I'm sure that most readers will agree that retiring as a millionaire would be very welcome.
Well, the good news is that investing in ASX shares could be one way to achieve this goal.
How can you become a millionaire with ASX shares?
The key to growing your wealth with ASX shares is to invest in quality companies with a long-term view.
By doing this, you have the power of compounding on your side, supercharging your returns every year.
The share market has generated an average return of 10% per annum. And while there is no guarantee that the market will deliver similar returns in the future, I believe it is fair to plan for such a return. But what impact could a return like that have on your portfolio?
If you invest $10,000 into ASX shares each year and generated this level of return you would have grown your wealth to approximately the following:
- 5 years: $83,000
- 10 years: $200,000
- 15 years: $390,000
- 20 years: $700,000
- 25 years: $1.2 million
You can also look to accelerate your wealth generation by increasing the amount you invest each year.
Which shares could be buys?
As I mentioned at the top, a focus on quality companies is always a good idea when investing in ASX shares.
One that could tick this box is health imaging technology company Pro Medicus Limited (ASX: PME). Goldman Sachs is very positive on the company and has a buy rating and a $134.00 price target on its shares. It said:
We view PME as the clear incumbent technology leader in a growing market with a strong financial profile and significant AI upside.
Another ASX share that gets a big thumbs up from analysts at Goldman Sachs is Xero Limited (ASX: XRO). It has a conviction buy rating and a $156.00 price target on its shares. It commented:
We see Xero as very well-placed to take advantage of the digitisation of SMBs globally, driven by compelling efficiency benefits and regulatory tailwinds, with >100mn SMBs worldwide representing a >NZ$100bn TAM.
Finally, analysts at Morgans think biotech giant CSL Ltd (ASX: CSL) would be a quality option for investors. The broker has an add rating and a $330.00 price target on its shares. It said:
[W]e continue to view CSL as a key portfolio holding and sector pick, offering double-digit recovery in earnings growth as plasma collections increase, new products get approved and influenza vaccine uptake increases around ongoing concerns about respiratory viruses.
