At the weekend I looked at how successful $20,000 investments in a number of popular ASX shares had been over the last 10 years.
Whilst picking market-beaters is no easy feat, I believe the three shares listed below have the potential to achieve outsized returns over the next decade.
Here's why I would invest $20,000 into them this month:
Bravura Solutions Ltd (ASX: BVS)
Bravura is a leading provider of software and services to the wealth management and funds administration industries. Its shares have been reasonably volatile this year due to its failed takeover approach for GBST Holdings Limited (ASX: GBT). However, I wouldn't worry about that failure due to the quality and positive outlook of its key Sonata wealth management platform. In addition to this, Bravura recently acquired fintech company Midwinter, which is expected to give it a new avenue for growth in an industry benefiting from structural tailwinds.
WiseTech Global Ltd (ASX: WTC)
WiseTech Global is the logistics solutions company behind the CargoWise One platform. This single-platform software solution has become a key part of the global supply chain and provides an enterprise-class management system for logistics companies across 150+ countries. Whilst its shares have been on a tear this year and a better entry point could present itself in the next few months, I still see value in its shares at the current level if you're planning to make a long-term buy and hold investment.
Xero Limited (ASX: XRO)
Another quality option for that $20,000 could be Xero. I think it has outstanding long-term growth potential thanks to the opportunity its high quality business and accounting software has to become the platform of choice for small and medium sized businesses across the globe. I've been impressed with its progress over the last few years and feel confident that this strong form will continue for a long time to come.
