I think that one of the best ways to grow your wealth is to invest regularly and over a long period of time.
For example, research by Fidelity shows that the Australian share market has generated an average total return of 9.5% per annum over the last three decades.
This means that an investment of $5,000 each year for the last 30 years would have now grown to be worth a total of $820,000 if it earned the market return.
But which shares should you buy today? I think the three ASX shares listed below would be great options for that first $5,000 investment:
a2 Milk Company Ltd (ASX: A2M)
I think this New Zealand-based fresh milk and infant formula company would be a good option for that $5,000 investment. Although its CEO has just resigned, I wouldn't let that put you off. In fact, I would argue that the news is a positive. This is because the company's former CEO was intent on sacrificing margin to fuel its growth. Whereas the board believes this is still possible with stronger margins. In light of this and the growing demand for its infant formula products in the massive China market, I'm confident it will continue growing its earnings at a strong rate for many years to come.
Webjet Limited (ASX: WEB)
Another top option for that $5,000 investment could be Webjet. I think the online travel agent is well-placed to deliver strong long-term earnings growth thanks to its popular brands, the shift to online booking, and acquisition opportunities. Another big positive in my eyes is management's focus on increasing its margins materially over the coming years. This should be very supportive to Webjet's earnings growth over the medium term.
Xero Limited (ASX: XRO)
A final option to consider for that $5,000 investment is Xero. It is a leading cloud-based business and accounting software provider which could be a great buy and hold investment option. This is due to the quality and stickiness of its product and the shift to online accounting. Last month Xero revealed that it has surpassed 2 million subscribers. Despite this stellar growth, this is still only a fraction of its enormous global market opportunity.
