At the weekend I looked at how successful $20,000 investments had been in a number of popular ASX shares.
In one example, I found that a $20,000 investment in Altium Limited (ASX: ALU) shares 10 years ago would now be worth over $2 million.
With that in mind, I thought I would take a look at three shares which I think could generate very strong returns for investors over the next 10 years. Here's why I would invest $20,000 in these ASX shares:
Appen Ltd (ASX: APX)
Appen is the global leader in the development of high-quality, human annotated datasets for machine learning and artificial intelligence. It has a crowd-sourced team of 1 million skilled contractors powering the industry's most advanced AI-assisted data annotation platform. Unsurprisingly, this platform has caught the eye of developers, leading to Appen counting a large number of blue chip companies as customers. These include the likes of Facebook and Microsoft. The good news is that spending on machine learning and artificial intelligence is expected to grow significantly over the next decade. I expect this to lead to increasing demand for Appen's services and drive strong top and bottom line growth.
Pushpay Holdings Group Ltd (ASX: PPH)
Pushpay is a fast-growing donor management platform provider for the faith, not-for-profit, and education sectors. Due to the quality of its product, Pushpay has been growing its share of the U.S. market at a rapid rate in recent years. This has led to its recurring revenues increasing very strongly. Looking ahead, I expect its strong form to continue thanks partly to the recent acquisition of church management system provider Church Community Builder for US$87.5 million. This acquisition is expected to accelerate its revenue growth and improve its margins once fully integrated.
Xero Limited (ASX: XRO)
As with many shares in the tech sector, the Xero share price came under pressure last month amid the coronavirus-induced market volatility. I think this share price weakness has created a buying opportunity for investors. This is because I continue to believe Xero is one of the highest quality companies on the Australian share market and could be a market beater in the 2020s. Especially given how well-positioned for strong long term growth Xero is thanks to the quality and stickiness of its cloud-based accounting platform and its massive global market opportunity.
