At the weekend I looked into how investments of $20,000 in a number of popular ASX shares fared over the last 10 years.
Given the success of these investments, I thought I would now look at a few shares which I feel investors ought to consider investing $20,000 into today for the next decade.
Here why I think these three ASX shares could provide strong returns for investors:
Altium Limited (ASX: ALU)
I think this electronic design software platform provider would be a great place to invest $20,000. I'm a big fan of Altium due to its exposure to the Internet of Things (IoT) boom. The rapidly growing IoT market should drive strong demand for its offering in the future. This is because the majority of these connected devices require software like Altium Designer and Altium 365 during the design process. Management appears confident in its outlook and is aiming for 100,000 subscriptions by FY 2025. This compares to the 50,000 subscriptions it is achieved in FY 2020. Combined with its other growing businesses, such as NEXUS and Octopart, I believe the future is bright for Altium.
Kogan.com Ltd (ASX: KGN)
Another ASX share to consider investing $20,000 into is Kogan. It is a growing ecommerce company and Australia's version of Amazon. I think it is a great long term option for investors due to the growing popularity of its website and the continued shift to online shopping in the country. Prior to the pandemic, an estimated ~10% of retail spending was being made online in Australia. I expect this number to grow materially over the next decade and underpin strong sales and profit growth for Kogan.
NEXTDC Ltd (ASX: NXT)
A final ASX share for investors to consider investing $20,000 into is NEXTDC. I think the data centre operator's shares could provide strong returns for investors over the 2020s due to its exposure to the rapidly growing cloud computing market. Thanks to the shift to the cloud, NEXTDC's world class data centres have been experiencing a material increase in demand for capacity over the last few years. And with more infrastructure expected to shift over in the next decade, I believe it is well-positioned to profit greatly.
