The so-called Magnificent Seven have dominated the investment landscape in recent years – but Britain’s canniest savers continue to shun them.
Preferring companies with strong dividend records, the investment choices of Isa millionaires are resolutely anti-fad, favouring well-known names and trading infrequently.
According to data from Britain’s biggest stockbroker Hargreaves Lansdown, not one of the Magnificent Seven – Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla – feature in the Isa millionaires’ most popular stocks.
Their foresight is proving well-founded, as upsets in the tech market spark expert warnings that further growth potential is limited.
Jamie Mills O’Brien, investment director at Abrdn, said: “Recent jitters in the tech market reinforce our view that investors should not be confining themselves only to the so-called Magnificent Seven when looking for growth.
“The gap in earnings growth between the largest stocks in the US market and the rest of the market is the narrowest it has been in a long time.”
Instead, Isa millionaires continue to invest in well-known British brands, prioritising consistency and long-termism.
The 10 most popular shares for Isa millionaires include Legal & General, Phoenix Group – which owns SunLife and Standard Life – and insurance company Aviva. Investment manager M&G is also on the list.
Other traditional stocks favoured by millionaire investors include BP, mining giant Rio Tinto, as well as clay brickmaker Michelmersh Brick Holdings.
But Isa millionaires also have one eye on the future – cyber security company Intercede Group and Beeks Financial Cloud Group, a cloud computing firm, also feature in the top 10 stocks.
However, while these top investors sometimes plump for stocks, Kate Marshall, an analyst at Hargreaves Lansdown, explains that most “hold funds or a mixed portfolio” rather than single shares, proving their preference to avoid risk.
She added: “They’re not in a hurry to trade them regularly either as, while most Isa millionaires traded in 2024, this has tended to be infrequent.”
Five of the most popular funds held by Isa millionaires are provided by L&G, with other names including Jupiter India, Artemis Income and WS Blue Whale Growth.
Ms Marshall said: “Isa millionaires have invested in a broad international mix of popular funds. Half were focused on a diversified mix of global companies, but there are also a couple of UK funds, including an income fund.”
With an annual tax-free contribution limit of £20,000 – meaning that the most that can be contributed in a decade is £200,000 – hitting £1m is a combination of luck, patience and discipline.
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