If you’re interested in building your wealth, then I believe the best way to do this is by investing with a long term view.
This is because by investing with a long time horizon, you get to benefit from the power of compounding.
Compounding is what happens when you earn interest on top of interest. Or in the case of investments, returns on top of returns.
It explains why generating a 10% per annum return on a $25,000 investment becomes $27,500 after one year and then approximately $65,000 in 10 years.
But which shares can you grow your wealth with? Listed below are two top ASX shares that I believe could provide strong returns for investors over the next decade and beyond:
Aristocrat Leisure Limited (ASX: ALL)
The first ASX share to consider buying for the long term is Aristocrat Leisure. This gaming technology company’s shares have fallen heavily in 2020 because of the pandemic. However, with casinos now reopening, I expect demand for its industry-leading poker machines will soon rebound. In the meantime, its fledgling Digital business has been booming during lockdowns and is generating material recurring revenues. When these two businesses are finally pulling together, I expect its earnings growth to accelerate.
Pushpay Holdings Group Ltd (ASX: PPH)
Another option to consider buying and holding is Pushpay. It is a fast-growing donor management platform provider for the faith and not-for-profit sectors. Unlike Aristocrat Leisure, it has been a big winner from the pandemic. The temporary closure of churches and the shift to a cashless society have accelerated demand for its platform this year. So much so, management is expecting its earnings to double in FY 2021. Looking further ahead, it is targeting a 50% share of the medium to large church market. This is a US$1 billion opportunity, which provides it with a significant runway for growth.
Man who said buy Kogan shares at $3.63 says buy these 3 ASX stocks now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.
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*Returns as of 6/8/2020
More reading
- 2 ASX shares I’d buy in a heartbeat
- 3 fantastic ASX growth shares to buy and hold
- Why it makes sense to invest in ASX tech shares
- These ASX stocks at earnings risks as the Aussie is forecast to hit US80 cents
- 4 ASX growth shares I’d buy in September
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended PUSHPAY FPO NZX. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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