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Where to invest $20,000 in ASX shares this week

As I explained here at the weekend, a single investment of $20,000 has the potential to generate significant wealth for investors over the long term.

A prime example of this is Breville Group Ltd (ASX: BRG). An investment of $20,000 in the appliance manufacturer’s shares 10 years ago would have grown to be worth a whopping $400,000 today.

Whilst not every investment will be as successful as this, I believe there are a good number of shares trading on the local market that are capable of providing outsized returns for investors in the future.

Three that I would consider investing $20,000 into this week are listed below:

Altium Limited (ASX: ALU)

I think this printed circuit board (PCB) design software provider has outstanding long-term growth potential due to its leading position in a market exposed to the Internet of Things (IoT) boom. According to IDC, global spending on IoT is expected to reach US$1.2 trillion by 2022. I believe this bodes well for Altium as the majority of IoT devices have PCBs inside them. This could lead to increasing demand for the company’s software and drive strong profit growth as it scales.

Cochlear Limited (ASX: COH)

Another quality share to consider investing that $20,000 into is Cochlear. It is a leading developer, manufacturer, and distributor of cochlear implantable devices for the hearing impaired. Due to its global distribution network, I believe Cochlear is well-placed to benefit from the ageing population tailwind. Research by the WHO estimates that there will be almost three times more people over the aged of 65 by 2050 than there were in 2010. If Cochlear can maintain its leadership position then this global trend should drive strong profit growth over the next three decades.

Webjet Limited (ASX: WEB)

A final option for that $20,000 investment is Webjet. The online travel agent has been a strong performer over the last few years and I believe it is well-positioned to continue this form long into the future. This is due to the increasing popularity of its numerous brands, the shift to online booking, and its focus on margin improvement. In addition to this, the company has opportunities to accelerate its growth through acquisitions in a highly fragmented market.

And here are more growth shares that could be great options for your next $20,000 investment. All have been rated as buys and tipped as market beaters.

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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Cochlear Ltd. 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.

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