Over the weekend I wrote about how a single $20,000 investment in many popular ASX shares would have generated significant wealth for investors over the last decade.
With that in mind, I thought I would pick out three shares which I would invest $20,000 into this week. They are as follows:
A2 Milk Company Ltd (ASX: A2M)
This infant formula and dairy company could be a great option for that $20,000 investment. It has been a strong performer over the last few years and this has continued in FY 2019. Last month the company released its half year results and revealed a 41% increase in revenue and a 55.1% jump in net profit after tax. This strong growth was driven largely by the increasing demand for its infant formula products in China. Pleasingly, management isn't resting on its laurels and is now increasing its marketing efforts in the country significantly. I expect this to lead to further increases in demand, underpinning strong earnings growth for many years to come.
Appen Ltd (ASX: APX)
Another top option for these funds could be Appen. It is a global leader in the development of high-quality, human annotated datasets for machine learning and artificial intelligence. In FY 2018 the company delivered an incredible 153% increase in underlying EBITDA to $71.3 million thanks to increasing demand for quality training data from the accelerating AI market and the acquisition of Leapforce. With the AI market set to continue growing at a rapid rate over the next decade, I believe Appen is well-positioned to continue its strong form for some time to come. Especially given the acquisition of Figure Eight this month for upwards of US$300 million.
Bravura Solutions Ltd (ASX: BVS)
Bravura is a provider of software products and services to the wealth management and funds administration industries. Like the others, it has been growing at an impressive rate over the last few years and this has continued to be the case this year. In the first half of FY 2019 Bravura posted a 24% increase in half year revenue to $127.4 million and a 28% lift in EBITDA to $23.8 million. The main driver of this growth was the company's popular Sonata wealth management product. Strong demand for the platform led to Wealth Management segment revenue growing 24% to $90.4 million. The good news is that Sonata is only scratching at the surface of a massive market opportunity, which I believe positions Bravura perfectly to achieve above-average growth over the next decade.
