‘We invest primarily in funds, but one stock I would highlight is Diageo. The shares cannot be considered cheap at over 22x forward earnings, but strong growth is set to continue in emerging markets, where the aspirational middle class can increasingly afford international brands.
‘Chairman Javier Ferrán summed it up best: “Growth is supported by demographics. As incomes continue to grow, international premium spirits will become available to more than 730 million new consumers over the next decade. Additionally, we will see significant growth in the population of legal purchase age consumers, half of whom will come from India and Africa.”
‘For UK investors, it is also worth considering that 2018 will bring more Brexit-related turbulence and any sterling weakness will increase the value of overseas earnings for multinationals. Diageo continually invests in new brands to sit alongside famous names such as Johnnie Walker and Smirnoff, and has just filed to trademark “Jane Walker”, so we should expect whisky targetted at women in 2018!’