Here are 3 ASX shares to buy today with $5,000

Due to the power of compounding interest, if you can invest $5,000 into the share market on an annual basis over a long enough period, you could create incredible wealth for yourself.

For example, if you invest $5,000 into the share market each year for 30 years and earn an average return of 8% per annum, in three decades you would have accumulated a sum of $612,000.

If you have time on your side and can make it 40 years, this sum increases to a massive $1.4 million.

In light of this, I thought I would pick out three shares that I believe are capable of generating returns of this level or better over the long-term.

Here’s why they could be great options for your $5,000 investment:

Altium Limited (ASX: ALU)

Altium is an electronic design software company which I believe could be a great long-term buy and hold investment due to its exposure to the rapidly expanding Internet of Things market. With the majority of connected devices requiring printed circuit boards (PCB) inside them, I expect demand for Altium’s award-winning PCB design software will continue to grow at a strong rate for many years to come. The company is targeting 100,000 Altium Designer subscribers “well before” 2025, compared to almost 40,000 in FY 2018.

Cochlear Limited (ASX: COH)

Another great option for those that are focused on long-term investing could be this hearing solutions company. Thanks to its wide distribution network and ageing global populations, I believe it is well-positioned to continue its solid earnings growth over the long-term as demand for hearing solutions increase. This year Cochlear expects to deliver a reported net profit of $265 million to $275 million, which will be a year on year increase of between 8% and 12%.

Webjet Limited (ASX: WEB)

Webjet is one of Australia’s leading online travel agencies. It has been growing at a strong rate over the last decade thanks largely to the seismic shift to online booking. The good news is that I believe Webjet can continue this solid form for some time to come due to the growing popularity of its brands and earnings accretive acquisitions. This year, for example, the company recently advised that it is on track to deliver underlying EBITDA of at least $110 million from its existing operations this financial year. This will be an increase of approximately 26% on FY 2018’s EBITDA of $87.4 million and doesn’t include the contribution from its Destinations of the World acquisition.

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

5 ASX Stocks for Building Wealth After 50

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