3 ASX shares to buy now that could help you retire a millionaire

Analysts think these stocks are buys. Here's why they could help you grow your wealth.

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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.

Motley Fool contributor James Mickleboro has positions in CSL, Pro Medicus, and Xero. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Goldman Sachs Group, Pro Medicus, and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended CSL and Pro Medicus. 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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