Different shares suit different people’s risk profiles, but what’s for certain is that investors in their 30s probably have around 30 years of investing before they reach retirement.
A decade is a long time, 30 years is a very long time. But, that doesn’t mean investing in the riskiest share you can find. It can mean investing in shares that have excellent long-term growth potential but you don’t necessarily need to keep to a low-risk profile with shares like BWP Trust (ASX: BWP).
Here are three good growth options for people in their 30s:
BETANASDAQ ETF UNITS (ASX: NDQ)
Nearly every person in their 30s will likely use a service from Apple, Amazon, Facebook, Microsoft and Alphabet (Google) several times a day.
I can’t imagine the main smartphone players changing any time soon. Facebook will remain a social media giant with its ownership of Whatsapp and Instagram. We will keep Googling. Microsoft Word and Excel will remain integral for office workers. They won’t disappear.
This exchange-traded fund gives significant exposure to all of the above businesses, as well as the rest of 100 of the largest tech shares on the NASDAQ.
Over the past year this fund has generated a return of 32.6% for investors, I imagine it will continue to be a market-beater considering virtual reality and automated cars will be dominated by the tech giants, to name just two new industries.
WAM Microcap Limited (ASX: WMI)
The smaller the business the bigger opportunity due to how much it can grow. A $200 million can grow by ten times in value and only be a $2 billion business. If a currently-valued $2 billion business wants to grow by ten times, it would be $200 billion, one of the largest in the world.
It makes sense to invest in microcaps. However, I wouldn’t say I’m an expert at that area of the market with market capitalisations under $300 million. That’s why I’m happy to leave it to long-term outperformers like the WAM Microcap investment team. WAM Microcap is a listed investment company (LIC) that invests in small caps for you.
Over the past year to 31 August 2018 its portfolio has grown by 30.1% before fees and expenses. I wouldn’t expect the same every year, but I do think over the next decade it will outperform the ASX quite nicely after fees. But, some years will likely be very volatile.
It’s also currently trading with an ordinary grossed-up dividend yield of 3.9%. However, it is trading at a decent premium to its underlying value per share.
Costa Group Holdings Ltd (ASX: CGC)
People in their 30s supposedly love avocadoes, right? So why not invest in one of the country’s largest producer of avocadoes?
Costa also grows tomatoes, berries, citrus fruit and mushrooms. In my opinion, Costa is one of the best food-related businesses on the ASX.
The company is growing through productivity improvements, acquisitions and organic expansion in China, Australia and North Africa. It isn’t a sexy tech share but I think Costa is capable of growing profit at more than 10% a year for several years to come.
The share price has fallen nearly 20% since its report in August, making the current value look much more attractive.
It’s currently trading at 25x FY19’s estimated earnings.
I’d happily invest in all three shares at the current prices. I’m particularly drawn to Costa due to its large fall, whereas the other two ideas have performed strongly over the past year.
Man who said buy Kogan shares at $3.63 says buy these 3 ASX stocks now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.
*Returns as of 6/8/2020
Motley Fool contributor Tristan Harrison owns shares of COSTA GRP FPO and WAM MICRO FPO. The Motley Fool Australia owns shares of and has recommended BETANASDAQ ETF UNITS and COSTA GRP FPO. 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.
- The ASX 200 slid 0.72% lower today – October 20, 2020 5:05pm
- Why I just bought this ASX share for the long-term – October 20, 2020 1:22pm
- More royal commission pain: NAB (ASX:NAB) gets a $15 million fine – October 20, 2020 12:23pm