At the weekend I looked at how successful $20,000 investments had been in a number of popular ASX shares over the last 10 years.
But that was then and this is now. So, 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:
a2 Milk Company Ltd (ASX: A2M)
This infant formula and fresh milk company’s shares have been largely unaffected by the recent market volatility. However, at 31x estimated full year earnings, I still feel its shares are trading at an attractive level for a long term investment. Especially given the incredible demand it continues to experience for its infant formula products in China. I believe this and its expanding fresh milk footprint will continue to underpin strong earnings growth over the next decade.
Altium Limited (ASX: ALU)
Another growth share to consider buying with $20,000 is Altium. It is a design software company which I believe has the potential to generate outsized returns for investors over the next decade. This is due to the company’s award-winning Altium Designer platform, which is exposed to the rapidly growing Internet of Things (IoT) market. The explosion of the IoT market has been driving increasingly strong demand for Altium Designer and looks set to continue doing so for some time to come.
Pushpay Holdings Ltd (ASX: PPH)
A final option to consider is Pushpay. It is a fast-growing donor management system provider which continues to experience strong demand for its platform even though churches around the globe have been closed to combat the spread of COVID-19. In fact, the company recently upgraded its guidance for FY 2020. It now expects its EBITDAF to between US$25 million and US$27 million. This compares to its prior guidance of between US$23 million and US$25 million. I expect a similarly strong performance over the coming years thanks to its leadership position in a lucrative market.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended PUSHPAY FPO NZX. The Motley Fool Australia owns shares of A2 Milk and Altium. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.