By Alec Hogg
When we launched the Biznews Global Share portfolio in December 2014, it was focused on the digital sector, the sector I’ve worked in since 1997. Pulled higher by Amazon and Google (now Alphabet), since inception the portfolio has delivered annualised growth of 32%. The experts say there’s even more to come.
US investment bank Goldman Sachs yesterday released an investment report predicting the continued outperformance of what it calls the FAAMGs (Facebook, Apple, Amazon, Microsoft and Google). Their research shows the surge in these share prices is supported by the soundest of foundations – their profit increases.
The Goldman Sachs analysts say during the past decade 87% of the FAAMG share price gains were the result of earnings growth, with only 13% due to higher ratings by investors, This compares with the rest of the US stock market where the earnings underpin is a more modest 73%.
So, despite having been responsible for most the US market’s recent gains, these FAAMGs are significantly less vulnerable to a correction than other US shares. Which is good news for those invested in the top performing Biznews Exponential bundle available through Easy Equities. It holds all five the FAAMGs – plus Chinese equivalents Tencent and AliBaba.
