5 companies every growth investor should own

Max your returns over time with these growing stars.

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As a young and ambitious 20-something it’s likely you are just starting out on your investment journey. But whether you aspire to retire young and rich, or just want to manage your own money, with time on your side you can afford a little added risk.

Companies with strong growth prospects and competitive advantages will help to grow your wealth and could one day become the blue-chip stocks of tomorrow. Here are five such companies that every 20-something should consider owning:

XERO FPO NZ (ASX: XRO)

Cloud-accounting company Xero is rapidly expanding both in Australia and around the world. If the only two certainties in life remain death and taxes, the market for Xero’s easy to use tax-accounting ‘beautiful software’ could be immense.

Xero has accrued more than 120,000 customers in Australia alone and the company is building momentum in the UK and USA.

CSL Limited (ASX: CSL)

As a key player in the global blood plasma therapies market CSL should continue to leverage its scale as spending on healthcare grows and the global population rises. The company’s strong investment in research and development will drive future product developments and earnings per share growth.

Vocus Communications Limited (ASX: VOC)

Remember a time when telephones had cables? If you’re in your 20’s probably not, but it’s likely you are in constant contact with your friends via mobile or internet. Vocus is a company which is set to profit as internet traffic grows locally and internationally. Vocus could be a key dividend stock in years to come.

Another company set to benefit is Amcom Telecommunications Limited (ASX: AMM) which owns data centres, cloud solutions and IT Services.

Contango Microcap Limited (ASX: CTN)

Finally, if you are starting out with limited capital and a flood of investing options owning shares in investment company Contango Microcap will give you exposure to a wide range of small, but highly prospective companies in one tidy, diversified package.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of January 12th 2022

Motley Fool contributor Regan Pearson does not own shares in any of the companies mentioned in this article. The Motley Fool owns shares in Xero.

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