I'm sure that many readers have aspirations to become a millionaire one day. While a lucky few may achieve this through winning the lottery, the odds are certainly not in your favour.
Instead, I would suggest readers grow their wealth by investing in the share market. Especially given how there are a number of ASX shares that have made regular investors millionaires over the last decade or two.
Take for example electronic design software company Altium Limited (ASX: ALU). Over the last 10 years the Altium share price has generated an average return of 66.4% per annum.
This means that a single $6,500 investment in 2010 would now be worth just over $1 million.
But that was then and this is now. Which ASX shares could be future millionaire makers? My money would be on these ASX shares:
ELMO Software Ltd (ASX: ELO)
I think ELMO Software is worth looking closely at and could be a future millionaire maker. It is a cloud-based human resources and payroll software company that provides a unified platform to streamline processes for businesses. ELMO was a strong performer in FY 2020 despite the pandemic. It grew its annualised recurring revenue (ARR) by 19.7% to $55.1 million. The good news is that management expects similarly strong organic ARR growth in FY 2021. But perhaps even better is the mountain of cash the company is sitting on. It ended the period with a cash balance of $140 million, the bulk of which it plans to deploy on value accretive acquisitions in the near future. Looking longer term, I believe ELMO is well placed for long term growth thanks to its massive market opportunity and the continued shift to automated platforms.
Nearmap Ltd (ASX: NEA)
Another ASX share that I think could be a future millionaire maker is Nearmap. It is a leading aerial imagery technology and location data company. I believe it has enormous potential to dominate a highly fractured market and generate very strong returns for investors over the next decade. Especially given its high quality technology (which includes an excellent new AI offering), the cost savings it offers, and its significant global market opportunity.
Pushpay Holdings Group Ltd (ASX: PPH)
A final potential millionaire maker share is Pushpay. It is a donor management platform provider for the faith sector and has been growing at a rapid rate in recent years thanks to its leadership position in a niche but lucrative market. The good news is that this rapid growth doesn't look likely to stop any time soon. Management has set itself a target of winning a 50% share of the medium to large church market in the future. This represents a US$1 billion revenue opportunity and is many times greater than FY 2020's revenue of US$127.5 million. It also looks set to deliver improving margins in the coming years thanks to the benefits of scale and last year's acquisition of Church Community Builder for total cash consideration of US$87.5 million. As a result, I expect its earnings growth to outpace its ARR growth this decade.
