Invest in these 2 ASX shares for a real shot at $1 million

Getting to seven figures is possible, but only if you give it a try. Check out these stocks that could take you there.

| More on:
A couple are happy sitting on their yacht.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Sure, a million bucks no longer gets you an average house in Sydney.

But becoming a millionaire still has a ring to it, right?

The fact is you can still do plenty with a cool mill in the bank — not least retire on a comfortable lifestyle.

And I can tell you the dream is within reach if you invest in ASX shares and use the power of compounding.

Here's a hypothetical.

Let's say you have $50,000 saved to start a stock portfolio. For the sake of easy maths, let's say you add $500 to that each month.

If your stocks can pump out a compound annual growth rate (CAGR) of 15%, you will be a millionaire after 18 years.

That is, if you started at 30 years old, you can tell your boss where to go at 48.

Three growth shares that could have made you a million

Now, what sort of ASX shares could you achieve 15% CAGR?

Here are three examples that experts are currently urging punters to buy: Mader Group Ltd (ASX: MAD), Telix Pharmaceuticals Ltd (ASX: TLX) and Patriot Battery Metals Inc CDI (ASX: PMT).

Mader, which provides maintenance services for mining clients, listed on the ASX in October 2019 after issuing shares at $1 during its initial public offering (IPO).

The stock is now trading around $6.40, making it better than a six-bagger in about four years, or an eye-popping CAGR of 59%.

Telix Pharmaceuticals makes cancer diagnostic and treatment products. As some of its innovations have gone through testing, approvals and commercialisation, the stock price has rocketed 1,194% over the past five years.

That equates to a CAGR of 66.77%.

Patriot Battery Metals is in the business of finding sources of lithium.

The Canadian company sold its shares at 60 cents during its IPO, then floated in December last year. Patriot Battery Metals shares are now trading around the $1 mark, making it a 67% gain over 11 months.

Experts think there's more to come from the trio

Of course, past performance is never an indicator of the future. Therefore all this phenomenal performance doesn't mean that's how well they will do in the coming years.

But I present them to you to demonstrate that forming a portfolio with 15% CAGR to make a million is not an impossible task.

Also, experts still seem to be pretty bullish on all three of our examples, so at least they think they have a reasonable chance of continuing their bull run.

According to CMC Markets, four out of five analysts that cover Mader Group are rating it as a buy right now.

Meanwhile, all seven analysts that study Telix reckon it's an add, and same with all nine professionals that cover Patriot Battery Metals.

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

More on Investing Strategies

Two happy excited friends in euphoria mood after winning in a bet with a smartphone in hand.
Investing Strategies

If I'd put $3k in this ASX mining stock at the start of 2023, I'd have $111,000 now

One gem in your portfolio could carry all the losers. And this is why we diversify.

Read more »

The sea's vastness is rivalled only by the refreshing feel of the drinks two friends share as they saunter along its edge, symbolising passive income.
Dividend Investing

How to take $3 a day and target ASX passive income for life!

Looking for income forever? You should look into ASX stocks.

Read more »

Hand of a woman carrying a bag of money, representing the concept of saving money or earning dividends.
Dividend Investing

Buy these excellent ASX dividend shares next week

Analysts think these shares could be quality options for income investors.

Read more »

A mature-aged couple high-five each other as they celebrate a financial win and early retirement
Dividend Investing

How to retire early with these ASX titans

There are so many mouth-watering dividend stocks in Australia, those who want to quit work have options.

Read more »

A woman in a bright yellow jumper looks happily at her yellow piggy bank representing bank dividends and in particular the CBA dividend
Bank Shares

If I invest $10,000 in CBA shares, how much passive income will I receive in 2024?

Is this banking option a good option for income investors?

Read more »

Young businesswoman sitting in kitchen and working on laptop.
Dividend Investing

3 ASX 200 income shares to buy now

Brokers are expecting some great yields from these income options.

Read more »

Blue chips with stock written on them.
Blue Chip Shares

ASX blue-chip shares: The best of the best for December 2023

I think these blue chips can help our portfolio avoid seeing red.

Read more »

A woman in a hammock on her laptop and drinking a smoothie
How to invest

How can I invest for passive income?

I think ASX shares are the best path to a second income.

Read more »