Who wants to be a millionaire? 3 ASX shares I think could make it happen

The allure of seven figures drives many investors. Here's an example of a way to grow your nest egg to that magic number.

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Fancy having a million dollars to your name?

Even though there is only a $5 difference between having $999,995 and having a seven-figure amount in your bank account, there is something about the title of "a millionaire" that continues to fascinate investors.

Well with the power of compounding and, of course, ASX shares, you can give the dream a red hot go.

Let's take a look at three stocks that you might consider for your portfolio:

Investing in mining without investing in mining

RPMGlobal Holdings Ltd (ASX: RUL) provides software and technology services to clients in the mining sector.

So it's a way to expose your portfolio to commodities without directly investing in a notoriously cyclical industry.

Analysts at Forager expressed their bullishness with RPMGlobal recently, saying the recent annual results showed cash flow and profit numbers are rapidly improving.

"Software revenue rose more than 50%, with 56% of that dropping through to the segment profit line," they wrote in a memo to clients.

"This is despite the company paying a management incentive during the year for software sales that will be mostly recognised as revenue in subsequent years."

While past performance is never an indicator of what will happen in the future, RPMGlobal shares have pleased its investors over the past five years, gaining 115% in value.

The business that's growing because of climate change

Insurance construction services provider Johns Lyng Group Ltd (ASX: JLG) has many fans among professional investors.

According to CMC Markets, eight out of 10 analysts currently rate the stock as a buy.

And that popularity continues even after the Johns Lyng share price has rocketed a phenomenal 626% over the past half-decade.

The Motley Fool's Tristan Harrison is bullish on the stock because of the changing weather patterns due to global warming.

"There seems to be a disappointing trend that there are more damaging and expensive weather events, which can be a tailwind for the level of the company's work and earnings," he said.

"I like that the business is looking to grow in different areas as well, including its move into strata/body corporate services, as well as 'essential home services', such as smoke alarm, electrical, gas compliance, testing and maintenance services."

Cancer treatments are needed the world over

Telix Pharmaceuticals Ltd (ASX: TLX) has doubled its share price over the past 12 months.

And no wonder, as it's rapidly moving its cancer diagnostic and treatment products from the research phase into trials and commercial release.

This is another company that's popular among those who invest for a living.

All seven analysts that cover Telix, as shown on CMC Markets, currently recommend the stock as a buy.

The Motley Fool's James Mickleboro reported earlier this month that the Bell Potter team is one of those with a buy rating on the pharmaceutical company.  

"Bell Potter remains positive on the company's outlook and is forecasting second-half revenue of $274 million. This represents a 24% increase on its first-half revenues. 

"Looking further ahead, the broker sees multiple uses for PSMA PET agents beyond the label indications. It expects this to support its longer term growth."

Believe it or not, Telix shares have multiplied 13 times in value over the past five years.

A million bucks, here we come

So when can you call yourself a millionaire?

Looking at the five-year performance of the above trio, the median equates to a phenomenal compound annual growth rate (CAGR) of 48.66%.

Even if underperformance from the rest of the portfolio brought that rate down to 20% a year, seven figures is well within reach.

Assume you start with a $30,000 portfolio then you keep adding $300 each month.

After 17 years, that investment will have grown to $1,046,933.

And the best thing?

You only had to put in $91,200 of your money to get there. The rest of it was the sweet returns from the ASX shares plus compounding.

Motley Fool contributor Tony Yoo has positions in Johns Lyng Group and Telix Pharmaceuticals. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Johns Lyng Group, RPMGlobal, and Telix Pharmaceuticals. The Motley Fool Australia has recommended Johns Lyng Group, RPMGlobal, and Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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