While I tend to focus on UK stocks in my portfolio, I am aware there are many more companies around the world that offer something that cannot be found here at home. US shares are a great example. Some of the world’s largest technology businesses are listed on exchanges across the pond.
I think ignoring these companies entirely would be a mistake.
With that in mind, here are five top US shares I would buy for my portfolio today.
US shares to buy
The first two stocks on my list are the technology giants Apple and Microsoft. I think both of these companies provide something I cannot find in the UK.
Apple is one of the world’s largest consumer electronics companies and owns one of the planet’s most valuable brands. Meanwhile, Microsoft’s cloud computing offering and its suite of Microsoft Office products are some of the most used products among businesses across the world. These competitive advantages are the primary reasons I would buy both organisations from my portfolio of US shares today.
Despite their advantages, both companies come with their own risks as well. Regulators are planning a crackdown on technology giants in the US, which could hurt their competitive positions. They are also both competitors with billions of dollars available to fight each other.
I think many US shares look attractive due to their brand power. As well as the two stocks outlined above, Coca-Cola is another example. The enterprise sells its products worldwide, and these are not just limited to soft drinks. In 2019, the company completed its £3.9bn deal for Costa Coffee.
Coke’s brand and its financial firepower are the two reasons why I would buy this company today, despite governments globally working hard to crack down on sugary drinks.
Electric cars
Lastly, I would also acquire Tesla and Ford for my portfolio of top US shares.
Tesla is more of a speculative investment, as while I think the company has revolutionised the electric vehicle market, it is still losing money.
Meanwhile, Ford is a long-established car manufacturer. It has a global presence and has spent over 100 years refining and developing its manufacturing process and supply chains. The company is now focusing on electric and hybrid vehicles, bringing its massive firepower to play in this market.
Compared to Tesla, the company is still a novice in the market, but it is rapidly gaining ground. The group nearly tripled electric and hybrid vehicles sales in May to over 10,000 units. That is far off Tesla’s 200,000+ deliveries in the second quarter, but it does not look as if it will take it long to catch up at Ford’s current rate of growth.
Some investors may not be willing to buy both firms as they are competitors. Ford’s success is Tesla’s loss and vice versa. They are also facing challenges from other companies in the market, which may reduce growth in the long run.
