As of the end of the 2018 financial year the Australian share market had provided investors with an average return of 9.2% per annum over the last three decades, according to research by Fidelity.
This means that if you had invested $1,000 each year for the last 30 years and earned the market return, your investment would have grown to be worth over $150,000.
I believe this return shows how even investing just a small amount consistently each year can generate significant wealth.
With that in mind, I've picked out three top shares that I think would be great options for a long-term investment of $1,000 this year.
ResMed Inc (ASX: RMD)
ResMed is focused on creating innovative solutions that treat and keep people out of the hospital, empowering them to live healthier, higher-quality lives. It aims to achieve this with its portfolio of cloud-connected medical devices which care for people with sleep apnoea, COPD and other chronic diseases. Due to the quality of its products and the expanding addressable market, I believe ResMed is well-positioned to continue growing its earnings at a solid rate over the next decade.
Webjet Limited (ASX: WEB)
Last month this online travel agent posted an impressive 33% lift in half year revenue to $175.3 million and a 42% jump in interim EBITDA to $58 million. This strong result was driven largely by the continued success of its WebBeds (B2B) segment. From its continuing operations, the segment grew bookings by 50% and EBITDA by a massive 136% to $30.1 million during the half. The good news is that management appears confident that there will be more of the same in the future and has pointed to its sizeable global growth opportunities. This could make Webjet's shares a great option for that $1,000.
Xero Limited (ASX: XRO)
I think that this cloud-based business and accounting software provider would be a great option for investors that are looking to make a long-term investment. I've been very impressed at the way Xero has been growing over the last few years. Pleasingly, this has continued in FY 2019 with the company reporting further strong growth in the first half. During the half Xero posted a 37% increase in first half revenue to NZ$256.5 million and a 40% lift in annualised monthly recurring revenue to NZ$589.1 million. This strong growth was driven by an increase in subscriber numbers, its low churn levels, and an increase in its average revenue per user metric. Given its significant market opportunity globally, I believe this strong form can continue for some time to come.
