If you're just starting out with investing, then there's a good chance you won't be dropping $10,000 or $20,000 into the share market.
In fact, if you're like me, your first investment might be around the $1,000 mark.
To make a success of this first investment I believe investors need to focus on shares that have strong long-term growth potential. This can turn a small investment into something material given a long enough time horizon and the power of compound interest.
With that in mind, here are three shares that I think would be great options for a $1,000 investment:
Appen Ltd (ASX: APX)
I think this data solutions and services company would be a great option for investors. This is due to its leadership position in the massive artificial intelligence and machine learning markets. Given how these markets are expected to grow materially over the next decade, I feel Appen is well-placed to build on its impressive FY 2019 result. During the last financial year Appen posted an 81% increase in underlying EBITDA of $46.3 million.
Audinate Group Limited (ASX: AD8)
If you're not averse to investing in small cap shares then I think Audinate would be worth considering. It is a leading provider of digital audio visual networking technologies. These technologies are quickly becoming the de facto standard in the music and audio industry. Thanks to this, the expansion of its product offering, and increased adoption by Original Equipment Manufacturers (OEMs), Audinate posted a 44% increase in revenue to $28.3 million in FY 2019. Even better was its EBITDA growth, which jumped 395% to $2.8 million. I continue to believe that Audinate is well-placed to build on this and achieve more strong growth in FY 2020.
SEEK Limited (ASX: SEK)
Another great option for that $1,000 could be job listings company SEEK. Although its profit growth was soft in FY 2019, this was due to its investment in growth opportunities. As a result, I think investors need to focus more on its top line growth. Which was very strong once again. SEEK delivered revenue of $1,537.3 million, up 18% on the prior corresponding period. The good news is that management appears confident this strong growth can continue. So much so, it has set itself an aspirational revenue target of $5 billion by FY 2025.
