When you start out investing you may not have a lot of funds to sink into the share market.
But I wouldn’t let that put you off. After all, even an investment of $1,000 has the potential to grow significantly over the long-term.
For example, over the last 30 years the Australian share market has provided investors with an average total return of ~9.5% per annum.
If you had invested $1,000 per year in the share market and earned the market return, your investments would be worth almost $165,000 today.
I believe this demonstrates why investing even a small amount each year can be a very rewarding experience.
With that in mind, here are three shares which I think would be great options for a $1,000 investment in November.
a2 Milk Company Ltd (ASX: A2M)
I think this infant formula and fresh milk company could be a good option for this first $1,000 investment. Due to the insatiable demand for its infant formula products in China and the expansion of its fresh milk footprint in the United States, I believe a2 Milk Company is well-placed to grow its earnings at an above-average rate for the next decade.
Webjet Limited (ASX: WEB)
Another share to consider buying with this $1,000 is Webjet. I think the online travel agent is trading at a very attractive level considering its strong long-term growth potential. According to a recent note out of Ord Minnett, it believes Webjet can grow its EBITDA by a CAGR of ~14% over the next decade. I think this makes its shares cheap at just 17x estimated FY 2020 earnings.
Xero Limited (ASX: XRO)
A final option for that $1,000 investment could be Xero. I believe the business and accounting software provider is well-placed to deliver very strong sales growth over the long term thanks to the shift to online accounting and its international expansion. Furthermore, next month when it releases its half year results, the company is widely expected to report that it has surpassed 2 million subscribers. Despite how large this number is, it is still only scratching at the surface of its massive global market opportunity.
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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 Xero. The Motley Fool Australia owns shares of A2 Milk. The Motley Fool Australia has recommended 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.