As a new share investor, the chances are you have a reasonable time horizon to invest. In my opinion, ASX growth shares are one of the best asset classes to invest in to compound and grow your wealth. That’s why two thirds of the starter portfolio is built on growth shares. Here is the second group of growth shares to buy now.
A2 Milk Company Ltd (ASX: A2M)
A2 Milk is my biggest ever investing mistake. After eying off the ASX growth share in mid-2015, I chose to invest in Telstra Corporation Ltd (ASX: TLS) instead. A2 Milk is now a 30-bagger in 5 years, whereas Telstra has more than halved!
Buy this long-term winner and don’t make the same mistake I did. The returns from this point forward will be nowhere close to the past, but as Motley Fool co-founder David Gardner likes to say, “winners, win”.
Altium Limited (ASX: ALU)
Altium is another long-term winner that can continue to smash the market in the future. The printed circuit board software provider is operating in a growth industry. As the Internet of Things grows, Altium stands to benefit. The company has a long track record of setting and meeting lofty goals. The COVID-19 pandemic will have an impact in the short-term, but the future is bright for this ASX growth share.
Bigtincan Holdings Ltd (ASX: BTH)
Arguably the best named share on the ASX, Bigtincan is a software-as-a-service (SAAS) business that provides sales enablement and automation software to enterprise clients.
Bigtincan is in the early innings of what can be a massive growth story, and is the smallest company in this starter portfolio. With a market capitalisation of $433 million, the share will be volatile and comes with some risk. But if the company can continue to grow revenue at 30-40% in the medium term the stock will also have a lot of reward for shareholders.
CSL Limited (ASX: CSL)
CSL is the largest company on the ASX at more than $125 billion in market capitalisation. This provides a nice counterbalance to tiny Bigtincan. However, it doesn’t mean that you need to forgo amazing growth. The biotech company has a strong track record of double digit revenue and earnings growth. Given the quality of the business, I see this continuing in the future.
Xero Limited (ASX: XRO)
If you run a small or medium sized business, you’ve probably heard of Xero. Xero provides its customers with a best in class cloud accounting solution. These customers have primarily been in Australia and New Zealand, however the business is expanding into the UK and US.
The digitisation of tax and accounting reporting across the globe is a nice tailwind that Xero can ride to significant profitability. Another reason I love this ASX growth share is that it has a third-party marketplace for products that work with Xero. Apple Inc. (NASDAQ: AAPL) and Atlassian Corporation (NASDAQ: TEAM) are great examples of this high margin revenue.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of June 30th
Lloyd Prout owns shares of Altium and BIGTINCAN FPO. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Altium, Apple, and Atlassian. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. and Xero. The Motley Fool Australia's parent company Motley Fool Holdings Inc. recommends BIGTINCAN FPO. The Motley Fool Australia owns shares of and has recommended BIGTINCAN FPO. The Motley Fool Australia owns shares of A2 Milk. The Motley Fool Australia has recommended Apple. 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.