Today, we’ll show you what we think are three great US stocks to buy in 2019 for Australian investors.
These stocks have not only performed well in the past year, but they have been market leaders for decades.
These are also stocks that you probably would have heard as they are international brands, with branches all over the world.
Why you should invest in the US stock market
The main reasons why you would want to invest in the US markets is for diversification and opportunity.
The Australian stock market is worth $2 trillion. This sounds like a lot until you realise that the US stock market is worth over $30 trillion.
Did you know the Australian stock market is less than 2% of the entire world?
Australian investors tend to have a very strong “home bias” when it comes to investing.
And that’s perfectly fine – it’s smart to invest in what you see, use and understand.
This is because you probably see or use these brands every day.
However, have you considered investing in US-listed, high growth, market-dominating multi-nationals that you see every day as well?
Companies like Google, McDonald’s and Facebook are giant companies we most likely see or interact with every day.
We know these type of companies make tons of money and dominate their field. But why aren’t we investing in them?
There are two reasons why I think Australians don’t invest in the US stock market (even though you know you should).
Investing in the US stock market doesn’t have to be hard
There are two main issues with investing in the US stock markets from what I have gathered.
The first issue is timing.
Depending on daylight savings, the US market opens anywhere from 11.30pm to 1.30am AEST and closes at around 6-8am.
Most people are sleeping during this time – it is not fun to trade through the night if it is not a full-time job.
The second issue is time and commitment.
Due to the timezone difference, most investors (and professional investors) are only ever good at either the Australian market or the US market.
Considering that the US market is more than twenty times larger than the Australian market, trading or analysing the US stock market can’t be just tacked on.
It needs full-time focus and a lot of effort and manpower to sift through the thousands of stocks available on the US stock market.
We know it is hard to overcome the issues regarding timing and commitment. Especially if you have a full-time job, kids and a life.
This is why we have one of Australia’s only retail night trading desk, to provide execution and advice on investing in the US stock market.
We have dedicated Advisers which trade through the night and specialise in the US stock market to get around the issues mentioned above.
With the right experience and assistance, investing in the US stock market doesn’t have to be hard.
Top 3 US stocks to buy for Australian investors
These are three multi-national, segment dominant companies that we think are great buys for an Australian portfolio.
Salesforce.com (ASX CRM)
Salesforce is a leader in the Software as a Service (SaaS) Client Relationship Management (CRM) sector.
The company provides enterprise cloud computing solutions which include Sales Cloud, the company’s main customer relationship management software-as-a-service (SAAS) product.
More than 150,000 companies use Salesforce CRM to grow their businesses by strengthening customer relationships.
The company also offers various other enterprise applications focused on customer service (Service Cloud), marketing automation (Marketing Cloud), analytics (Einstein Analytics), among others.
Salesforce is a leader in its field, growing revenue at 26% year on year.
Starbucks (NASDAQ SBUX)
Starbucks Corporation is an American coffee company and coffeehouse chain.
Starbucks was founded in Seattle, Washington in 1971. It operates more than 30,000 locations worldwide.
Its stores offer coffee and tea beverages, roasted whole bean and ground coffees, single-serve and ready-to-drink beverages, iced tea, and food and snacks; and various food products, such as pastries, breakfast sandwiches, and lunch items.
Starbucks is taking over China, the worlds largest consumer market. Operating income growth was 13% last year and we expect strong growth to continue.
Visa (NYSE V)
Visa Inc operates as a payment technology company.
The company facilitates commerce through the transfer of value and information among consumers, merchants, financial institutions, businesses, strategic partners, and government entities in more than 200 countries and territories.
It is the largest payment processor in the world. The company earns a fee every time a payment is made on its network.
It operates VisaNet, a processing network that enables authorization, clearing, and settlement of payment transactions.
They also offer fraud protection for account holders and assured payment for merchants.
In addition, the company offers card products, as well as value-added services. It provides its services under the Visa, Visa Electron, Interlink, V PAY, and PLUS brands.
Visa’s ROE stands at over 37% with EPS grew more than 17%. Phenomenal numbers for such a large company.
As one of the two dominant payment processors in the world, we expect Visa to maintain its position at the top and for strong growth to continue.
Make Your Money Work Harder For You
Picking the best US stocks to buy, timing the entry and having an edge in the market is not easy.
Download our report for the full research on the 3 stocks we looked at today. It also comes with an options strategy we use for our clients to generate a consistent return.
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This is general advice only. MF & Co Asset Management has not considered your personal financial needs, objectives or current situation. This information is not an offer, solicitation, or a recommendation for any financial product unless expressly stated. You should seek professional investment advice before making any investment decision.