If you can spare $1,000 every other month to invest into the share market, you could generate significant wealth over the long term.
As of the end of 2019, the Australian share market had provided investors with a return of 9.1% per annum on average over the last 30 years
Based on this, if you had invested $1,000 every second month, bringing your total annual investment to $6,000, your investments would have grown to be worth approximately $910,000 today if you achieved the market return.
I believe this demonstrates why investing on a regular basis and with a long term view can be a very rewarding endeavour.
With that in mind, here are three shares that I think would be great options for a $1,000 investment today:
Bubs Australia Ltd (ASX: BUB)
Bubs is a goats milk-focused infant formula and baby food company which has been growing its sales at a very strong rate over the last few years. Previously, its top line growth came with heavy bottom line losses. But this has just started to change, with Bubs recently reporting positive operating cashflow of $2.3 million on record quarterly revenue of $19.7 million. I'm optimistic the company has now reached a scale which will make its operations more and more profitable over the coming years. As a result, I think it could be a good long term option for investors.
Pro Medicus Limited (ASX: PME)
Another growing share to consider buying is Pro Medicus. It provides a full range of radiology IT software and services to hospitals, imaging centres, and healthcare groups worldwide. I've been very impressed at the way the company has been growing its earnings over the last few years. For example, in FY 2019 it delivered a massive 91.9% increase in full year profit to $19.1 million and then in the first half of FY 2020 it followed this up with a 32.7% increase in net profit after tax to $12.1 million. Given its sizeable market opportunity and world class product, I believe it has the potential to continue growing at a strong rate over the next decade.
ResMed Inc. (ASX: RMD)
A final share to consider investing $1,000 into is ResMed. It is a leading medical device company with a focus on the sleep treatment market. Although its sleep treatment business will inevitably be impacted by the coronavirus pandemic, I believe its long term outlook remains as positive as ever. This is due to the proliferation of sleep apnoea globally and its leadership position in the lucrative market thanks to its high quality products and software. In light of this, I think it would be a good long term option for investors.
