I'm a big fan of growth shares, so feel quite fortunate to have a large number of quality options to choose from on the Australian share market.
And while the coronavirus crisis could stifle their growth in the immediate term, I believe many of them will bounce back strongly in FY 2021.
Three growth shares that I believe could provide market-beating returns for investors over the next decade are listed below. Here's why I think growth investors ought to consider buying them:
Altium Limited (ASX: ALU)
Altium is an electronic design software company which I believe has the potential to generate strong returns for investors over the next decade. This is thanks to the company's award-winning Altium Designer platform, which is exposed to the rapidly growing Internet of Things market. Altium is aiming for market leadership by 2025 with 100,000 Altium Designer subscribers. It expects this to lead to US$500 million revenue, up from its forecast for almost US$200 million in FY 2020.
Bubs Australia Ltd (ASX: BUB)
Another growth share which could be destined for big things is Bubs. It is an infant formula and baby food company which has been growing at a very strong rate over the last few years. And thanks to some recent supply agreements with major supermarkets, it looks well-placed to continue this positive form. Especially given the growing demand for ANZ-manufactured infant formula in the lucrative China market.
Xero Limited (ASX: XRO)
Another growth share to consider buying is cloud-based business and accounting software provider, Xero. Although the pandemic is likely to weigh on its subscriber growth in the immediate term, I believe its long term outlook remains very positive. Especially given how the company estimates that less than 20% of the global English-speaking SME market is using cloud-based accounting software. I believe this provides it with a significant runway for growth over the next decade.
