ASX growth shares can deliver enormous returns for investors, if we buy the right ones.
Compounding is a very powerful financial force. As Albert Einstein once said:
Compound interest is the most powerful force in the universe. Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn't pays it.
When businesses grow their earnings at a strong pace, it makes pleasing shareholder gains much more likely.
Following recent share price declines, I rate the following two businesses as excellent long-term buys.
Image source: Getty Images
Tuas Ltd (ASX: TUA)
Tuas is an ASX telco share based in Singapore, which now has more than 1.25 million mobile subscribers in the Asian country. It's winning customers over with "market leading inclusions at each price point". The business is also benefiting from expanded sales channels including Changi Airport Terminals and 7-Eleven stores.
In FY25, mobile subscribers increased 19% to 1.25 million, driving revenue growth of 29% and operating profit (EBITDA) growth of 38%. This helped the business deliver its first positive net profit after tax (NPAT) of $6.9 million, an increase of $11.3 million year-over-year.
With its planned M1 acquisition – a telco competitor in Singapore – Tuas is primed to become a much larger force in the Asian country, with significantly stronger net profit generation.
Plus, I think the high-growth ASX share has the potential to one day make a similar impact in other Asian countries like Malaysia and Indonesia.
With defensive earnings, operating leverage and a strong revenue growth outlook, I think this business has a very promising outlook. It looks better value after falling 17% from 8 September 2025.
Pinnacle Investment Management Group Ltd (ASX: PNI)
Pinnacle is a fast-growing business in the investment industry. It takes minority stakes in funds management businesses (affiliates) and then helps them grow and focus on investing activities by providing a variety of behind-the-scenes offerings, including distribution and client services, middle office and fund administration, compliance, finance, legal, technology and other infrastructure.
I thought the FY25 result demonstrated the company's ability to deliver strong growth. Its portfolio of affiliates' funds under management (FUM) ended FY25 at $179.4 billion, up 15% from 31 December 2024 and up 63% from 30 June 2024. The company FY25 net inflows came to $23.1 billion, with $16.4 billion of that coming in the second half of FY25.
This helped drive the high-growth ASX share's net profit higher by 49% to $134.4 million in FY25.
The company's affiliates have a track record of long-term outperformance of their benchmarks, which is helping drive outperformance fees and FUM growth.
I'm expecting further organic FUM growth and future investments in new fund managers. I believe this could be an excellent performer in the next few years. It has dropped 27% from 7 August 2025. It looks much better value to me now.
