Last 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 in November:
Afterpay Touch Group Ltd (ASX: APT)
I think this payments company would be a good option for investors, especially after a recent pullback in its share price. The catalyst for this was a bearish broker note out of UBS and concerns that the RBA may be looking into the BNPL industry. Afterpay has welcomed the latter and appears confident it won't disrupt its business model. I agree and continue to believe that it would be a great buy and hold option due largely to its international expansion. Afterpay has been growing exceptionally strongly in the US and UK. I expect this, and potential further expansions, to be the main driver of growth over the next decade.
Bravura Solutions Ltd (ASX: BVS)
Another tech share to consider is Bravura Solutions. It is a fast-growing provider of software solutions for the wealth management, life insurance, and funds administration industries. I'm a big fan of the company due to its popular Sonata wealth management platform, which has been growing at an impressive rate. The good news is that it still has a significant runway for growth, which I expect to underpin solid earnings growth for many years to come. This should be supported by the recent acquisitions of Midwinter and FinoComp. Both businesses are expected to bolster its offering and open the company up to new and lucrative markets.
Webjet Limited (ASX: WEB)
A final option for this $20,000 investment could be Webjet. I think leading online travel agent would be a great option due to its solid long-term growth potential and its attractive valuation. Webjet's shares have come under significant pressure this year due largely to the Thomas Cook collapse. I think they have been oversold and are now trading at a very undemanding level. Based on its last close price, Webjet's shares are changing hands at just 17x estimated FY 2020 earnings. This is despite Ord Minnett recently forecasting earnings growth of an average of ~14% per annum over the next decade.
