Turning $20,000 into $200,000 might sound ambitious, and to be fair, it is. But it's not impossible.
With time, discipline, and the power of compounding, that kind of return can be achieved without taking reckless risks or chasing market fads.
Even the best-performing shares on the Australian share market didn't make their shareholders rich overnight. Their success stories were built slowly, year after year, as their profits grew, dividends were reinvested, and patient investors let compounding do its thing.
So, while it won't happen in a few months, or even a few years, investors who hold for the long term and add small amounts along the way could one day turn a $20,000 investment into something far more meaningful.
Here are three Australian shares that could help make that journey possible.
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Telix Pharmaceuticals Ltd (ASX: TLX)
Telix Pharmaceuticals has quickly established itself as one of the ASX's most exciting healthcare shares. It is a leader in radiopharmaceuticals, which is a field that combines nuclear medicine and biotechnology to diagnose and treat cancers with precision.
The company's first commercial product, Illuccix, is already approved in major markets like the United States, Europe, and Australia for prostate cancer imaging. Sales have ramped up strongly, helping Telix generate consistent revenue and move closer to profitability.
What makes Telix particularly interesting is its pipeline. The company has several promising candidates in development targeting kidney, brain, and blood cancers, all markets worth billions. Each new success could significantly expand its addressable market and earnings potential.
If Telix continues executing on its growth strategy, it could evolve into a true global biotech success story.
Bell Potter is confident in the company's future and put a buy rating and $23.00 price target on its shares this week.
Temple & Webster Group Ltd (ASX: TPW)
Another Australian share with bags of potential is Temple & Webster. It has become a household name for online furniture and homewares and is still growing fast.
While many retailers struggled after the pandemic, this e-commerce specialist has managed to keep expanding by focusing on brand trust, product range, and customer experience.
In addition, the company operates in a market that is still shifting from offline to online. Australians are buying more of their big-ticket home items online than ever before, and Temple & Webster is perfectly positioned to capture that ongoing transition.
It is no wonder then that Macquarie has an outperform rating and $31.30 price target on its shares.
TechnologyOne Ltd (ASX: TNE)
Finally, TechnologyOne could be an Australian share that helps you build a $200,000 portfolio.
This software company provides enterprise resource planning (ERP) solutions to government agencies, universities, and corporations across Australia, New Zealand, and the UK.
It has a high-quality, recurring revenue business with sticky customer relationships and strong cash generation. Over the past two decades, TechnologyOne has increased its profit almost every single year, which is a track record few companies can match.
A key driver of its recent success is the shift to its Software-as-a-Service (SaaS) model, which provides predictable subscription income and higher margins. That transition has now largely been completed, setting up the company for continued compounding growth over the next decade.
In fact, management believes it positions the company to double every five years.
UBS thinks it would be a top pick right now. It recently put a buy rating and $44.50 price target on its shares.
