Over the last 30 years the Australian share market has provided an average annual return of 9.1% according to Fidelity.
While there is no guarantee that it will provide a similar average return over the next 30 years, if it were to do so then a simple $10,000 investment each year would grow in value to become worth approximately $1.5 million. Not bad for a $300,000 total outlay.
With that in mind, here are three shares which I would consider investing that first $10,000 into:
Blackmores Limited (ASX: BKL)
I think it is fair to say that FY 2017 was a bit of a disappointment for shareholders. But this leading health supplements company has bounced back strongly and is widely expected to return to growth again this year. And while its shares may be a little on the expensive side at the moment, I remain confident that the company is capable of growing its earnings at a rate that more than justifies the premium.
CSL Limited (ASX: CSL)
I think that this biotherapeutics company is one of the highest quality companies on the Australian share market and capable of delivering solid earnings growth and market-beating returns for the foreseeable future. This is thanks largely to the strength of its core business and also its fledgling influenza business. Overall, I think it is a great candidate for a buy and hold investment even after a strong share price gain over the last 12 months.
Ramsay Health Care Limited (ASX: RHC)
The shares of this leading private hospital operator may still be reasonably expensive even after sliding lower last year, but I believe it is more than justified given the quality of its business and its strong long-term growth prospects. Thanks to the growing demand for healthcare services from ageing populations and increased chronic disease burden, I think Ramsay has a long runway for growth that should allow it to deliver above-average earnings growth for the next couple of decade. Considering the company has a strong balance sheet it also has the opportunity to accelerate its growth through acquisitions and expansions.
