3 stocks to help double your portfolio in ten years

Select Harvests Limited (ASX:SHV), Magellan Financial Group Ltd (ASX:MFG) and Domino's Pizza Enterprises Ltd. (ASX:DMP) have achieved above average returns over the past few years.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

It's important that investors remain grounded and realistic in their expectations for the returns their portfolio will produce.

Generally speaking, the longer someone has been investing, the more they come to realise what is and isn't realistically achievable.

In contrast, investors new to the share market are more likely to have an over-hyped sense of achievable returns – they'll 'swing for the fences' and thereby risk 'striking out'.

In reality, even if an investor achieves only a relatively modest mid-single digit return, compounded over a long time frame, they can still set themselves up for a comfortable retirement…

In fact, to double your money within ten years only requires the achievement of a compound return of 7.2% per annum (pa).

One such stock which has absolutely blitzed this hurdle is Ramsay Health Care Limited (ASX: RHC) which has achieved a Total Shareholder Return (TSR)  – a measure of both capital gains and dividends reinvested – over the past decade of 23% pa.

With the above return parameters in mind, here are three stocks which have produced some of the highest three-year TSRs but which all have the potential to keep growing and could help investors achieve a portfolio return of at least 7.2% pa over the coming decade.

Select Harvests Limited (ASX: SHV) has provided shareholders with a TSR of 118% pa over the past three years. As a producer of nuts and health foods and with plenty of scope for further growth in Asian markets, Select Harvests' growth outlook remains robust.

The long-term earnings potential of Magellan Financial Group Ltd (ASX: MFG) is enticing given the backdrop of Australia's superannuation system. With a three-year TSR of 83% pa, shares in Magellan have been one of the best investments in recent years but importantly the stock could continue to provide adequate returns in the decade to come.

The extraordinary success of Domino's Pizza Enterprises Ltd. (ASX: DMP) expansion has surprised many and resulted in the pizza chain delivering a TSR of 78% pa for the last three years. The company's earnings growth is forecast to continue at an above-average pace thanks to its expansion into European markets which could lead to a reasonable TSR being achieved in over the next ten years.

Motley Fool contributor Tim McArthur has no position in any stocks mentioned. Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. The Motley Fool Australia has no position in any of the stocks mentioned. 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.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »