There are some ASX shares that could set you up for life with how much growth they may generate over the next decade.
Not every share is going to generate strong growth over the coming years. I think the best growth is over for shares like Telstra Corporation Ltd (ASX: TLS), BHP Group Ltd (ASX: BHP) and Woolworths Group Ltd (ASX: WOW). These businesses are already clear market leaders. They're huge and can't really grow very fast with low long-term revenue growth prospects.
But these ASX shares could set you up for life
Magellan Global Trust (ASX: MGG)
Magellan Global Trust is a listed investment trust (LIT) which invests in some of the best shares in the world. These businesses may not be in the quickest phase of their growth, but they're some of the most promising global businesses that could continue to generate strong compound growth returns. You just don't find these types of shares on the ASX.
Some its current top holdings include Alibaba, Alphabet, Microsoft, Tencent, Facebook, Visa and Mastercard. These businesses are very likely to perform well during this coronavirus period. Their good profit margins means the solid revenue growth turns into very attractive profit growth over time.
As a bonus, the LIT targets a 4% distribution yield on its net asset value (NAV) each year.
The combination of capital growth and attractive income should be a good mix of returns over the years to come.
Pushpay Holdings Ltd (ASX: PPH)
I believe that Pushpay is one of the most promising ASX share small caps, although it's not that small any more after going up 47% so far this week.
The electronic donation business has guided that it expects its operating profit (EBITDAF) to double in FY21 after a very solid performance in FY20. The US church sector is a big addressable market for Pushpay to target (not to mention all the other not-for-profit sectors yet to be fully chased).
Growing profit margins and attractive cashflow mean the company is going to have even better economics in the coming years. The current coronavirus conditions are horrible, but it's helping accelerate Pushpay's growth.
MFF Capital Investments Ltd (ASX: MFF)
This is a listed investment company (LIC) which invests in a portfolio of quality international shares like Visa, Mastercard and Home Depot.
It has been one of the best listed investment businesses over the past decade thanks to the stewardship of Chris Mackay, one of the country's best investors.
MFF Capital had increased its net cash position to almost 40% as at the end of April 2020. That provides an excellent cushion against any further market falls.
The LIC pays a (small) dividend, but most of the returns will come from capital growth over time.
Mr Mackay occasionally invests in MFF Capital shares, so that could be a good indicator of when to buy shares.
Foolish takeaway
I believe all three of these shares will be able to generate much better capital growth than the ASX 200 over the next decade. Pushpay in-particular could be a great share to own over the next five years, though it's the riskiest idea because it's a single share. The other two own portfolios.
