The next decade is a very interesting period for ASX share investing. If you think long-term, I believe there are some great potential investments.
If I were looking to invest in businesses for 10 years, these are three ASX growth shares that I’d pick:
Altium Limited (ASX: ALU)
Altium is one of the world leaders when it comes to electronic PCB software design. It has a really high quality list of clients like Tesla, Space X and Microsoft.
The company is planning to become the global leader over the next five years and it’s making a number of investments to make that happen, including the cloud software offering of Altium 365.
Altium’s share price has been going backwards in recent months because of the impacts of COVID-19 and the economic side effects. But I believe this offers a good long term opportunity to buy shares of a business with a good balance sheet and cashflow.
WCM Global Growth Ltd (ASX: WQG)
I’m a fan of how the WCM investment team go about finding opportunities and what they look for. It’s not about finding the latest hot stocks, but looking for businesses with growing competitive advantages, as well as management that are focused on continuing that strength. That’s a big reason why I like this listed investment company (LIC).
Some active managers can outperform and add a lot of value over time. But there’s a risk if that success is due to just one person. However, WCM seems to be about the process and the team, which is why I’d be more comfortable investing in the LIC for the long term.
A few of the portfolio names include MercadoLibre, Taiwan Semiconductor, Shopify, Stryker, Tencent, West Pharmaceuticals and LVMH.
Since inception in June 2017, the LIC’s portfolio has returned (after management fees) 19.26% per annum.
Kogan.com Ltd (ASX: KGN)
Whilst Kogan.com may have its critics, I like the steps that the company has taken and is taking to become a strong online retailer in Australia (and now New Zealand). The more it can sell, the more operating leverage that it can generate and achieve higher margins. Also, the more customers it can sell to, the higher chance there is that Kogan.com’s other offerings – such as insurance – grow to good scale.
I’m confident about Kogan.com’s long-term because customers always want cheap prices and we are steadily buying more things online, with Kogan.com one of the leaders in online retailing in Australia.
One of the main reasons I like Kogan.com is the valuation – using CommSec numbers, it’s priced at 23x FY21’s estimated earnings. It also has a projected fully franked dividend yield of 3%.
