If you're interested in building your wealth, then I believe that thinking long term is the best way to do it.
This is because by investing with a long time horizon, you can benefit from the power of compounding.
This is essentially earning a return on your return, which accelerates the process. It explains why $50,000 generating an annual return of 10% per annum would turn into ~$130,000 in 10 years.
With that in mind, I have picked out three ASX shares that I believe could provide strong returns for investors over the next decade and beyond:
BetaShares NASDAQ 100 ETF (ASX: NDQ)
I think the BetaShares NASDAQ 100 ETF is well worth considering. It provides investors with exposure to the 100 largest non-financial shares on the NASDAQ. This includes behemoths such as Amazon, Facebook, and Microsoft. As I believe the majority of the companies on this index have the potential to grow at a quicker rate than the global economy, I expect the ETF to provide investors with strong returns for many years to come.
NEXTDC Ltd (ASX: NXT)
Another ASX share I would suggest you look at is NEXTDC. It is a leading Data Centre-as-a-Service provider with a portfolio of world class centres in key locations across Australia. I believe the company is perfectly positioned for growth thanks to the structural shift to the cloud. Another positive is its recent $672 million equity raising, which will strengthen its balance sheet and fund its strategic expansion plans.
SEEK Limited (ASX: SEK)
I think this job listings company would be a top option for investors. While I'm a big fan of its ANZ business, I think its rapidly growing China-based Zhaopin business is the real reason to invest. In the first half Zhaopin contributed 47.8% of SEEK's total revenue, compared with 25.6% by the ANZ business. Given how lucrative the China market is, I expect Zhaopin to underpin strong growth for many years once the crisis passes.
