If you're lucky enough to have $20,000 to invest in the share market, then listed below are three shares I would consider buying with these funds.
I believe all have strong growth potential and could generate outsized returns for investors over the next decade. Here's why I rate them highly:
Cochlear Limited (ASX: COH)
I think that Cochlear would be a great option for these funds. I continue to believe the hearing solutions company is one of the best buy and hold options on the local share market. This is due to it being well-positioned for strong long term growth thanks to the ageing populations tailwind. By 2050 there are forecast to be 1.5 billion people over the aged of 65. This will be almost triple the number of over 65s in 2010. I expect this tailwind to drive a sustained increase in demand for its cochlear implantable devices over the next few decades.
Nearmap Ltd (ASX: NEA)
The Nearmap share price has been a very disappointing performer in 2020. Due to a surprise guidance downgrade, the aerial imagery technology and location data company's shares have come under significant pressure. Whilst the downgrade was disappointing, I think the selloff has been severely overdone and has left its shares trading at a very attractive level. In light of this, I think it could be worth considering a long-term focused investment in Nearmap's shares. Especially given its positive long-term outlook thanks to its sizeable market opportunity and high quality product offering.
Xero Limited (ASX: XRO)
Another share to consider investing that $20,000 into could be Xero. I think the cloud-based business and accounting software provider could be a great long-term investment option due to its strong growth potential. This is thanks to the opportunity that its high quality software has to become the platform of choice for small and medium sized businesses across the globe. If it achieves this, it should support above-average sales growth for a long time to come.
