How to become a millionaire by investing in ASX shares

With the cash rate now tipped to go lower before it goes higher, if I had $5,000 sitting in a bank account I would consider putting it to work in the share market.

After all, as I mentioned here, $5,000 invested in the share market each year over the last 30 years would have grown to be worth $750,000 today if it earned the market return.

One thing that I didn’t mention at the time was just how quickly you could have then turn that $750,000 into $1 million if everything else remains equal.

Another four years earning a return of 9% would turn that $750,000 into approximately $1.06 million. I believe this demonstrates just how rewarding it can be to invest with a long-term view.

With that in mind, here is where I would consider investing that first $5,000:

Altium Limited (ASX: ALU)

I continue to believe that Altium would be a great option for that first $5,000 investment. The reason for this is that I think this electronic design software company has the hallmarks of being a fantastic long-term investment due to its award-winning software and exposure to the explosive growth of the Internet of Things market. Management appears to believe this to be case based on its aspirational revenue target. Last month it revealed its revenue target of US$500 million by 2025, which will be a 150% increase on the company’s FY 2020 revenue target.

Aristocrat Leisure Limited (ASX: ALL)

I’m a big fan of this gaming technology company and believe it could be a great buy and hold investment, especially after a sharp pullback in its share price over the last six months. I believe Aristocrat Leisure has a bright future ahead of its due to the strength of its core pokie machine business and its fast-growing digital business. I expect its exposure the mobile and social gaming market to be a key driver of growth over the next decade. At its last update the segment had 8.1 million daily active users.

CSL Limited (ASX: CSL)

This leading biotherapeutics company could be another great option for that $5,000. I believe the company is well-positioned to deliver strong earnings growth over the next decade thanks to its talented management team, growing plasma collection network, leading products, and significant investment in research and development. I expect the latter to keep CSL at the forefront of its key markets for many years to come.

And if you have a little more to invest then check out these top ASX shares that have been tipped as market beaters in 2019.

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

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