A 10-bagger share increases in value by at least 10 times its purchase price. At the moment everyone is pretty excited about the Afterpay Ltd (ASX: APT) share price. Yesterday alone, it rose by 8.96% to new highs. In fact, if you had purchased Afterpay on its IPO, you would have seen your investment increase in value more than 15 times. At the time of writing, the Afterpay share price had a compound annual growth rate (CAGR) of 285.5% in just under 3 years. 

Unfortunately, most of us aren’t smart enough or lucky enough to pick great shares at IPO. The 5 ASX 200 shares below would all have turned $10,000 into at least $100,000 over the past decade. Many of them had listed way before 2010. 

5 top 10-bagger shares

Jumbo Interactive Ltd (ASX: JIN) is a lottery retailer in Australia, selling games under agreement with government licensed lottery operator Tatts Group. Unlike previous lottery resellers, Jumbo Interactive sells via the internet. The company considers itself to be a software engineering company first and foremost. The company became a 10-bagger share when it opened its software to be licensed by lottery sellers globally. Since 2010, its share price has grown just over 31 times. 

Appen Ltd (ASX: APX) provides or improves data used for the development of machine learning and artificial intelligence products. It works with some of the world’s leading technology companies. This has included working with Apple Inc. on its voice assistant “Siri”. Since listing in 2015, this company has grown over 54 times. 

Magellan Financial Group Ltd (ASX: MFG) is the definition of compound growth. Smart investing in US growth shares has given this company a massive CAGR of 52.4% over the past 10 years. Its share price today is 66.6 times larger than on 1 January 2010. An investment of $10,000 at that time would now be worth ~$656,000. It holds significant stakes in some of the worlds largest companies and has done so since very early in their growth. These have included Apple, Facebook, Alphabet (Google) and business software giant SAP. 

Altium Limited (ASX: ALU) is, I think, one of the truly spectacular performers on the ASX across many areas. This company is not a 10-bagger share, it is a 100-bagger. It sells PC-based electronics design software for engineers who design printed circuit boards. Over the 10 years in question, it has achieved compound annual growth rates (CAGR) across sales, earnings per share, and equity growth well in excess of 10%. With a share price CAGR of 65%, Altium would have grown a 2010 investment just over 146 times.

The big one

The dominant share across the past decade has of course been gold miner Northern Star Resources Ltd (ASX: NST). If you had invested $10,000 with Northern Star on 1 January 2010 it would be worth over $4,700,000 today (at the time of writing). A growth rate of 479 times is the stuff that dreams are made of. The current high gold price has helped in during 2020. Still, most of its share price growth happened between 2014 and February, 2020 – a period entirely pre-pandemic. 

The company’s secret formula has been to buy well, increase the gold reserves, increase the production and profitability, and divest itself of poorly performing assets quickly. 

Foolish takeaway

This decade’s 10-bagger shares are likely to have many characteristics of these companies. They will likely be technology focused or technology adaptors and productive users of capital, consistently improving revenue and profits. I do not think that many of these companies have finished their growth stages yet.

For example, Northern Star clearly has global domination in its sights. Altium has a 10-year track record of excellent growth with no signs of stopping. And Magellan is run by one of the most respected investors the nation has ever produced. 

More reading

• Why Afterpay and these ASX shares just zoomed to 52-week highs
• ASX 200 jumped higher, rises more than 2%
• 3 stellar ASX tech shares to buy and hold for decades
• Top brokers name the latest ASX 200 stocks to sell today
• These ASX 200 share prices were cut in half. Where are they now?

Daryl Mather has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Jumbo Interactive Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO, Altium, and Appen Ltd. The Motley Fool Australia has recommended Jumbo Interactive 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.

The post 5 ASX 200 10-bagger shares of the decade appeared first on Motley Fool Australia.

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It’s been a wild start to 2020 for Webjet Limited (ASX: WEB) and other ASX travel shares amid the coronavirus pandemic. Countries have shutdown incoming air traffic while even domestic borders remain shut to most travellers.

That’s bad for the travel business. Airlines are struggling and it makes sense that many of the other industry players are too. 

But, the Webjet and Flight Centre Travel Group Ltd (ASX: FLT) share prices both rocketed higher yesterday. You might be wondering if it’s too early or too late to buy ASX travel shares. Here’s how I see the current market valuations playing out in 2020.

What’s going on with ASX travel shares?

It’s pretty obvious why the Aussie travel shares got sold down by investors in February and March. The situation looked pretty bleak for the industry for most of 2020, if not beyond.

But what’s causing double-digit share price moves right now? Webjet shares closed yesterday 15.56% higher at $4.16 per share while Flight Centre jumped 15.23% to $13.01 per share.

There were no major announcements from either ASX travel share on Monday. However, there is intense speculation that a trans-Tasman travel bubble could happen sooner rather than later.

That means these booking groups, as well as the airlines like Air New Zealand Limited (ASX: AIZ), could benefit from increased traffic.

On top of that, domestic travel restrictions are beginning to ease which could be a much-needed earnings boost for Webjet and Flight Centre.

Is it too early to buy Webjet shares?

Many investors are wary of false positives in the current market. While the ASX travel share rocketed higher yesterday, I’d be thinking if it’s too early rather than too late to buy.

Personally, I think it’s still to early to buy Webjet shares. There’s plenty of uncertainty facing the travel industry and no one knows what 2020 or 2021 look like in terms of traffic.

Even if borders do start to open, many people have lost their jobs and may not be able to afford to travel, or be comfortable with travelling.

That means the current valuation is a little too high for my liking. However, Webjet shares could be back in the buy zone if things start to get a little clearer this year.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• ASX 200 jumped higher, rises more than 2%
• These ASX 200 share prices were cut in half. Where are they now?
• Why Flight Centre and Webjet shares are zooming higher today
• ASX 200 up 1.7%: Flight Centre and Webjet rocket, Afterpay hits record high

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. The Motley Fool Australia has recommended Flight Centre Travel Group 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.

The post Is it too early to buy Webjet shares? appeared first on Motley Fool Australia.

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The Australian share market started the week on an extremely positive note on Monday. This led to a good number of shares charging notably higher.

Some shares climbed more than most and a few even managed to hit 52-week highs or better.

Here’s why these ASX shares are flying high right now:

Afterpay Ltd (ASX: APT)

The Afterpay share price continued its positive run and raced to a record high of $49.00 on Monday. Investors have been fighting to get hold of the payments company’s shares in recent weeks for a number of reasons. These include its very strong performance during the third quarter, WeChat owner Tencent Holdings becoming a substantial holder, explosive active customer growth in the U.S. market, and its upcoming addition to the MSCI Australia index.

Reject Shop Ltd (ASX: TRS)

The Reject Shop share price hit a 52-week high of $4.91 yesterday. The discount retailer’s shares have been strong performers over the last few weeks and are now up over 63% since this time last month. One of the catalysts for this appears to have been a broker note out of Goldman Sachs. At the start of the month the broker upgraded its shares from a sell rating to a buy rating with a $4.75 price target. It spoke positively about its turnaround story with a new executive team, its robust balance sheet, and the potential for material improvements in efficiencies in labour, rent, and stock turn.

Whispir Ltd (ASX: WSP)

The Whispir share price hit a record high of $2.80 on Monday. Investors have been buying the communications workflow platform provider’s shares in recent months due to its strong performance during the pandemic. The work from home initiative has been driving increased demand for its offering, which led to solid Annualised Recurring Revenue (ARR) growth during the third quarter. Whispir posted a 10.4% quarter on quarter jump in its ARR to $40.5 million. This was the result of a record addition of 49 net new customers and increased platform use by existing customers.

More reading

• 5 ASX 200 10-bagger shares of the decade
• ASX 200 jumped higher, rises more than 2%
• Top brokers name the latest ASX 200 stocks to sell today
• These ASX 200 share prices were cut in half. Where are they now?
• The Afterpay share price just hit a new record high: Should you invest?

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 Whispir Ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Whispir 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.

The post Why Afterpay and these ASX shares just zoomed to 52-week highs appeared first on Motley Fool Australia.

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