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3 shares you might want to buy if you are in your 20’s

Last week, my colleague highlighted just how easy it is to create wealth through the power of compounding.

Perhaps the most important message to all investors is to invest early and to re-invest as much of your returns as possible.

If you are young, you can also afford to take higher risks as you have time on your side to recover from any losses. This means your share portfolio can afford to look very different to someone who is approaching retirement.

With that in mind, here are three higher risk shares that younger investors might want to consider as long term investments:

Nanosonics Ltd. (ASX: NAN)

Nanosonics is an exciting healthcare/technology company that has developed a revolutionary infection control system used to disinfect ultrasound probes. Although its trophon EPR system is gaining worldwide recognition as the gold standard for infection control, the company has only scratched the surface when it comes to servicing the size of the global market. With such a huge opportunity ahead of Nanosonics, I think it is an ideal candidate as a long-term buy and hold investment.

ResMed Inc. (CHESS) (ASX: RMD)

ResMed has already delivered spectacular returns to shareholders over the past decade, but I think the sleep apnoea market is only going to grow larger over the next two to three decades. Not only are people becoming more susceptible to sleep apnoea due to lifestyle factors, but healthcare professionals are also being more proactive in diagnosing and treating this easily identifiable condition. In addition to selling state-of-the-art masks and other equipment to treat patients, ResMed is also investing heavily in technology to track and monitor patients to deliver better outcomes. Importantly, this could give the company a big competitive advantage and, at the same time, provide it with a valuable source of recurring revenue.

XERO FPO NZX (ASX: XRO)

The cloud-based accounting software company has shown extraordinary subscriber number growth over recent years and has just recently cracked through the 1 million subscriber mark. Despite this, Xero still has a huge global opportunity to promote its platform as the uptake of cloud accounting is still in its early stages. The company has been investing heavily in innovation, technology, and marketing that has seen the company forgo current profits for future growth. Importantly, this is likely to benefit long-term investors who will reap the rewards of the company’s earlier investments.

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Motley Fool contributor Christopher Georges owns shares of Nanosonics Limited and ResMed Inc. The Motley Fool Australia owns shares of Nanosonics Limited and Xero. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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