Three stocks every 30-year-old should buy

Digital payment businesses are excellent investments for 30-year-olds saving for retirement

Visa is one the largest payments groups in the world Credit: Martin Keene

Aged 30, investors should prioritise buying fast-growing companies in emerging industries, such as technology-focussed sectors. 

With some 30 to 40 years until retirement, they have an open road ahead of them and short-term bouts of volatility can be ignored in the hunt to find world-leading companies. 

Last week Telegraph Money looked at top stock picks for 18-year-olds. This week, we give recommendations for 30-year-olds keen to put their money to work in the stock market.


Digital payments is an increasingly important area. Younger investors should buy Visa to profit from the theme, according to Will Howlett, of investment manager Quilter Cheviot. 

“It is set to offer decades of growth supported by the shift from cash to digital payments. New habits formed through the lockdown, such as increased online shopping and the rise in contactless payments,” he said.  

Visa has a price-to-earnings ratio, a measure of how cheap a company is relative to its earnings, of close to 40. This is expensive (the average British company has a p/e of around 17) but worth the high price for investors with 30 years to watch it grow, according to Mr Howlett.  

Shares have been in high demand, rising 150pc in value in five years and 6pc this year. 

Merian Chrysalis  

Merian Chrysalis is an investment trust that trades on the stock market, specialising in investing in unlisted companies, and includes those involved in digital finance.

John Moore, of wealth manager Brewin Dolphin, said this was a fantastic way to buy private companies which are normally out of reach to DIY investors. 

"It invests in a basket of unlisted, fast-growing companies which can become world-leading businesses over the next 10 to 20 years. It has lots of investments in digital payment companies, which while not yet on the scale of Visa, can grow to become large companies in the future," he said. 

This includes including Klarna, the payments company, Transferwise, the Estonia-based international payments processor, and digital bank Starling

The £550m trust charges 0.98pc in fees and has returned 18pc this year. It is run by Richard Watts and Nick Williamson, two seasoned stockpickers who have had success with their Merian UK Mid Cap and Merian UK Smaller Companies Focus funds.


Like Visa, PayPal is at the forefront of the boom in online payments business. Originally used to make secure online payments on eBay, PayPal has since become a ubiquitous method of payment on more than 30 million online shops –including Netflix and Ocado. 

This growth can continue, according to Stephen Yiu, manager of the £600m Blue Whale Growth fund.

"During the previous lockdown, PayPal benefited from the accelerated adoption of digital payments – in April, it added an average of 250,000 new users per day, taking total users to 350 million globally. 

"Even when lockdown starts to ease, there has been a permanent change in consumer habits which will propel PayPal’s future growth," he said.

Shares are expensive, but worth the cost, according to Mr Yiu. PayPal has a p/e of 74, twice that of Visa, but this is because investors are betting that it will deliver faster growth in the future.

Shares have risen 75pc in value this year and are up five-fold over five years.