Where I would invest $20,000 in ASX shares

Afterpay Touch Group Ltd (ASX:APT) shares are one of three that I would invest $20,000 into next week…

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

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 AFTERPAY T FPO and Bravura Solutions Ltd. The Motley Fool Australia has recommended Bravura Solutions 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.

More on Growth Shares

a happy investor with a wide smile points to a graph that shows an upward trending share price
Growth Shares

Here are the top five ASX 200 shares in Macquarie's model growth portfolio

These ASX 200 shares are highly rated by analysts at Macquarie.

Read more »

a man with a wide, eager smile on his face holds up three fingers.
Growth Shares

3 ASX shares to buy in 2024 and hold for the next 10 years

Analysts think these top shares are in the buy zone right now.

Read more »

A man leans forward over his phone in his hands with a satisfied smirk on his face although he has just learned something pleasing or received some satisfying news.
Growth Shares

4 ASX growth shares I think will benefit from interest rate cuts in 2024

Not only will home loan holders rejoice, investors of these stocks could also be yelling with joy when the Reserve…

Read more »

A smiling woman sits in a cafe reading a story on her phone about Rio Tinto and drinking a coffee with a laptop open in front of her.
Growth Shares

3 of the best ASX growth shares to buy now

Analysts see plenty of upside for these buy-rated shares.

Read more »

A man and woman in an office look at a laptop and discuss investing, budget strategies or other financial concepts
Growth Shares

Here's why analysts love these buy-rated ASX 200 growth shares

There's a reason analysts are feeling bullish about these companies.

Read more »

A woman with strawberry blonde hair has a huge smile on her face and fist pumps the air having seen good news on her phone.
Growth Shares

Big returns could be coming for high-flying Lovisa shares

Morgans doesn't believe it is too late to snap up this hot stock.

Read more »

Smiling young parents with their daughter dream of success.
Growth Shares

Why these ASX 200 growth shares could be top buys now

Analysts are feeling bullish about these growth stocks. Let’s see what they’re saying.

Read more »

Concept image of a man in a suit with his chest on fire.
Growth Shares

Ignore the noise and buy this hot ASX growth stock

A recent pullback may have created a buying opportunity according to Bell Potter.

Read more »