Arguably one of the easiest ways to create wealth is by investing regularly with a long term view and taking advantage of the power of compound interest.
Given how much of an impact time has on your potential returns, I feel it is very important to start early and to re-invest as much of your returns as possible.
In addition, if you invest when you're young, you can afford to take higher risks as you have time to recover from any losses.
With that in mind, here are three top shares that younger investors might want to consider as long term investments:
Afterpay Ltd (ASX: APT)
I think Afterpay could be a great long term investment. It has been growing its underlying sales at an astonishing rate over the last few years after disrupting the payments market with its buy now pay later offering. This service has proven to be incredibly popular with both consumers and retailers and shows no signs of stopping. Another positive is that the company is still only active in the ANZ, UK, and U.S. markets. I believe in time Afterpay will expand into most developed markets, which should underpin strong sales growth for many years to come.
Jumbo Interactive (ASX: JIN)
Another option to consider buying is Jumbo Interactive. It is an online lottery ticket seller and the operator of the Oz Lotteries website. I believe it is well-placed to benefit from a shift to online gambling globally. Management certainly believes this will be the case. It is aiming to generate $1 billion in global ticket sales annually through its platform by FY 2022. This will be triple what it achieved in FY 2019.
Kogan.com Ltd (ASX: KGN)
A final share to consider is ecommerce company Kogan. While the majority of consumer spending is still made in retail stores, more and more of it is being made online. I expect this trend to accelerate in the coming years and drive strong sales and profit growth for Kogan. Especially given the increasing popularity of its products and its growing customer base. A recent update shows that it now has almost 2 million active customers. Other positives include its expansion into other verticals such as energy and mobile and the launch of Kogan Marketplace.
