If you want to retire rich then I think ASX shares are the best way to go about it.
Many businesses listed on the ASX have proven to be excellent wealth builders for shareholders over the long-term. Just look at what holding CSL Limited (ASX: CSL), Cochlear Limited (ASX: COH) or REA Group Limited (ASX: REA) for a decade would have done for your wealth.
The recent market volatility has shown that lower quality businesses and cyclical shares can be quickly punished.
But, I think the agricultural sector is displaying a good amount of resilience and could be a good way to profit even in these troubled times. With growing demand for food, owning these three ASX shares could mean retiring rich:
Rural Funds Group (ASX: RFF)
It's many people's dream to retire to a farm. Why not jump-start that goal by owning shares of a farm business to become rich.
Rural Funds is a real estate investment trust (REIT) that owns a variety of farm types including poultry, cattle, cotton, vineyards, macadamias and almonds.
You could become rich with this one because it could be an excellent wealth compounder. Management aim to increase the distribution by (at least) 4% every year which works well combined with the rising property values, occasional acquisitions and improvements made at the farms.
If you re-invest your distribution along the way it could be a sizeable cash payer in your portfolio in a decade.
Duxton Water Ltd (ASX: D2O)
An indirect way to profit from the agriculture sector could be to own shares of Duxton Water. It's a company that own water entitlements and leases them to others to use.
The increasing local & global demand for Australian food produce should increase the value of fresh water. Climate change could make water even more valuable. The current drought in regional areas is certainly pushing up the value of water entitlements.
If Duxton Water can steadily increase its NTA over the long-term whilst slowly increasing the dividend then it could generate very pleasing returns for shareholders.
Costa Group Holdings Ltd (ASX: CGC)
Costa has been a very good growth share since it listed a few years ago. It has expanded the fresh food categories that it grows – its main pillars are now tomatoes, berries, mushrooms, citrus fruit and avocados. The more diversification the better.
The company has a number of different growth levels it can pull. Expanding existing plantations, productivity investments, growing in new geographical areas, small bolt-on acquisitions and large acquisitions are all options. That doesn't even mention the likelihood of food price inflation.
Foolish takeaway
Each of these shares have displayed good market-beating characteristics over the past couple of years with lower volatility. At the current prices I'm most attracted to Costa because of the various growth avenues it can use to create value for shareholders.
