I think that there are some high-quality ASX growth shares that I’d happily buy for my portfolio.
Businesses that are generating growth are the ones that are increasing their value for investors at a faster rate.
Adore Beauty Group Ltd (ASX: ABY)
Adore Beauty is one of the best e-commerce ASX shares in my opinion.
It sells beauty products completely online from hundreds of brands.
Selling online can build a snowball of growth. Once the business has the website and distribution warehouse set up, a pleasing amount of the new gross profit can turn into profit at the EBITDA (EBITDA explained) and net profit after tax (NPAT) levels of the financials.
Adore Beauty is growing revenue at a fast pace and also investing for growth to capitalise on the large opportunity of the fast-growing (online) beauty market.
Once the ASX growth share is larger, it’s expecting to achieve growing margins in the medium-term as it benefits from the scale advantages.
Being the number one in beauty e-commerce will also be a helpful self-fulfilling cycle of winning more customers, selling more brands and getting customers to spend more each year.
Growth continues into FY22, with the first quarter showing revenue rising by 25% to $63.8 million. Active customers rose 24% to 874,000. It said there was strong customer retention with returning customer growth of 63% year on year.
WCM Quality Global Growth Fund (ASX: WCMQ)
This is an exchange-traded fund (ETF) which is managed by the California-based WCM Investment Management.
WCM looks to invest in global, quality businesses that have growing economic moats and a strong culture to enable that growing competitive advantage.
The ASX growth share’s portfolio doesn’t tend to change that much. At the latest disclosure for September 2021, its largest 10 holdings were: Stryker, Shopify, Thermo Fisher Scientific, West Pharmaceutical Services, Sherwin-Williams, LVMH, First Republic Bank, Old Dominion Freight Line, ServiceNow and Amphenol.
Since August 2018, this ETF has produced net returns of an average of 20.4% per year, comfortably beating the global share benchmark by around 7.5% per year. However, past performance is no guarantee of future results.
