2 ASX stocks that could 10x your $15,000

Here are two candidates I am tipping for big long term returns.

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Key points

  • A company specialising in counter-drone technology has significant potential due to its role in the growing demand for drone defence solutions, spurred by increased global defence budgets.
  • An online-only furniture and homewares retailer is set to benefit from the growing shift toward e-commerce, leveraging its digital platform to capture market growth as consumer habits change.
  • Both stocks offer the potential for 10x returns with patience and a long-term investment perspective, emphasising the need for compounding and industry maturation.

Every investor dreams of finding the next ASX stock that can turn a modest investment into a small fortune.

While there are no guarantees in the market, history shows that some businesses do manage to grow far beyond expectations.

With that in mind, two ASX shares that stand out as potential long-term wealth builders are named below.

Here's what you need to know about them and why I think they could have the potential to multiply a $15,000 investment many times over.

DroneShield Ltd (ASX: DRO)

DroneShield has carved out a strong position in an industry that is becoming increasingly important: counter-drone technology.

As drones become more accessible, the need to defend against them is growing — particularly in the military and government sectors.

Global defence spending is on the rise, with countries ramping up budgets to deal with modern threats. Drone warfare has become a key feature of conflicts worldwide, and that has put companies like DroneShield firmly on the radar of governments and defence agencies.

The company's systems are already being deployed to protect critical infrastructure and defence operations. If adoption continues to scale, DroneShield could find itself capturing a much larger share of a market that is set to expand significantly in the coming years.

Of course, the road to 10x returns won't be smooth. Defence contracts can be lumpy, and competition in the sector is high. But the ASX stock's technology advantage and early customer wins suggest it could be a major beneficiary of long-term defence spending trends.

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster is another ASX stock with big ambitions. As an online-only retailer of furniture and homewares, it is benefiting from the continued shift in consumer spending from physical stores to digital platforms.

Australia's e-commerce penetration still trails global leaders, which means there is plenty of runway for growth. At the same time, Temple & Webster has been steadily expanding its product range, improving logistics, and building a brand that resonates with consumers looking for convenience and value.

While retail can be cyclical, the company's pure-play online model gives it an edge as shopping habits evolve. With a growing customer base and the potential to scale margins as sales increase, this ASX stock could continue compounding sales and profits at a rate well above the broader market.

Patience is required

It is important to remember that neither DroneShield nor Temple & Webster will deliver a 10x return overnight. Even if both outperform the market, compounding takes time. To put it into perspective, if a stock compounds at 25% per year, it takes just over 10 years to deliver a tenfold return.

That's much faster than the long-term market average of around 10% per annum, but still requires patience, discipline, and a tolerance for volatility along the way.

Foolish takeaway

DroneShield and Temple & Webster both have strong positions in industries with structural tailwinds. While it won't happen overnight, their potential to grow faster than the market makes them exciting candidates for investors who can think long term.

For those willing to wait, a $15,000 investment today could one day look very different.

Motley Fool contributor James Mickleboro has positions in Temple & Webster Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield and Temple & Webster Group. The Motley Fool Australia has recommended Temple & Webster Group. 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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