Where to invest $5,000 in the ASX

Bellamy's Australia Ltd (ASX:BAL) shares are one of three that I would invest $5,000 into this month…

a woman

I think investing in quality shares with positive long-term growth prospects for a prolonged period of time is one of the best investment strategies around.

You only need to look at what would have happened with a $5,000 investment in CSL Limited (ASX: CSL) shares 10 years ago to see this. That investment would now be worth almost $30,000.

With that in mind, here are three top buy and hold options that I would consider investing $5,000 into:

Bellamy's Australia Ltd (ASX: BAL)

With its shares down significantly from their 52-week high, I think now could be an opportune time to invest in this organic infant formula company with a long-term view. FY 2019 is destined to be a touch weaker than expected due to delays getting its CFDA approval, but once this has been granted I believe its growth will accelerate. Especially if its premiumisation strategy is a success. So at around 21x estimated FY 2019 earnings, I think its shares offer a compelling risk/reward.

Domino's Pizza Enterprises Ltd (ASX: DMP)

While I think it would be prudent to wait for Domino's highly anticipated full-year results next week first, I believe it could be well worth snapping up shares on any weakness. Although it has hit a bit of a bump in the road this year I remain confident that it would be a great long-term investment. This is because the company has significant long-term expansion plans that will see its store network more than double in size. At the same time the company is working hard to expand its margins meaningfully through the use of technology.

Macquarie Telecom Group Ltd (ASX: MAQ)

This data centre, cloud, cyber security, and telecom company's shares have been on fire this month after upgrading its profit guidance and announcing plans to expand its data centre capacity. Although I think they are about fair value now, I feel they could still be a great buy and hold investment. After all, the expansion of its data centres should allow the company to continue profiting greatly from the cloud computing boom for a long time to come.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Domino's Pizza Enterprises 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 Scott Phillips.

More on Growth Shares

A graphic of a pink rocket taking off above an increasing chart.
Growth Shares

I think these 3 ASX shares could double in the next five years

These businesses have very exciting growth outlooks.

Read more »

Two people work with a digital map of the world, planning their logistics on a global scale.
Growth Shares

3 buy-rated ASX growth shares with big international ambitions

These growth shares are highly rated by brokers. Let's see what they offer.

Read more »

Couple using their digital tablet together.
Growth Shares

I searched for the next $10 billion ASX company. These 5 caught my attention

I think these top shares have significant growth potential and are worth watching very closely.

Read more »

A young woman's hands are shown close up with many blingy gold rings on her fingers and two large gold chains around her neck with dollar signs on them.
Growth Shares

3 reasons why this top ASX 200 share is a buy

I think this business is a sparkling long-term buy!

Read more »

Buy and sell keys on an Apple keyboard.
Growth Shares

2 ASX shares highly recommended to buy: Experts

A crowd of analysts is excited by these stocks…

Read more »

Woman holding her glasses and looking at her laptop.
Growth Shares

Why I'd buy Zip and DroneShield shares today

One already looks cheap on future earnings, while the other is still building towards profitability.

Read more »

A young man punches the air in delight as he reacts to great news on his mobile phone.
Growth Shares

3 ASX shares I'd buy and hold for the next 10 years

There are good reasons why these shares could be top long-term picks.

Read more »

A white and black clock face is shown with Time to Buy written.
Growth Shares

2 top ASX shares to buy and hold for the next decade

I’m positive about the long-term future of these investments…

Read more »