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The Catapult Group International Ltd (ASX: CAT) share price has been a positive performer on Thursday following the release of an announcement.

In early trade the sports analytics and wearables company’s shares are up 1.5% to $2.24.

What did Catapult announce?

This morning Catapult announced its second launch of new software solutions in as many weeks. Last week the company launched new solutions for NFL teams. You can read about those here.

Today, Catapult revealed that it is launching a dedicated athlete feedback and wellness management software solution, Catapult Form.

This solution provides coaches with an end-to-end view of an athlete’s performance to ensure psychological and physical performance are always aligned.

Management notes that Catapult Form is the only dedicated wellness management solution for efficiently and intuitively capturing athlete feedback in elite team sport.

It feels this is particularly important and timely as today’s COVID-19 environment is forcing many teams to track specific symptoms, possible contacts, and emotional state on a daily basis.

The solution will be accessible as a new feature-set within Catapult AMS, which has helped centralise technical, physical, medical, and wellness data in one platform.

Innovation.

Catapult’s Senior Vice President of Product, Yana Bulva, revealed that she is pleased with the innovation being shown, particularly with a solution which embodies customer obsession during a difficult time.

Bulva commented: “The current COVID situation has driven sports teams across the globe to seek solutions for collecting better quality athlete data to protect health and safety.”

 “We are excited to continue the evolution of our SaaS performance and health solutions for customers, offering teams the unique opportunity to combine our wearable data with subjective data collected via Catapult Form. This enables a custom plan for athletes that understands where they are physically and mentally, at any point in time,” she added.

More reading

• Here’s what is driving the Catapult (ASX:CAT) share price higher today

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 and recommends Catapult Group International Ltd. The Motley Fool Australia has recommended Catapult Group International 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 Audinate Group Ltd (ASX: AD8) share price is surging higher on Thursday morning.

At the time of writing the digital audio-visual networking technologies provider’s shares are up 6.5% to $6.35.

Why is the Audinate share price surging higher?

This morning Audinate released its annual general meeting presentation and an update on its performance during the first quarter of FY 2021.

According to the release, Audinate has experienced a steady improvement in trading conditions since May.

However, it does note that customer and market segments have been impacted differently.

For example, the company is seeing good momentum in corporate conferencing and higher education, but challenging conditions in live sound and large events because of the pandemic.

This led to Audinate recording unaudited revenue of US$5.2 million during the first quarter.

No sales figure is available for the prior corresponding period. However, for the first half of FY 2020, Audinate delivered revenue of A$16.1 million (US$11.5 million). So this appears to indicate that its revenue is starting to normalise to pre-pandemic levels.

Management advised that selected products are experiencing strong growth, relative to FY 2020. This includes Adaptors, Ultimo, Broadway, and Retail Software. Though, Brooklyn revenue is down on the prior corresponding period, which reflects its exposure to live sound.

In respect to earnings, Audinate reported first quarter unaudited earnings before interest, tax, depreciation and amortisation (EBITDA) of A$0.3 million. This compares to FY 2020 first half EBITDA of A$1.87 million.

What now?

Positively, the future is looking brighter for Audinate, with management noting that its sales backlog is now back to pre-COVID-19 levels.

The company is also intending to prudently return to investing for growth. It expects to add around 10 roles globally over FY 2021, with further incremental operating expenditure expected to amount to around A$1.5 million over FY 2020.

Given the uncertainty caused by the pandemic, no guidance has been given for FY 2021.

More reading

• Top ASX tech shares to buy in October 2020
• 3 exciting small cap ASX shares that ought to be on your watchlist
• Leading brokers name 3 ASX shares to buy today
• Top ASX growth shares to buy in October 2020
• 3 stellar mid cap ASX tech shares to buy for the long term

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 AUDINATEGL FPO. The Motley Fool Australia has recommended AUDINATEGL 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.

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There is a rule of thumb in investing called the rule of 72. This is a simple algorithm to calculate the time it will take to double an investment. For example, if there is an ASX share growing at, say, 10%. Then dividing 72 by 10 tells you it will double in 7.2 years. You can replicate this the long way in excel to prove it works. This illustrates the power of compound interest and should be a part of any investment decision.

The great caveat here is, of course, that the company will continue to grow at this rate going forward? Therefore, as the future is notoriously hard to predict, we have to use past performance plus a judgement of the future conditions for growth.

ASX shares in investment companies

Magellan Financial Group Ltd (ASX: MFG) is a large investment company on the ASX, led by a fund manager that I personally hold in high esteem. Hamish Douglass has achieved astounding results over the past decade. For instance, he has managed to grow the earnings per share (EPS) at compound annual growth rate (CAGR) of 50.5%. 

Over a 10-year period, this ASX share has achieved a share price CAGR of 54.3% up to yesterday. At this rate, any investment today, using the rule of 72, would double in under 2 years. However, will growth stay the same? 

Clearly, no one really knows. However, all key personnel remain in place, and the company has embarked on a growth strategy via the creation of a new Australian investment bank. Personally, I think that growth will remain high. Nonetheless, even if it were to falter for a year or two I am still confident this company would double its share price over a 5-year period. 

Insurance and financial services

AUB Group Ltd (ASX: AUB) is a mid cap insurance company that has outperformed every other insurance ASX share in year to date trading. In fact, the company has seen its share price rise by 46.2% since 1 January. This is despite the coronavirus pandemic. The company’s business model is that of a distributed broking and underwriting platform. Whereby, there are a range of stand alone companies responsible for niche industry sectors. What’s more, the FY20 result was the largest increase in underlying net profit after tax (NPAT) since 2013. 

The company has achieved a share price CAGR of 14.3% over an 11-year period. Again, using the rule of 72, this means the initial investment would double within 5 years if share price growth continued. Given the consistency of performance and the unwavering direction of travel of this ASX share, I believe the growth rate will continue.

Foolish takeaway

The rule of 72 is a good guide to how long it will take to double an investment based on a consistent level of growth. Like many other metrics it doesn’t provide you with the answer, it just allows you to ask more sophisticated questions. For example, what would prevent an ASX share like AUB Group from achieving its CAGR of 14.3%? Moreover, is there still enough room in its addressable market for it to continue to grow at this rate?

Personally, I am confident that the two companies above will continue with a level of share price growth high enough to double an investment within 5 years. 

More reading

• 3 ASX 200 growth shares to buy today
• Why I’d watch the Platinum (ASX:PTM) share price this week
• 2 leading ASX 200 shares to buy for growth and income
• 3 unique ASX shares I’d buy and hold forever
• Why growth investors still have a lot to like about the Magellan (ASX:MFG) share price

Motley Fool contributor Daryl Mather 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Billionaire investor Ron Baron thinks the sky’s the limit when it comes to Tesla Inc‘s (NASDAQ: TSLA) valuation. He sees the electric vehicle (EV) company growing fivefold over the next decade as its car and battery businesses soar.

In an interview with CNBC on Wednesday morning, the founder of investment firm Baron Capital Management said: “I’ve said for a long time I thought it was going to be $1 [trillion] to $2 trillion. With what developments have taken place recently, I think $2 trillion is the right number. So I think it’s five times from here.”

All revved up

Baron says Tesla’s valuation has grown 10 times in the past two to three years, but it’s only recently that the stock has caught up. 

He believes car sales will continue to boom, eventually reaching 10 million a year. And he says that the company has an “unbelievable” opportunity in batteries, which he suggests could lead to Tesla generating revenue of anywhere between $750 billion to $1 trillion in the next decade. Its valuation, therefore, could triple or quintuple in that time.

It’s an ambitious forecast; last year, the company sold 367,000 Teslas. But Musk himself has set a sales goal of 20 million cars a year by 2027.

Analysts at Deloitte, though, forecast EV sales will reach 31 million in 2030, meaning Tesla would account for one-third to two-thirds of all EVs sold. 

That seems unrealistic, but if Tesla comes anywhere close to achieving either 10 million or 20 million cars a year, the market could respond in kind. And adding in the battery business, as Baron suggests, could make his valuation-expansion multiples seem not so far afield.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• Short-sellers are stepping up their attack on these ASX stocks
• Could these US-based ASX lithium shares land a deal with Tesla (NASDAQ:TSLA)? 
• ASX investors were buying Tesla (NASDAQ:TSLA) and Apple (NASDAQ:AAPL) shares last week
• Piedmont Lithium (ASX:PLL) share price rockets 83% higher on Tesla deal
• Why Tesla’s record vehicle deliveries sound better than analysts might think

Rich Duprey 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 Tesla. 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Exchange-traded funds (ETFs) have exploded in popularity over the past few years.

So there are now all sorts of funds that represent different indices, sectors, investment strategies and assets.

Investment services provider BetaShares recently extracted ASX data from 1 January to 30 September to work out which ETFs attracted the most amount of investor money.

And the analysis makes for fascinating reading.

Overwhelmingly, two asset types dominated investor money: Australian shares and international shares. They took in around $4.1 billion and $3.5 billion respectively.

Gold was a distant third with about $1.1 billion. Fixed income ETFs weren’t too far behind in fourth place.

“Just because an asset class is receiving large inflows does not necessarily mean it will perform well,” said BetaShares Associate Director, Michael Brown.

“It is, nonetheless, always interesting to observe where the money is flowing into and out of, to get a sense of sentiment within the overall market, and what is resonating with different types of investors.”

At the end of the spectrum, currency ETFs were the only category to experience negative net investment. Geared long, commodities, Australian listed property and cash all recorded positive flows but were the least popular.

Australian shares ETFs breakdown

ETFs that represented Australian equities were then broken down to subcategories — broad, sector-based, high yield, large cap and small cap.

“Broad market exposures dominated, with just over $3.5 billion in net flows,” said Brown.

“Broad market exposures are generally made up of very liquid, large companies that trade on the ASX.”

He added that there might be 3 reasons why broad ETFs were so popular:

1. Many active managers have underperformed against their benchmarks this year
2. Investors reckon there’s value within Australian shares
3. Broad-exposure funds have less stock-specific risk than directly picking shares

International shares ETFs breakdown

While developed world shares were easily the most popular, attracting almost $1.7 billion, sector-based ETFs fared better than in Australian equities.

Sector-based international ETFs brought in the second most amount of investor money, raking in just under $1 billion.

This is largely because of the United States technology sector’s stunning rally this year.

“ETFs providing exposure to the NASDAQ-100 (NASDAQ: NDX) took the lion’s share, with the BetaShares Nasdaq 100 ETF (ASX: NDQ) and the BetaShares Nasdaq 100 ETF – Currency Hedged (ASX: HNDQ) attracting ~$380 million in new money between them,” Brown said.

Despite a correction in September, the Nasdaq Composite (NASDAQ: .IXIC) has gained more than 70% since the COVID-19 trough in March.

ETFs for gold, fixed income and ethical investing

Fortunately for investors in the year of the coronavirus, it’s easy to invest in gold through ETFs.

“Given recent market volatility, and considering gold has traditionally been viewed as a ‘safe-haven’ asset, we have previously written about why there are still plenty of reasons to consider an investment in gold,” Brown said.

“Gold has seen a consistent and high level of total flows this year.”

Fixed income ETFs have been popular for similarly defensive reasons.

“For yield-hungry investors, we saw hybrids exposure obtain a large share of inflows with over $190 million,” said Brown.

“For more defensive investors, we saw strong flows into core Aussie and Global bond indices, with Australian Government bonds a standout.”

More than $900 million has also flowed into ethical investment ETFs this year, showing social responsibility ascending in priority for retail investors.

Brown said market capitalisation of ethical ETFs has increased more than 800% since December 2016.

“Since the start of the pandemic, the knock-on effects of lockdown, including restricted movements of people and the shutdown of industrial activity, have had significant impacts on global carbon emissions and the way we work,” said Brown.

“Now, as we consider how best to shape the economy coming out of the crisis, ESG considerations are again coming to the forefront of investment decisions.”

More reading

• How to position yourself for the next big surge in technology shares
• Why it is important to diversify your ASX portfolio and how you can do it
• 3 five-star ASX shares to buy next week
• 3 ASX shares to buy in a US election selloff
• Easily diversify your portfolio by investing in these ETFs

Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended BETANASDAQ ETF UNITS. 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 Redbubble Ltd (ASX: RBL) share price will be one to watch on Thursday following the release of its first quarter update.

How did Redbubble perform in the first quarter?

Redbubble has started FY 2021 in a very positive fashion, with further strong growth being delivered across the business.

For the three months ended 30 September, Redbubble reported Marketplace Revenue of $147.5 million, up 116% (122% on a constant currency basis) on the prior corresponding period.

Things were even better for its gross profit, which increased 149% (157% in constant currency) to $64.5 million for the quarter.

This ultimately led to Redbubble delivering first quarter earnings before interest and tax (EBIT) of $22.1 million, compared to a loss before interest and tax of $1.5 million a year earlier.

What were the drivers of its growth?

Management advised that the company saw a continuation of strong demand across products and geographies during the quarter.

This was particularly the case in its largest market – North America. First quarter sales in the region more than doubled during the quarter. This is a big positive given that the North American market accounts for 71% of its gross transaction value.

Sales were also very strong in the ANZ and UK markets, growing 124% and 122% over the prior corresponding period.

In respect to products, the accessories category was the star of the show. It reported a 562% increase in accessories sales during the first quarter. This appears to have been driven partly by increasing demand for fashionable face masks. Accessories now account for 27% of sales on its marketplace.

What’s next?

The company advised that it is continuing to monitor online sales trends and remains mindful of external uncertainties that lie ahead.

It intends to focus on four key initiatives to generate ongoing profitable growth:

1) Artist acquisition, activation and retention; 2) User acquisition and transaction optimisation, 3) Customer understanding, loyalty and brand building; 4) Further physical product and fulfilment network expansion.

Redbubble CEO, Martin Hosking, commented: “The strategic priority for the group now is to ensure we extend the market leadership we have established. We intend to invest in the customer experience to improve loyalty and retention and ensure long-term higher levels of growth. The company has the resources to undertake the anticipated investments and the margin structure to ensure it can do so while remaining profitable.”

More reading

• 3 unstoppable ASX shares to buy with $3,000
• The Redbubble (ASX:RBL) share price is up 320% in 2020: Can it go higher?
• 3 ASX tech shares to buy and hold for the next decade
• Top ASX Stock Picks for October 2020
• Buying these 3 ASX shares could change your life

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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The Corporate Travel Management Ltd (ASX: CTD) share price is an interesting proposition right now. ASX travel shares including Webjet Limited (ASX: WEB) were hammered on Wednesday but Corporate Travel’s value edged higher.

That’s symptomatic of what I think is Corporate Travel’s edge in the current market. Here are a few reasons I like the ASX travel share at $17.74 per share today.

Aggressive growth strategy

Corporate Travel has gone from the hunted to the hunter in the space of a few months. When the Corporate Travel share price slumped in the March bear market, distressed investors would have been eyeing off the travel group.

However, Corporate Travel’s fortunes and financial position have come full circle. The ASX travel group has restocked its balance sheet with a $375 million equity raise and announced the acquisition of United States-based Travel & Transport (T&T).

That to me sends a strong signal that Corporate Travel is back and looking to buy cheap assets to boost growth going forward.

Diversified international operations

One thing I like about Corporate Travel is its global diversification. Now, amidst the coronavirus pandemic, this is something of a double-edged sword.

Corporate Travel makes approximately 80% of its revenue offshore with key markets in the US and Europe. A second wave of COVID-19 doesn’t bode well in the short-term, but I think it does create opportunities.

Similar to the T&T opportunity, Corporate Travel has the expertise and experience to manage international assets. That could create some exciting operational opportunities in these markets and boost the Corporate Travel share price in 2021.

Strong earnings base is good for the Corporate Travel share price

Corporate Travel has an impressive online profile with the vast majority of customer transactions now completed online. That is good news given restrictions on bricks and mortar retail right now and travel agent store closures.

On top of that, I think the demand side of the equation is better for Corporate Travel than other ASX travel shares. As the name suggests, business travel is a key component of the company’s earnings. I think that’s a positive for the Corporate Travel share price in the current climate.

Business travel may be more resilient during COVID-19 compared to the leisure segment which could see restrictions and weaker demand hit the bottom line over a longer period of time.

Foolish takeaway

The Corporate Travel share price is not everyone’s cup of tea. There is sure to be more volatility on the way thanks to COVID-19 and government restrictions.

However, I think the ASX travel share could be a strong buy for long-term investors who believe in the acquisition and efficiency story that management is telling right now.

More reading

• Brokers name 3 ASX shares to buy right now
• ASX 200 sinks 2%, Corporate Travel (ASX:CTD) soars 8%
• Top brokers name 3 ASX shares to buy today
• Why Corp Travel Management, EOS, Evolution, & Recce shares are charging higher
• ASX 200 down 1.1%: Corp Travel Management surges higher, gold miners rise, Santos given approval

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited and 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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Although the Australian share market ended its winning streak on Wednesday, that didn’t stop a number of shares from continuing their positive runs.

In fact, a few shares even managed to climb so much they hit record highs.

Two ASX shares which achieved this feat are listed below. Here’s why they are flying high right now:

Afterpay Ltd (ASX: APT)

The Afterpay share price jumped to a new record high of $98.68 on Wednesday. Investors have been buying the buy now pay later provider’s shares this year after it delivered further explosive sales and customer growth in FY 2020. This was driven by the accelerating shift to online shopping, its international expansion, and the growing popularity of the payment method with both consumers and retailers.

Yesterday’s rise, however, was driven by a positive update on its dealings with AUSTRAC in relation to its Anti-Money Laundering and Counter-Terrorism Financing audit. After considering the final audit report and Afterpay’s response to the findings, AUSTRAC has decided it will not be taking any further regulatory action.

Kogan.com Ltd (ASX: KGN)

The Kogan share price stormed to a new record high of $24.45 yesterday. When the ecommerce company’s shares hit that level, it meant they were up a massive 227% since the start of the year. As with Afterpay, the accelerating shift to online shopping has been the catalyst for this strong gain. The pandemic has sent millions of consumers online for their shopping, many for the first time, leading to Kogan benefiting greatly.

The good news for Kogan is that even with retail stores now open, it hasn’t slowed its growth. Kogan recently revealed that it added 152,000 new customers to its platform during August. This was a record monthly increase and took its total customers to 2,461,000. This led to both its sales and earnings more than doubling during the month.

More reading

• How top ASX tech shares like Afterpay (ASX:APT) have performed in 2020
• ASX 200 finishes lower, Afterpay (ASX:APT) shares rise
• My top 5 ASX growth shares to buy right now
• Why the Afterpay Ltd (ASX:APT) share price broke its record high today
• The niche ASX shares critical to fuelling the tech boom

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 Kogan.com ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Kogan.com 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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ASX tech shares have been on fire in 2020. The recently launched S&P/ASX All Technology Index (ASX: XTX) has been climbing higher after adding $33 billion of value in just three months.

Here’s how some of the top tech shares within that index have performed in the year to date.

Which shares are in the index?

The total market capitalisation of the index is over $140 billion with 28 listed tech ‘unicorns’, those with above $1 billion market cap, as at 3 September 2020. The minimum market cap requirement for inclusion currently sits at $120 million.

In terms of country of origin, there are 48 from Australia with the United States (5), New Zealand (3), Ireland (1) and Israel (1) also represented.

Unsurprisingly, the WAAAX technology shares lead the list with all 5 companies making the top 10 by market capitalisation. 

Afterpay Ltd (ASX: APT) is the leader as at 3 September 2020 with a $27.3 billion market cap while Appen Ltd (ASX: APX) rounds out the top 10 at $4.4 billion.

How have the top shares performed?

The list of constituents reads a bit like a who’s who of ASX outperformers. The Appen and Afterpay share prices have rocketed 62.7% and 213.7% year to date, respectively.

Apart from Afterpay, Appen and the like, there are some more loosely-defined ASX tech shares included.

An example is REA Group Limited (ASX: REA), which has seen its share price rocket 17.2% higher in 2020. Real estate listings have been strong despite the coronavirus pandemic which has helped the media organisation maintain its earnings.

Fellow ASX tech share SEEK Limited (ASX: SEK) has been under pressure but seen a rebound thanks to the Federal Budget. Last Tuesday’s budget showed strong support to boost employment which is good news for Seek’s FY21 earnings.

Computershare Limited (ASX: CPU) shares have fallen 22.0% this year while the NextDC Ltd (ASX: NXT) share price has rocketed 108.3% higher in 2020.

Foolish takeaway

ASX tech shares have been on fire in 2020 as investors have looked for growth opportunities. That strong momentum could be good news for shareholders looking to ride market ups and downs in 2021.

More reading

• This is how you can become a millionaire with ASX shares
• ASX 200 finishes lower, Afterpay (ASX:APT) shares rise
• Are Seek (ASX: SEK) shares a good pick for long term investors?
• 4 ASX shares rated as strong buys by brokers
• My top 5 ASX growth shares to buy right now

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO and Appen Ltd. The Motley Fool Australia has recommended REA Group Limited and 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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If you have $50,000 in a savings account and no immediate use for it, I would suggest you consider investing it into the share market.

This is because if you have a long enough investment time horizon, the share market could turn these funds into a life-changing sum.

As of the end of June, the Australian share market had provided investors with an average annual return of 8.7% over the last 30 years.

This means that if you had invested these funds into the ASX in June 1990 and earned the market return, they would now be worth a sizeable $610,000.

If you can then earn the same return for a further six years, the power of compounding will turn these funds into a cool million dollars.

What about the future?

While nothing is certain, I feel confident the share market will generate a similar return over the next 30 years.

So, if you’re happy with this level return, then you could invest these funds into an exchange traded fund (ETF) that tracks the S&P/ASX 200 Index (ASX: XJO). The BetaShares Australia 200 ETF (ASX: A200) allows investors to do this.

There is also the Vanguard Australian Shares Index ETF (ASX: VAS) to consider. This ETF gives investors exposure to the 300 shares listed on the S&P/ASX 300 index.

But you don’t have to settle for that. The ASX 200’s 8.7% per annum return over the last 30 years is an average. This means some shares underperform it and others beat it.

If you’re looking for future market beaters, then I would suggest you look at investing in the likes of electronic design software company Altium Limited (ASX: ALU), artificial intelligence services provider Appen Ltd (ASX: APX), and biotherapeutics giant CSL Limited (ASX: CSL).

I believe these companies are well-positioned to grow their earnings at a strong rate over the next decade and beyond. This could lead to their shares generating market-beating returns, turning that $50,000 into something significantly larger.

More reading

• 2 blockbuster blue chip ASX shares to buy
• ASX 200 finishes lower, Afterpay (ASX:APT) shares rise
• Here’s why Medical Developments (ASX: MVP) share price has soared 12% today
• My top 5 ASX growth shares to buy right now
• ASX 200 flat: Bank of Queensland impresses, CSL guidance update, AUSTRAC clears Afterpay

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 and recommends Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia owns shares of Appen 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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