as artificial intelligence (AI), cloud computing, and robotics, this revolution is creating some incredible investment opportunities for long-term stock market investors like myself.
Are British investors missing out on this revolution though? I fear a lot might be, looking at the stocks that those in the UK are investing in today.
Yesterday’s heroes?
One thing I look at regularly is the list of the 20 most bought stocks on Hargreaves Lansdown. This provides an interesting snapshot of activity in the UK investment community.
Now, for the week ended 8 November, the 20 most purchased shares included Aviva, Phoenix Group, Marks and Spencer, Glencore, Schroders, Persimmon, GSK, Vistry, Legal & General Group, BP, Lloyds, AstraZeneca, Rolls-Royce, and John Wood Group.
I won’t go into the specifics of each of those companies here (there are some I’m bullish on and some I’m not). But it’s fair to say that none of the stocks are major plays on the tech boom.
On that list are three insurers, two housebuilders, an oil giant, an old-school bank, and a supermarket. Let’s face it, none of those industries are at the forefront of the digital revolution.
Of course, all of these stocks could potentially play a role in a diversified portfolio. For example, some offer chunky dividend yields today. Others look cheap.
It seems that a lot of investors are not focusing on technology though. And that surprises me, given what’s happening in the world today.
US tech stocks
The good news is that a handful of US-listed tech stocks were among the 20 most bought shares. These were Tesla, MicroStrategy, Nvidia, and Palantir.
Vanguard S&P 500 tracker funds VUSA and VUAG were also on the list. And these provide quite a bit of exposure to the tech sector (and names like Apple, Microsoft, and Amazon).
So, some UK investors are getting involved in the tech revolution, which is great to see. Clearly, there are a few in the UK who are not scared to invest in higher-valuation growth stocks that are listed internationally.
A UK stock for the tech revolution
It’s worth pointing out that on the London Stock Exchange, there are plenty of stocks and funds that offer exposure to the digital revolution.
One I’m a fan of is Scottish Mortgage Investment Trust (LSE: SMT). It’s an investment trust that has a focus on disruptive growth companies.
Today, this trust has holdings in Amazon, Nvidia, Tesla, Meta Platforms, SpaceX and many other disruptive companies. So, it can be a very effective way to get exposure to the tech theme.
I own a few shares in the investment trust myself within my SIPP (pension). And they’ve done well for me recently, rising nearly 30% over the last year.
Now, like a lot of tech stocks, Scottish Mortgage shares can be volatile at times. This year alone, they’ve had multiple pullbacks of 5% or more. So, they’re not going to be suitable for everyone.
I’m pretty confident that this trust is going to provide attractive returns over the long term, however. As the world becomes more tech-focused, it should do well.
The post Are British stock market investors missing out on the tech revolution? appeared first on The Motley Fool UK.
Pound coins for sale — 31 pence?
This seems ridiculous, but we almost never see shares looking this cheap. Yet this Share Advisor pick has a price/book ratio of 0.31. In plain English, this means that investors effectively get in on a business that holds £1 of assets for every 31p they invest!
Of course, this is the stock market where money is always at risk — these valuations can change and there are no guarantees. But some risks are a LOT more interesting than others, and at The Motley Fool we believe this company is amongst them.
What’s more, it currently boasts a stellar dividend yield of around 10%, and right now it’s possible for investors to jump aboard at near-historic lows. Want to get the name for yourself?
See the full investment case
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Edward Sheldon has positions in Amazon, Apple, London Stock Exchange Group Plc, Microsoft, Nvidia, and Scottish Mortgage Investment Trust Plc. The Motley Fool UK has recommended Amazon, Apple, AstraZeneca Plc, GSK, Hargreaves Lansdown Plc, Lloyds, Meta Platforms, Microsoft, Nvidia, Rolls-Royce Plc, Schroders Plc, and Tesla. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
