I continue to believe that one of the best ways for investors to grow their wealth is to make long term investments in quality shares with strong business models and positive outlooks.
Three shares that tick a lot of boxes for me are listed below. Here's why I think they could provide outsized returns for their shareholders over the next decade:
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Altium Limited (ASX: ALU)
The first growth share that I would buy is electronic design software company Altium. Due to its key Altium Designer product and its exposure to the rapidly growing Internet of Things and artificial intelligence markets, I believe it is well-positioned to grow its revenue and earnings at solid rate over the coming years. Management certainly believes this will be the case. It remains confident the company will achieve its target of US$500 million in revenue, 100,000 subscriptions, and market domination. And while this appears likely to be a touch later than its original target of FY 2025 because of the pandemic, I'm very confident it will get there. Especially given the early success of its Altium 365 cloud-based offering and its other growing businesses such as NEXUS and Octopart.
Appen Ltd (ASX: APX)
Another growth share to consider buying is Appen. It is the global leader in the development of high-quality, human-annotated training data for machine learning and artificial intelligence. Appen has a massive team of 1 million+ crowd-sourced workers across the globe helping to improve the artificial intelligence models of many of the biggest tech companies in the world. Given the growing importance of artificial intelligence and machine learning and Appen's leadership position in its field, I feel it is well-placed to continue growing its earnings at a strong rate in the 2020s.
ResMed Inc. (ASX: RMD)
A final growth share to consider buying is ResMed. I think the sleep treatment-focused medical device company is well-positioned for growth in the coming years thanks to its industry-leading products, growing ecosystem of connected devices, and its sizeable market opportunity. Management estimates that there are 936 million people with sleep apnoea globally and 380 million people suffering from chronic obstructive pulmonary disease (COPD). This gives it a significant runway for growth.
