If you’re in your twenties (or even your thirties) it’s likely you’re just starting out on your investment journey with decades ahead of you to grow and compound your wealth.
That’s incredibly exciting!
Time is a huge asset to have on your side, so even if you’re starting off with a small amount to invest, starting early, investing regularly and leaning from any mistakes will help drive you towards your goals.
Buying units in an exchange traded index tracking fund can be an excellent way to start. These funds have a great history of outperforming actively managed investment funds and reduce the firm specific risk, which comes with owing individual companies.
However there is still something special about owning a piece of a company directly, especially being able to walk in the door as if you part-own the place. If you’re comfortable taking on the extra risk, here are three companies to consider buying today.
1. XERO FPO NZX (ASX: XRO)
Xero sells cloud accounting services to small and medium businesses. It’s a relatively young company and is not yet producing a profit which adds risk, but Xero is growing revenue at an exceptional pace and is expanding globally.
The growth story could take years to play out, so it pairs well with investors with time on their side.
2. ResMed Inc. (CHESS) (ASX: RMD)
ResMed manufactures breathing assistance products and should benefit from the trend of aging populations over the next decade.
The company has consistently grown earnings per share over the last 10 years and although a reasonably mature business it has only moderate debt and a good return-on-equity (ROE), which could produce considerable wealth in the years to come.
3. Orion Health Group Ltd (ASX: OHE)
Orion Health blends exposure to tech and healthcare, providing software that links differing healthcare systems to each other. This greases the flow of data and patient healthcare records. These systems optimise healthcare information flows and save hospitals and governments hundreds of thousands of dollars annually.
Orion has grown revenues at an average compounded rate of 25% for the last seven years and although the company does not yet report a profit. It has a major advantage in the field as a first mover.
While I like the look of all three companies today, if you prefer a steady stream of dividends from your investments, here are the BEST companies to consider today:
Motley Fool contributor Regan Pearson owns shares of Xero. The Motley Fool Australia owns shares of 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.