With the development of internet and mobile internet, more and more outstanding companies with innovative business models and technologies have emerged, providing valuable investment opportunities. Based on the context articles, top companies to invest in 2015 that are worth investing include Tencent Holdings, JAB Holding and those companies that are able to achieve vertical, 0 to 1 progress through technology and innovation. These companies have potential for sustainable long-term growth and reasonable valuations. For example, Tencent offers a potential 25% return over the next 24 months, thanks to the quickly growing mobile advertising market in China and its dominant suite of applications like WeChat. JAB Holding has built strong investment platforms across coffee & beverages, fast casual restaurants, indulgence and petcare, delivering solid risk-adjusted returns suitable for long-term investors. In addition, technology companies that can find secrets and turn them into creative business models will succeed in creating innovative monopolies. Overall, companies like Tencent, JAB Holding and innovative technology companies have promising prospects despite market fluctuations.
Tencent has promising growth driven by mobile internet and innovation
As one of the top companies in China, Tencent has a market capitalization of $240 billion. It has established a stranglehold on smartphone users’ attention and data with 3 of the top 5 mobile apps by user time spent – WeChat, QQ and Tencent Video. These apps dominate messaging, social networking and entertainment sectors across all age groups. Historically, Tencent focused more on user experience than monetization. As Tencent enhances its ad targeting abilities, its market share in online advertising will rise to levels comparable to Baidu and Alibaba. The secular trend of Chinese people adopting mobile internet instead of desktop provides strong tailwinds. Mobile advertising is expected to drive online advertising growth for years. Tencent video and news apps top their categories and will further boost growth. The high concentration and stability of BAT’s total market share suggests high entry barriers, which bodes well for Tencent’s business. With reasonable valuations, Tencent offers good upside potential.
JAB Holding built resilient consumer platforms suitable for long-term investors
Over the past decade, JAB Holding has transitioned from a family office to an investment company focused on global consumer sector. It has created strong investment platforms across coffee & beverages, restaurants, indulgence and petcare. The $10 billion assets in 2011 have now grown to over $40 billion across these platforms, delivering a solid 13% annualized return, close to its 15% goal. Outperformance typically happens during difficult macro environments like now rather than prolonged bull markets focused on growth stocks. Quality management and good capital allocation also allow JAB to overcome missteps like Coty. The investment grade rating and science-based climate targets further enable sustainable long-term compounding returns.
Technology innovation holds the key to transformative companies
As Peter Thiel discusses in Zero to One, globalization means horizontal progress by copying things, while technology enables vertical progress to create new things. Most people underestimate the importance of tech innovation. With the right ideas to find secrets and turn them into creative business models, technology companies can achieve monopolies through superior products, network effects, scale advantages and strong branding. Instead of head-on competition, innovative companies can first establish dominance in niche markets, then expand into adjacent markets. Timing entry properly as a last mover after an initial market creator also works. Companies like Google, Apple, Facebook, Palantir, Tesla exemplify success through tech innovation.
Conclusion
In conclusion, top companies to invest in 2015 with growth potential include internet/mobile leaders like Tencent, platform companies like JAB Holding as well as innovative technology companies. These companies solve high-value problems to drive sustainable long-term growth regardless of market conditions. Strong competitive advantages, reasonable valuations and secular tailwinds make them promising investment targets.
To summarize, top companies to invest in 2015 that are worth looking into include Tencent, JAB Holding and technology innovators. Tencent should grow quickly in mobile internet. JAB Holding creates resilient investment platforms. Tech innovators bring vertical progress through secrets and creativity. These companies have built solid competitive advantages to compound returns over long horizons.