Do you want to get rich by investing? Then do this

I think buying and holding Zip Co Ltd (ASX:Z1P) and these ASX shares could be the key to getting rich in the future. Here's why…

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

I believe that one of the best ways to grow your wealth is to put what you can into the share market on a consistent basis and with a long term view.

For example, if you were to invest $500 every three months (a total of $2,000 a year) and earned a 9% per annum return, in 30 years your investments would be worth $300,000.

Think you can afford a little bit more every three months? Well, if you can invest $1,250 every three months (a total of $5,000 a year) and earn the same level of return, your investments will be worth almost $750,000 in 30 years.

With that in mind, I have picked out three top shares which I think would be great long term options for investors. They are as follows:

Nearmap Ltd (ASX: NEA)

The first option to consider buying is Nearmap. It is an aerial imagery technology and location data company with operations in the ANZ and North American markets. I believe it has the potential to grow materially in the future thanks to its high quality software and its leading position in a highly fragmented market currently worth $2.9 billion per year. This is materially more than the annualised contract value (ACV) of $103 million to $107 million it expects to achieve in FY 2020. In addition to this, Nearmap has the option to increase its addressable market by expanding into other territories in the future.

Ramsay Health Care Limited (ASX: RHC)

Another option to consider buying for the long term is Ramsay Health Care. Times may be hard for the leading private healthcare company right now, but I'm optimistic that many of the headwinds it is facing will ease in the near term. After which, I believe it is well placed for solid long term growth thanks to the ageing populations tailwind. Ramsay is better positioned than most thanks to its massive footprint. It is currently operating 480 facilities across 11 countries.

Zip Co Ltd (ASX: Z1P)

A final share to consider buying with a long term view is Zip Co. I think the buy now pay later provider has been a very impressive performer over the last few years and believe there is a lot more to come in the future. Especially given its recent expansion into the U.S. market through the acquisition of QuadPay. Management estimates that this key market is worth $5 trillion per year, which is materially larger than the combined value of the other markets it is operating in. And given the growing popularity of the payment method with consumers and merchants, Zip Co's future looks very bright.

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Nearmap Ltd. and ZIPCOLTD FPO. The Motley Fool Australia has recommended Nearmap Ltd. and Ramsay Health Care Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on How to invest

A woman sits in a quiet home nook with her laptop computer and a notepad and pen on the table next to her as she smiles at information on the screen.
How to invest

How to build a $100,000 ASX share portfolio starting at zero

Want to build a big portfolio? Here's the easiest way to do it.

Read more »

A man holding a sign which says How do I start?, indicating a beginner investor on the ASX
How to invest

Start buying shares in December with a spare $500? Here's how!

The best time to start investing is right now.

Read more »

Suncorp share price Businessman cheering and smiling on smartphone
How to invest

How to invest your first $1,000 in the share market the smart way

My first investment would look something like this if I were starting again.

Read more »

Beautiful young couple enjoying in shopping, symbolising passive income.
How to invest

The smart way to make a $25,000 passive income from ASX shares

This could be the smart way to make your money work for you.

Read more »

Happy young couple saving money in piggy bank.
How to invest

$20,000 in savings? Here's how you can use that to target an $8,000 yearly second income

Having $20,000 saved is more powerful than most people realise. Not because $20,000 can produce an income today, but because…

Read more »

A smiling woman with a handful of $100 notes, indicating strong dividend payments
How to invest

How to turn $50 a week into a six-figure ASX share portfolio

Small investments could grow into big wealth with this strategy.

Read more »

Excited couple celebrating success while looking at smartphone.
How to invest

Why today's cheap ASX shares could double my money during the next bull market

These shares could be the ones to buy if you are looking for undervalued options.

Read more »

A businessman compares the growth trajectory of property versus shares.
How to invest

The 10-year wealth plan: how to turn small savings into life-changing results

Building wealth doesn't need to be hard. Here's a simple plan you can follow.

Read more »