How I’d turn $5,000 into $100,000 with ASX growth shares

Investing in ASX growth shares can be extemely rewarding for investors prepared to hold on to them. Could my 2 picks be the next Afterpay?

| More on:
hand covered in gold spray paint touching golden egg representing asx growth shares

Image source: Getty Images

I鈥檓 a big believer in investing in quality ASX growth shares. If you had picked up Afterpay Ltd (ASX: APT) shares three years ago and held onto them until today, you would be up over 2000%. That means your initial $5,000 investment would give you a total return of more than $100,000. No property or term deposit can give you a return of 20x in just a few short years.

Of course, companies like Afterpay only come around so often. However, the idea is to monitor the share market news and look into ASX shares that present strong growth potential.

If you can identify a quality ASX growth share, it could be worth a fortune down the track.

Below, I have picked two ASX growth shares I believe have the potential to turn $5,000 into $100,000 in under a decade.

2 ASX growth shares to help turn $5,000 into $100,000

Recce Pharmaceuticals Ltd (ASX: RCE)

Recce is a medical company that is involved in development of synthetic antibodies for the treatment of blood infections and sepsis. The Australian biotech has been creating tailwinds over the past few months with a number of positive announcements.

Just today, Recce updated the market on its fight against COVID-19 with upbeat results. The Reece 327 (R327) and Reece 529 (R529) compounds showed reductions in the virus in an in-vitro study using organoids made from human airway epithelial cells.

The Recce share price is up almost 400% in year-to-date-trading, closing today’s session 12.5% higher at $1.62. The promising medical company has a market capitalisation of just $237 million. If it can reach the likes of investor favourite Mesoblast Limited (ASX: MSB) which has a market capitalisation of $2.75 billion, then shareholders could be expecting returns for Recce of more than 1000%.

Aerometrex Ltd (ASX: AMX)

Aerometrex is an aerial mapping company specialising in aerial imagery, photography, LiDAR, 3D modelling and aerial imagery subscription services. The company operates throughout Australia, and has delivered contract work to Europe, New Zealand and the United States.

The Aerometrex share price has fallen nearly 37% during year-to-date-trading as COVID-19 continues to weigh down the broader market. Pleasingly, however, the company advised it had seen minimal impact to its operations in light of the restrictions.

Aerometrex performed strongly in its FY20 results released last month. The aerial mapping specialist reported growth in key sectors such as its LiDAR and 3D portfolio as well as its MetroMap subscription-based service.

With a market capitalisation of just $120 million, this ASX growth share can currently be bought for $1.27. Aerometrex鈥檚 closest competitor Nearmap Ltd (ASX: NEA) is trading at $3.00 and has a market capitalisation of $1.36 billion. This means that Nearmap is more than 10 times bigger than Aerometrex. So, should Aerometrex deliver in the coming years, the potential rewards could be huge for shareholders.

Foolish takeaway

I think both these ASX growth shares are poised to go materially higher in the near future. Depending on your risk profile, however, I would suggest allocating no more than around 5% of your portfolio to small-cap ASX growth shares.

Wondering where you should 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 over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of January 12th 2022

Aaron Teboneras owns shares of Nearmap Ltd. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Nearmap Ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Nearmap Ltd. 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 鈴革笍 Shares to Watch

asx share price rebound represented by wooden blocks spelling rebound with coins on top
鈴革笍 Shares to Watch

Could the Zip (ASX:Z1P) share price make a comeback in 2021?聽

The Zip Co Ltd (ASX: Z1P) share price struggled in the second half of 2020, falling 8%. Compare this to …

Read more

A2 Baby formula shares
鈴革笍 Shares to Watch

What next for the a2 Milk (ASX:A2M) share price?

The A2聽Milk Company Ltd (ASX: A2M) share price has slumped to a two-year low of $11.59 (as of Tuesday’s close). …

Read more

Young boy with glasses and grey long sleeved top looking pensive as if wondering about asx share price
鈴革笍 Shares to Watch

What鈥檚 in store for the Afterpay (ASX:APT) share price in 2021?聽

The Afterpay Ltd (ASX: APT) share price has been the gift that keeps on giving in a year when most …

Read more

wondering about asx share price represented by man surrounded by question marks
鈴革笍 Shares to Watch

Is the Zip (ASX:Z1P) share price a buy yet?

The Zip Co Ltd (ASX: Z1P) share price continued its theme of underperformance on Monday, falling another 5% to a …

Read more

questioning whether asx share price is a buy represented by man in red shirt scratching his head
鈴革笍 Shares to Watch

Should you buy the Appen (ASX:APX) share price dip?

The Appen Ltd (ASX: APX) share price has struggled on all fronts of late. Not only has it underperformed the …

Read more

Clock showing time to buy, ASX 200 shares
Share Fallers

Why this broker thinks it鈥檚 time to buy Qantas (ASX:QAN) shares

With the borders of most states and territories reopening and Victoria鈥檚 coronavirus outbreak now a thing of the past, the …

Read more

wondering about asx share price represented by man surrounded by question marks
鈴革笍 Shares to Watch

Could this be why the Zip (ASX:Z1P) share price is underperforming?

The Zip Co Ltd (ASX: Z1P) share price has more than halved since its August record highs and struggled to …

Read more

Hands grabbing for high rung on a ladder pointing to the sky
鈴革笍 Shares to Watch

The Rhipe (ASX:RHP) share price has jumped 8% today. Here’s why.

The Rhipe Ltd (ASX: RHP) share price has jumped 8.59% to $1.96 after its first quarter FY21 market update today. …

Read more