If you're lucky enough to have $10,000 sitting in a savings account and you're wanting to invest it in the share market, I think the three shares listed below would be great places to invest.
I believe all three have strong long term growth potential and could generate above-average returns for investors over the next decade. Here's why I like them:
Appen Ltd (ASX: APX)
Appen is the undisputed global leader in the development of high-quality, human annotated datasets for machine learning and artificial intelligence. It counts many of the biggest tech companies in the world as customers, such as Facebook and Microsoft. I believe this is a testament to the quality of its offering. Pleasingly, with spending on machine learning and artificial intelligence expected to grow materially over the next decade, I believe Appen is well-placed to continue growing its bottom line at an above-average rate for some time to come.
Nearmap Ltd (ASX: NEA)
Nearmap is a leading aerial imagery technology and location data company which I believe has a bright future ahead of it. Its products give businesses instant access to high resolution aerial imagery, city-scale 3D datasets, and integrated geospatial tools. This helps them conduct virtual site visits, which enables informed decisions, streamlined operations, and ultimately significant cost savings. The loss of a major customer and two churn/downgrade events have weighed heavily on both its performance in FY 2020 and its share price. I think this has created an attractive entry point for investors that are willing to make a long-term and patient investment. As does one of its directors, it seems. Earlier this week one the company's directors bought ~$185,000 worth of shares through an on-market trade.
Xero Limited (ASX: XRO)
Xero is a leading provider of cloud-based accounting software to small and medium-sized enterprises. It has been growing at a consistently strong rate over the last few years and this has continued in FY 2020. During the first half of the current financial year, Xero posted a 32% increase in operating revenue to NZ$338.7 million and almost doubled its EBITDA to NZ$65.9 million. It also revealed that its annualised monthly recurring revenue growth had reached NZ$764 million and that it has surpassed 2 million subscribers. Thanks to its sizeable global market opportunity, I believe there's plenty of room to grow over the next decade.
