At the weekend I looked at how investments of $20,000 in a number of ASX shares fared over the last 10 years.

Given the success of these investments, this morning I thought I would look at a few shares which I feel investors ought to consider investing $20,000 into today for the next decade.

Here why I think these three ASX shares could provide strong returns for investors:

Altium Limited (ASX: ALU)

I think this electronic design software platform provider could be a great place to invest $20,000 with a long term view. This is due to Altium’s exposure to the Internet of Things (IoT) boom. This rapidly growing market should drive strong demand for its offering in the future as the majority of these devices require software like Altium Designer during the design process. Management appears confident in its outlook and is aiming for 100,000 subscriptions by FY 2025. This compares to the 50,000 subscriptions it is targeting this year. Combined with its other growing businesses, such as the Octopart search engine, I believe the future is bright for Altium.

Pushpay Holdings Group Ltd (ASX: PPH)

Another company which I think has a very bright future is Pushpay. It is a growing donor management platform provider for the faith and not-for-profit sectors. Pushpay has been growing at a rapid rate over the last few years thanks to the increasing adoption of its platform by churches in the United States. The good news is that management expects its strong growth to continue in FY 2021. It recently revealed that it expects to double its operating earnings in FY 2021. But it doesn’t expect its growth to stop there. The company is aiming to capture 50% of the medium to large church market in the future. This is a US$1 billion revenue opportunity and many multiples of its current revenue.

Ramsay Health Care Limited (ASX: RHC)

A third ASX share to consider investing $2o,000 into is Ramsay Health Care. I think the leading private healthcare company would be a great long term option due to the quality of its global business and its positive long term outlook. The latter is thanks to the ageing populations tailwind, which is expected to drive very strong demand for healthcare services over the next couple of decades. And while trading conditions are tough right now, I believe it is worth dealing with the short term pain for the potential long term gains.

More reading

• How I would invest $50,000 into ASX shares right now
• 10 ASX 200 shares that are fit for the Queen
• Building a $100,000 portfolio with Afterpay shares and 3 other ASX companies
• What ASX shares should you invest in during a bull market?
• 3 of the best ASX 200 tech shares for your watchlist

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Altium and PUSHPAY FPO NZX. The Motley Fool Australia has recommended PUSHPAY FPO NZX and Ramsay Health Care 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 Webjet Limited (ASX: WEB) share price rocketed 8.45% last week and has opened higher today. But will the Aussie travel share continue to head higher in 2020?

Is the Webjet share price a cheap buy?

It was a good week for the S&P/ASX 200 Index (ASX: XJO) which climbed 4.22% higher to 5,998.70 points.

Webjet was just one of many ASX 200 shares to climb higher as investors piled into shares. 

There’s growing optimism about ASX travel shares like Webjet as coronavirus restrictions continue to ease. 

It looks like there will still be some tough times ahead. However, many Aussies have been cooped up and are looking towards their next getaway.

Whether that is domestically or overseas, it’s good news for the Webjet share price. The ASX travel share is still down nearly 50% in 2020 which is a healthy discount. In contrast, the S&P/ASX 200 Index has fallen just 7.67% lower at the time of writing.

That could mean the Webjet share price is a bargain. However, it’s far from certain that we’ll see a quick share price recovery in 2020.

While airlines are starting to ramp up their flight numbers, capacity is still well down on where we started the year. 

There’s also another issue: demand. Just because there’s the ability to travel, many Aussies have fallen on hard times during the pandemic. 

There could be a couple of ways this plays out for the Webjet share price. There could well be a surge in demand as people take advantage of the ability to travel.

On the other hand, we could see more Aussies saving their cash and being conservative. There could also be some skepticism about travel safety despite more options being made available.

All these unknowns say to me that the Webjet share price could be cheap but it’s a speculative play as to where the travel industry is headed.

Foolish takeaway

The Webjet share price surged higher last week and has some strong momentum behind it in this week’s trade.

However, I feel the ASX travel share is far from a certain buy and I think I’ll wait until I see August earnings figures before jumping in.

More reading

• ASX 200 Weekly Wrap: ASX bulls crash through 6,000 points
• Cheap ASX 200 retail shares to buy today
• These are the 10 most shorted ASX shares
• 3 quality ASX 200 shares to buy and hold until at least 2030
• ASX shares could be the best way to grow your wealth in 2020

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. 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 G8 Education Ltd (ASX: GEM) share price has been a strong performer this morning and is trading notably higher.

At the time of writing the childcare centre operator’s shares are up over 6% to $1.10. This compares favourably to an impressive 3.1% gain by the S&P/ASX 200 Index (ASX: XJO).

Why is the G8 Education share price outperforming?

The catalyst for this outperformance has been an announcement this morning in response to one by the Federal Government on Monday.

The latter announcement revealed that the government intends to end its free childcare scheme in July and reintroduce the Child Care Subsidy (CSS). It will also bring to an end its JobKeeper payment for workers in the sector next month.

While you might imagine this to be a negative, it won’t actually be for G8 Education. This is because there will be a three-month transition period that aims to support the early learning sector during a period of reduced occupancy levels.

According to G8’s announcement, early learning and care providers, including G8, will receive a transition payment equal to 25% of each centre’s fee levels prior to the impact of the pandemic. This is based on fees received in the fortnight prior to 1 March 2020.

Management revealed that this equates to approximately half of the amount received under the relief package, but will be paid in addition to the normal CCS and co-parent payments. Though, this transition payment is conditional on early learning and care providers maintaining average gross employment levels during this period.

Another positive is that the Federal Government will ease the activity test requirements that determine a family’s access to the CCS. Management expects this to make early learning more accessible and affordable to certain families. This includes those whose employment has been impacted due to the pandemic.

G8 Chief Executive Officer and Managing Director, Gary Carroll, commented: “The transitional arrangements announced today are welcome as they provide operators with increased flexibility to support families as the economy recovers. We look forward to continuing to engage with government and other stakeholders to ensure the right settings are in place to support our families and team members.”

What will be the financial impact?

Management notes that the revised government support packages are structured in a way that means G8 expects to be in no worse a position relative to the prior support measures.

This is even if occupancy levels become more subdued than they currently are.

Occupancy levels update.

The company also revealed that its booked occupancy rate is currently ~65%. However, physical attendance is approximately 52%, as some parents continue to choose to keep their children at home despite having a booking at a centre.

During May, physical attendance improved ~20 percentage points off the April low of ~30%.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• ASX childcare shares unlikely to receive support beyond June
• These 10 ASX 200 shares have fallen the most over the last year

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