Could these ASX growth shares help you retire rich?

These companies are not bargain-bin stocks, but their long-term growth runways could make them powerful wealth builders.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Retiring rich does not have to mean chasing the most speculative shares on the ASX.

I think it can come from owning exceptional businesses for a very long time and letting their earnings power build over decades.

The three ASX growth shares in this article are not bargain-bin stocks. The market knows they are high-quality companies. But I still think they could help patient investors build serious wealth by retirement.

An older women receives good news with golden sparkles and glitter shooting out of her phone.

Image source: Getty Images

Pro Medicus Ltd (ASX: PME)

Pro Medicus is one of the best examples of an ASX share that has turned specialist software into a global growth story.

The company's Visage platform is used in medical imaging, helping hospitals and healthcare systems view, manage, and distribute diagnostic images.

That may sound technical, but the investment case is fairly simple. Large hospitals produce enormous amounts of imaging data, and doctors need fast, reliable software to access it. If a system can save time, improve workflow, and support better clinical decisions, it can become highly valuable.

Pro Medicus has also kept proving its relevance with major contract wins. Its latest was a seven-year $90 million contract with Beth Israel Lahey Health for its full stack Visage 7 platform, including viewer, workflow, and open archive products.

What I like is that these wins can add to revenue visibility while also strengthening the company's reputation in North America.

The valuation is rarely cheap, and that is the main risk. But for investors thinking about retirement wealth, I think Pro Medicus remains one of the highest-quality growth shares on the ASX.

Hub24 Ltd (ASX: HUB)

Hub24 is another business I think could be much larger by the time today's investors retire.

The company provides investment platform technology used by financial advisers and their clients. It helps manage portfolios, administration, reporting, and access to investments in one place.

I like Hub24 because it sits inside a long-term shift in wealth management. Australia has a large and growing pool of retirement savings, and more people will need advice as they move through accumulation, retirement planning, inheritance, and income management.

Advisers need better tools to serve those clients efficiently and Hub24 has become one of the companies helping make that happen.

The platform model can also be attractive because scale can improve over time. As more funds move onto the platform, the business has more revenue to support product investment, service improvements, and deeper adviser relationships.

The share price can be volatile, but I believe the long-term trajectory will be upwards if it continues to win market share and grow its earnings.

TechnologyOne Ltd (ASX: TNE)

TechnologyOne is the kind of ASX growth share that can look almost boring until investors step back and look at the long-term record.

The company provides enterprise software to organisations such as governments, councils, universities, and large businesses.

These customers need systems that help run finance, payroll, asset management, student administration, and other important functions. Once software becomes embedded in those workflows, it can be difficult and disruptive to replace. That gives TechnologyOne a strong foundation.

I also like that the company has spent years moving toward a software-as-a-service model. This made its revenue more predictable and supports better margins over time.

Its UK expansion is also gaining traction. And if TechnologyOne can keep applying its model outside Australia, the growth runway could extend well beyond its domestic market.

Foolish takeaway

Retirement wealth is often built through patience rather than constant action.

Pro Medicus, Hub24, and TechnologyOne all operate in markets where better technology can solve expensive problems for customers. That gives them a genuine reason to keep growing, rather than relying only on market excitement.

I would expect volatility along the way. Quality growth shares can still fall hard when valuations are questioned.

But if these businesses keep executing over the next decade and beyond, I think they could play a major role in helping investors retire richer.

Motley Fool contributor Grace Alvino has positions in Hub24. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24 and Technology One. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended Hub24, Pro Medicus, and Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Growth Shares

Happy man at an ATM.
Growth Shares

Forget CBA: 3 ASX shares with better growth prospects

These shares might be better options for growth investors than Australia's largest bank.

Read more »

Three business people stand on platforms in the desert and look out through telescopes.
Growth Shares

2 top ASX shares to buy and hold for the next decade

These ASX shares have excellent growth outlooks.

Read more »

Rocket powering up and symbolising a rising share price.
Growth Shares

SpaceX climbs nearly 20% after its IPO. Here's why that is good news for these ASX shares

SpaceX shares are up significantly since their IPO. Here's why that is great news for two ASX-listed stocks.

Read more »

Business people discussing project on digital tablet.
Growth Shares

Where to invest $20,000 in ASX 200 shares in June

Wondering where to invest? Here are three shares that analysts rate as buys.

Read more »

A woman is excited as she reads the latest rumour on her phone.
Growth Shares

Brokers rate these 6 ASX 200 shares a strong buy, and tip upsides of up to 227%

It looks like these ASX 200 shares could drag the index higher over the next 12 months.

Read more »

A young man pointing up looking amazed, indicating a surging share price movement for an ASX company
Growth Shares

3 incredible ASX growth shares tipped to rise 20% to 70%

Brokers are tipping these shares to rise strongly from current levels.

Read more »

a man sits on a ridge high above a large city full of high rise buildings as though he is thinking, contemplating the vista below.
Growth Shares

2 top ASX shares to buy and hold for the next decade

These two investments look like excellent long-term buys today!

Read more »

A man holding a cup of coffee puts his thumb up and smiles with a laptop open.
Growth Shares

2 incredible ASX 200 shares to buy and hold for 10 years

These shares could help you build wealth over the long term.

Read more »