3 stocks to help double your portfolio in ten years

Select Harvests Limited (ASX:SHV), Magellan Financial Group Ltd (ASX:MFG) and Domino's Pizza Enterprises Ltd. (ASX:DMP) have achieved above average returns over the past few years.

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It's important that investors remain grounded and realistic in their expectations for the returns their portfolio will produce.

Generally speaking, the longer someone has been investing, the more they come to realise what is and isn't realistically achievable.

In contrast, investors new to the share market are more likely to have an over-hyped sense of achievable returns – they'll 'swing for the fences' and thereby risk 'striking out'.

In reality, even if an investor achieves only a relatively modest mid-single digit return, compounded over a long time frame, they can still set themselves up for a comfortable retirement…

In fact, to double your money within ten years only requires the achievement of a compound return of 7.2% per annum (pa).

One such stock which has absolutely blitzed this hurdle is Ramsay Health Care Limited (ASX: RHC) which has achieved a Total Shareholder Return (TSR)  – a measure of both capital gains and dividends reinvested – over the past decade of 23% pa.

With the above return parameters in mind, here are three stocks which have produced some of the highest three-year TSRs but which all have the potential to keep growing and could help investors achieve a portfolio return of at least 7.2% pa over the coming decade.

Select Harvests Limited (ASX: SHV) has provided shareholders with a TSR of 118% pa over the past three years. As a producer of nuts and health foods and with plenty of scope for further growth in Asian markets, Select Harvests' growth outlook remains robust.

The long-term earnings potential of Magellan Financial Group Ltd (ASX: MFG) is enticing given the backdrop of Australia's superannuation system. With a three-year TSR of 83% pa, shares in Magellan have been one of the best investments in recent years but importantly the stock could continue to provide adequate returns in the decade to come.

The extraordinary success of Domino's Pizza Enterprises Ltd. (ASX: DMP) expansion has surprised many and resulted in the pizza chain delivering a TSR of 78% pa for the last three years. The company's earnings growth is forecast to continue at an above-average pace thanks to its expansion into European markets which could lead to a reasonable TSR being achieved in over the next ten years.

Motley Fool contributor Tim McArthur has no position in any stocks mentioned. Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. 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 Bruce Jackson.

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