When it comes to stocks, UK investment firm Blue Whale Capital favors Adobe over Apple. The firm’s flagship Blue Whale Growth Fund is heavily focused on tech stocks. Shares in the sector account for more than 60% of the value of its portfolio, which consists of stakes in just 25 (mainly US-based) “beautiful companies”.

 In an increasingly uncertain world, the fund is focused on companies with reliably recurring revenues that should be able to grow regardless of any wider economic malaise.

Software company Adobe is seen as a prime example. Demand for its digital content creation tools is sky-high – and even if a decline in online ads leads to subscribers’ usage of Adobe’s software dropping, they’ll still pay the same.

Blue Whale’s boss is less complimentary about the business models of Apple, Uber, and Zoom, however – as well as chipmakers and other electronic hardware companies. Intense competition means an expensive battle for customers, while Zoom in particular may face an uphill battle to charge for services that Microsoft and Google can afford to provide for free…

 Since its launch three years ago, the firm’s flagship fund has delivered investors 19% annualized returns; in other words, a day-one Jonah’s $1,000 would have been regurgitated as over $1,650 today. And while most global stock markets have barely grown in 2020, the Blue Whale Growth Fund is up more than 16%.