If you’re interested in building your wealth, then I believe that thinking long term is the best way to do it.

This is because by investing with a long time horizon, you can benefit from the power of compounding.

This is essentially earning a return on your return, which accelerates the process. It explains why $50,000 generating an annual return of 10% per annum would turn into ~$130,000 in 10 years.

With that in mind, I have picked out three ASX shares that I believe could provide strong returns for investors over the next decade and beyond:

BetaShares NASDAQ 100 ETF (ASX: NDQ)

I think the BetaShares NASDAQ 100 ETF is well worth considering. It provides investors with exposure to the 100 largest non-financial shares on the NASDAQ. This includes behemoths such as Amazon, Facebook, and Microsoft. As I believe the majority of the companies on this index have the potential to grow at a quicker rate than the global economy, I expect the ETF to provide investors with strong returns for many years to come.

NEXTDC Ltd (ASX: NXT)

Another ASX share I would suggest you look at is NEXTDC. It is a leading Data Centre-as-a-Service provider with a portfolio of world class centres in key locations across Australia. I believe the company is perfectly positioned for growth thanks to the structural shift to the cloud. Another positive is its recent $672 million equity raising, which will strengthen its balance sheet and fund its strategic expansion plans.

SEEK Limited (ASX: SEK)

I think this job listings company would be a top option for investors. While I’m a big fan of its ANZ business, I think its rapidly growing China-based Zhaopin business is the real reason to invest. In the first half Zhaopin contributed 47.8% of SEEK’s total revenue, compared with 25.6% by the ANZ business. Given how lucrative the China market is, I expect Zhaopin to underpin strong growth for many years once the crisis passes.

More reading

• 3 ASX shares I’d buy because of the online sales boom
• Will Xero shares and these 2 other ASX companies be portfolio staples by 2030?
• Looking to diversify your portfolio? Try these ASX ETFs
• Is the CSL share price a buy right now?
• Why these ASX shares could help you beat the market

Motley Fool contributor James Mickleboro owns shares of NEXTDC Limited and SEEK Limited. The Motley Fool Australia owns shares of and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended SEEK Limited. 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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The ResMed Inc. (ASX: RMD) share price has been a very strong performer over the last 12 months.

Since this time last year the sleep treatment focused medical device company’s shares have stormed 43% higher.

Is it too late to buy ResMed shares?

I don’t believe it is too late to buy ResMed’s shares. In fact, I continue to believe it is one of the best buy and hold options on the local share market.

This is due to its industry-leading masks and software in an obstructive sleep apnoea (OSA) tipped to grow materially over the next decade and beyond.

One leading broker that is also a fan of the company is Goldman Sachs. This morning the broker has reaffirmed its buy rating and $27.00 price target on the company’s shares.

Why is Goldman Sachs positive on ResMed?

According to the note, Goldman hosted a call with ResMed’s management yesterday and notes that demand for OSA products has remained robust during the pandemic.

Goldman commented: “… we came away from the discussion comforted that the demand profile for OSA masks appears robust (indeed, elevated in many markets due to a heightened appreciation of respiratory care, and facilitated by effective access/distribution through Brightree/resupply).”

While it acknowledges that OSA diagnoses are down year on year, volumes are recovering quickly and are currently at approximately 85% to 90% of last year’s levels.

And the broker suspects that things could get better from here due to an unexpected consequence of the pandemic.

It explained: “In our view, an interesting development through this period is the potential for accelerated adoption of home diagnoses. Prior to Covid-19, this pathway constituted c.40% of new patient volumes in the US and, though greater reliance was initially borne out of necessity, the company is now seeing significantly more clinical/payor support than previously, potentially improving the overall penetration story through the mid-term.”

So, with research estimating that there could be almost 1 billion people globally with OSA, I feel this development bodes well for its future growth and leaves ResMed well-positioned to be a market beater again over the next decade.

More reading

• 5 things to watch on the ASX 200 on Friday
• Diversify your portfolio with 3 top ASX 200 shares from 3 sectors
• 2 ASX healthcare shares to buy for long-term growth
• You could beat the market in the 2020s with these ASX healthcare shares
• 3 companies with great intangible asset moats

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended ResMed Inc. 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.

The post Why the ResMed share price could still go higher from here appeared first on Motley Fool Australia.

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Although the All Ordinaries (ASX: XAO) index tumbled lower on Thursday, it didn’t stop some shares from pushing higher.

In fact, three shares were even able to race to new record highs. Here’s why these ASX shares are breaking records:

The A2 Milk Company Ltd (ASX: A2M) share price jumped to a record high of $20.05 on Thursday. Investors were buying the infant formula and fresh milk company’s shares after the release of a positive broker note. According to a note out of UBS, its analysts have retained their buy rating and NZ$22.00 (A$20.64) price target on its shares. The broker believes there is some upside risk to its earnings guidance for FY 2020 and suspects a new product could be launched in the not so distant future.

The Afterpay Ltd (ASX: APT) share price continued its remarkable run and reached a record high of $59.64. This latest gain appears to have been driven by a broker note out of Ord Minnett. Its analysts have retained their buy rating and almost doubled the price target on the buy now pay later platform provider’s shares to $64.70. According to the note, the broker believes Afterpay could have almost 10 million active customers using its platform by the end of the financial year. In addition to this, Afterpay has just revealed a partnership with Apple that sees its platform integrated into Apple Pay.

The Pushpay Holdings Ltd (ASX: PPH) share price stormed to a record high of $7.85 on Thursday. This latest gain means the donor management platform provider’s shares have now doubled in value since this time last year. Investors were buying Pushpay’s shares after it upgraded its earnings guidance for FY 2021 just six weeks after issuing it. At its annual general meeting the company revealed that it now expects EBITDA of US$50 million to US$54 million. This compares to its previous guidance of US$48 million to US$53 million and will be double FY 2020’s earnings.

More reading

• ASX 200 falls 0.9%, Afterpay share price hits new record
• 3 undervalued ASX growth companies to add to your portfolio
• 3 stellar ASX mid cap growth shares to buy right now
• Pushpay share price jumps nearly 10% on updated guidance
• The a2 Milk share price just hit a record high: Is it too late to invest?

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. The Motley Fool Australia owns shares of A2 Milk and AFTERPAY T FPO. 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.

The post Why a2 Milk, Afterpay, and Pushpay shares just hit record highs appeared first on Motley Fool Australia.

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