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Author Bio
James Mickleboro is an investment writer and analyst who has worked with The Motley Fool Australia for 10 years, covering ASX shares, market news, broker research, dividends, growth stocks, and long-term investing ideas.
Over that time, James has written extensively about Australian equities and developed a particular focus on helping everyday investors understand the stories behind share price moves, company announcements, broker views, and broader market trends.
His best investment recommendation was identifying Afterpay while it was still a small-cap growth share, before its rise into one of Australia’s biggest technology success stories. His worst investment lesson came from CSL Ltd (ASX: CSL), where he was burnt by believing management could turn the business around sooner than the market ultimately allowed.
Areas of Expertise
ASX shares
Growth and dividend investing
Broker research
Interpreting company announcements
Market news
Portfolio strategy
Long-term wealth creation
Education
Bachelor of Politics, Philosophy and Economics. CFA Institute
Social Media LinkedIn
Favorite Investment Quote
"It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price."
— Warren Buffett
Published
One of the things I love about long-term investing is the potential for compounding to turn a relatively modest investment into something much more substantial.
And I think one of the best ways to benefit from this is to identify growing businesses before they become some of the share market's largest companies.
After all, a business worth $2 billion or $3 billion today could potentially become worth $10 billion over the coming decade if it can consistently grow its earnings and successfully expand its operations.
For investors who identify these opportunities early and remain patient, the rewards could be significant.
With that in mind, I decided to look for ASX shares that I believe have a reasonable chance of reaching a $10 billion market capitalisation in the future.
The first ASX share on my shortlist is HUB24. I think this investment platform provider has an excellent opportunity to become one of Australia's largest financial services technology businesses.
Its platform allows financial advisers to manage their clients' investments and superannuation, providing access to a wide range of investment products and portfolio management tools.
And as more financial advisers move away from traditional platforms towards modern technology, HUB24 has been winning an increasing share of the market.
For example, at the end of September, HUB24 had $168.6 billion in funds under administration, representing an increase of 15% over the previous year. It also attracted $4 billion in net platform inflows during the quarter.
What I like is how additional funds flowing onto its platform can translate into higher recurring revenue without requiring a proportionate increase in operating costs. This creates opportunities for profit margins to improve as the business grows.
And HUB24 isn't standing still. It continues to invest in technology, introduce new services, and expand its relationships with financial advisers. With a current market capitalisation of approximately $5.4 billion, HUB24 would need to become almost twice as valuable to reach $10 billion.
I believe that is achievable over the next decade, especially if it continues increasing its market share and growing earnings at an attractive rate.
But HUB24 isn't the only company I found with a compelling growth opportunity.
Among the remaining four are a business already reaching more than 100 million people worldwide and another that has recently secured almost $1 billion in new contracts.
Both are still valued well below $10 billion, and I believe they represent compelling opportunities for long-term investors.
So, which other ASX shares made my shortlist, and what could take them to that milestone?
Va gur Frcgrzore dhnegre, Gryvk trarengrq HF$245 zvyyvba va erirahr, hc 19% lrne ba lrne. Znantrzrag rkcrpgf erirahr naq bgure vapbzr gb rkprrq HF$1 ovyyvba va SL 2026.
