Although a $10,000 investment may not seem like much in the grand scheme of things, I think it is important to understand the potential rewards of making that same investment in the market for 30 successive years.
After all, the local share market has provided investors with an average annual return of 9.1% over the last three decades according to Fidelity.
This means that if you had invested $10,000 in the market 30 years ago and then a further $10,000 each year thereafter, today your portfolio would be worth approximately $1.5 million.
While there is no guarantee that the market will provide the same level of gains over the next 30 years, by investing wisely I feel investors have a great chance of realising similar gains.
With that in mind, here are three shares I would consider investing that first $10,000 in.
Altium Limited (ASX: ALU)
Global tech giant Cisco predicts that there will be upwards of 500 billion devices and objects connected to the internet by 2030. As the vast majority of these devices require printed circuit boards (PCB) inside them, I expect demand for Altium's PCB design software could increase substantially and lead to above-average earnings growth.
CSL Limited (ASX: CSL)
I think this global biotherapeutics company is one of the best buy and hold investment options on the local share market. Thanks to its increasingly profitable immunoglobulins and specialty products businesses and its fledgling vaccines business, I expect CSL to deliver strong earnings growth for years to come.
Nextdc Ltd (ASX: NXT)
Due to the rise of cloud computing and the rapid growth in data consumption, I believe this leading data centre operator is a great buy and hold investment option. This year the company is investing heavily to increase its capacity in order to meet the expected demand with the addition of three new state of the art data centres.