Finance guru says young Australians should FORGET about buying houses – and offers his four tips for millennials looking to invest their money
- Nathan Bell, a fund manager at Invest Smart, has offered his top investing tips
- Mr Bell listed some new growth areas that may appeal to investing millenials
- He said people don't need to stop spending and save for house to make money
Finance guru: Fund manager Nathan Bell
A finance guru has revealed his top tips for millennials looking to make money on the stock market.
Nathan Bell, a fund manager at Invest Smart, said there are other ways to increase wealth than buying an 'over-priced shoebox in the city to live in'.
The investor said he does not blame young people for spending money on avocados and holidays instead of a house deposit, given that they will be working for years longer than their parents.
But he offered some tips for how to invest at the same time so people can make the most of their cash.
Writing in a newsletter to his investors, Mr Bell listed some new growth areas that may appeal to millenials, people roughly aged 23 to 38 this year.
In the retail sector, he said investors have several options.
One is to invest in global brands like Nike, Tiffany & Co or Christian Dior while another is to focus on local businesses expanding abroad like Lovisa or Premier Investments, which owns kids' stationery supplier Smiggle.
A third option is to invest in Google and Facebook, which are fast providing virtual shopping malls.
'Soon you will be able to click straight through from a photo on Instagram to a shop that sells the shiny new shoes you admire,' he said.
In the media and communications sector, he suggested investing in data storage companies such as NextDC, Macquarie Telecommunications and 360 Capital.
Mr Bell said it may be a good option to invest in in ski resort companies such as Vail Resorts and Intrawest Resorts, both listed in the US
The fund manager said investing in new-wave transport and accommodation companies like Uber, Lyft and Airbnb is also possible - but doing to many come with a risk
Mr Bell said they are likely to get more business as we store more data then ever before.
'In 2017 more data was stored than in the previous 5,000 years of human history,' he said.
Mr Bell also recommended US broadband providers such as Comcast and Charter Communication which are busy providing millennials with fast internet so they can watch Netflix and YouTube videos.
The fund manager said another option is to look at China and India, the world's most populous countries, for investment opportunities.
Companies he mentioned were Ctrip and MakeMyTrip - which are the Chinese and Indian equivalents of Expedia and Booking.com - and the Chinese version of Tinder which is owned by US-listed business Momo.
To capitalise on increasing tourism, Mr Bell said millennials could consider investing in ski resort companies such as Vail Resorts and Intrawest Resorts, both listed in the US - or in Sydney Airport and Auckland International Airport.
He said investing in new-wave transport and accommodation companies like Uber, Lyft and Airbnb is also possible - but doing to many come with a risk.
'They are yet to prove they can be profitable,' he said.
Mr Bell said the finance sector also provides opportunities that may interest young people.
There are a host of new apps that help people delay paying for things, such as Afterpay.
'Millennials don't like borrowing money like their parents, which has also lit a rocket under the share prices of companies like Zip Co and Splitit Payments,' he said.
Mr Bell concluded his newsletter with some top tips for millennials looking to get into the stock market.
He said it's a good idea to look for companies with the potential for international growth.
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'Look for business models that have already been proven in Western markets and can be employed in emerging markets,' he said.
He used the example of Frontier Digital Ventures - a company listed on ASX that has a large stake in Zameen, the Pakistan equivalent of Realestate.com.au.
He signed off by encouraging millenials to keep holidaying.
'Change is the only constant in the millennial world but remember the earlier you start investing the more money you will have later on to pay for your interplanetary holidays with SpaceX or Virgin Galactic.'
- The funds that Nathan Bell manages own shares in several stocks mentioned. His recommendations are based on his opinion and should not be taken as a guide.
To capitalise on increasing tourism, Mr Bell said millenials could consider investing in ski resort companies or in Sydney Airport (pictured) and Auckland International Airport
