The AFR has disclosed what some of Australia's richest people believe are the next big opportunities in the emerging segment of the share market.
Most of today's mid-caps started life as an emerging stock in the last decade or two, the rich listers believe that these shares could be the next big thing:
AuMake International Limited (ASX: AU8) – Brian Flannery
The former resources rich lister has a diverse range of investments, including in AuMake shares. AuMake's business model is to sell in-demand Australian products to Chinese buyers who then sell those Australian products to mainland Chinese customers.
Two of the most popular products through its doors could be infant formula from a2 Milk Company Ltd (ASX: A2M) and Bellamy's Australia Ltd (ASX: BAL).
MMA Offshore Ltd (ASX: MRM) – David Paradice
The man behind Paradice Investment Management has identified the mining resources company as an opportunity because the industry is now turning around and commodity prices are starting to recover. There could be more share price growth as the results come in from the sector.
Yojee Ltd (ASX: YOJ) – Alex Waislitz
He has identified other companies like GetSwift Ltd (ASX: GSW), Afterpay Touch Group Ltd (ASX: APT), Hub24 Ltd (ASX: HUB) and Updater Inc (ASX: UPD).
His latest pick is Yojee, which is a logistics supply chain company using blockchain technology and it has already made a huge impact on the price returns side of things.
Lovisa Holdings Ltd (ASX: LOV) – Brett Blundy
Lovisa has been one of the few retail stocks to generate strong earnings, compared to most others which are declining. The share price has risen by 24%, which has made it glitter for shareholders.
Foolish takeaway
Sometimes rich people can make poor investment decisions too, but the ultra-wealthy could be onto something with each of their picks. Of the four above choices, I think AuMake could be the best choice because of how much demand there is for Australian products from Chinese consumers.
