Investing money into shares is the best way to generate long-term wealth in my opinion. Cryptocurrency values change wildly each day and investing in property can require taking on large amounts of debt, which can be dangerous if you lose your tenant or job. Personally, I don’t like the idea of ultra-high-risk investing, I prefer to invest my money into shares that have clear long-term growth potential but are also likely to beat the market. Here are three shares of companies I’d buy today: Domain Holdings Australia Limited (ASX: DHG) Domain Holdings is the owner of the Domain property…
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Investing money into shares is the best way to generate long-term wealth in my opinion. Cryptocurrency values change wildly each day and investing in property can require taking on large amounts of debt, which can be dangerous if you lose your tenant or job.
Personally, I don’t like the idea of ultra-high-risk investing, I prefer to invest my money into shares that have clear long-term growth potential but are also likely to beat the market.
Here are three shares of companies I’d buy today:
Domain Holdings Australia Limited (ASX: DHG)
Domain Holdings is the owner of the Domain property website and app. It essentially runs a market-leading duopoly with REA Group Limited (ASX: REA) where property owners advertise their property for sale.
I believe Domain could be a good buy for a few different reasons.
It is rated as having the best property app which is where more and more of our time is spent. It has the power to increase prices at a good rate because its prices are fairly low and property owners would be silly not to advertise on there for a couple of extra hundred dollars. As the total number of properties increase through construction the potential pool of properties that will be sold or rented each year increases, which increases potential revenue.
I believe Domain could be a better buy than REA Group because it is trading at a much lower price/earnings ratio. I’d much rather own Domain shares compared to an investment property at this point in the cycle.
Ramsay Health Care Limited (ASX: RHC)
Ramsay is one of the world’s leading private hospital operators with a major presence in Australia, France and the UK.
My favourite way to invest in shares is to do so with the intention of holding shares forever, or at least a decade or two. Ramsay is one of the best examples of a great buy-and-hold business. It has strong defensive earnings, it benefits from Australia’s ageing population with steady growth and can expand into other countries in the future.
Plus, Ramsay pays out a growing fully franked dividend which has grown every year since 2000.
Magellan Global Trust (ASX: MGG)
Magellan Global Trust is a listed investment trust (LIT) that was launched late last year to give investors an ASX-listed vehicle to get exposure to some of the biggest and best overseas businesses in the world.
The unlisted fund run by Magellan Financial Group Ltd (ASX: MFG) has outperformed its global benchmark by a significant margin over the past five years and ten years. I believe that Magellan Global Trust will continue to outperform whilst delivering pleasing income to shareholders.
Some of its current top holdings include Facebook, Alphabet (Google), Apple, Lowe’s and Kraft Heinz.
I believe all three shares will soundly beat the ASX over the next year and five years. At the current prices I’d be inclined to buy Ramsay and Magellan Global Trust. I believe that both Domain and REA Group could face negative market sentiment if the residential property market continues to sour.
I think these top shares are also great ways to boost your wealth.
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Motley Fool contributor Tristan Harrison owns shares of MAGLOBTRST UNITS and Ramsay Health Care Limited. The Motley Fool Australia has recommended Ramsay Health Care Limited. 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.