Building long-term wealth through an ASX growth portfolio and inclusions like Afterpay Ltd (ASX: APT) shares is a lucrative path tempting many investors. Sure, you don't get the certainty and income that more mature, dividend-paying companies can offer. But hitching your wagon to a real winner can be a life-changing experience.
So, with that in mind, here's how I would build a $100,000 ASX portfolio with ASX growth shares.
Spend $25,000 on Xero Limited (ASX: XRO) shares
Xero has been one of the biggest growth stars of the ASX for a few years now – and for good reason. This cloud-based software as a service (SaaS) company has baked up a storm with stellar subscriber growth numbers and a scalable business model. Last year alone, this company grew its subscribers by double digits in the target markets of the United Kingdom, the United States and Australia.
It grew revenue by 30% – giving an indication of the company's potential. Perhaps, unfortunately, the market has long known about its potential and shares are, therefore, priced accordingly. But that doesn't stop a real winner in the end.
Spend $25,000 on BetaShares Global Cybersecurity ETF (ASX: HACK) shares
Aside from having my favourite ticker symbol on the ASX, I think this exchange-traded fund is a worthy investment for a growth portfolio. As the name implies, this ETF invests in companies operating in the digital security sector.
I think the demand for cybersecurity services will continue to rise with the flood of commerce moving online every year (clearly accelerated in 2020). And these are exactly the kinds of companies HACK invests in. Some of its current holdings include Crowdstrike, Splunk, Cisco, and Palo Alto.
Spend $25,000 on Pushpay Holdings Ltd (ASX: PPH) shares
Pushpay is another payments company. But unlike Afterpay's buy now, pay later offering, this business targets the very niche area of donation management. It provides a model for any organisation that might still rely on the old 'pass the hat around' funding model – think churches and charities.
The signs of the trend toward a cashless society are now becoming incontrovertible. This stems heavily from the coronavirus pandemic. As such, I think this company is worth having some faith in.
Lastly, spend $25,000 on Afterpay shares
Finally, you can't have a real ASX growth portfolio without at least considering this wunderkind. And after consideration, I think Afterpay shares more than deserves a role in our growth portfolio. This company has a remarkable track record of proving its detractors wrong over its short life. It has been able to easily crack the US and UK markets and appears to be growing strongly throughout this recent coronavirus crisis, despite fears over credit risk.
I think Afterpay has a decent chance at one day rivalling the US-listed payment giants like Mastercard (NYSE: MA), Visa (NYSE: V) and American Express (NYSE: AXP). Thus, I think it's a deserving company to have in our ASX growth shares portfolio.
