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Where I would invest $10,000 in the ASX

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.

Looking for more ideas for the first $10,000? Then look no further than these quality growth shares which I am tipping to outperform the market in 2018.

Top 3 ASX Blue Chips To Buy In 2018

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Blackmores 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.

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