Turning $50,000 into over $1 million in 10 years certainly sounds impossible, but it isn't if you pick the right shares. In fact, there are a number of tech shares on the Australian Stock Exchange that would have made you a millionaire after a $50,000 investment 10 years ago.
Take for example Hansen Technologies Limited (ASX: HSN). It develops and supports customer care and billing solutions for a great number of energy, pay TV, and telecommunications service providers across the world. $50,000 invested in its shares 10 years ago would be worth $2.9 million today following an average 10-year total return of 50.2% per year.
Then there is Netcomm Wireless Ltd (ASX: NTC). It has provided shareholders with an average total return in excess of 41% over the last 10 years. This would have turned your $50,000 investment into almost $1.6 million.
Well that was the last 10 years, so let's now look ahead at the next decade.
Finding shares like these two is by no means easy, but I believe there are at least three tech shares that could provide shareholders with similar outstanding returns in the future.
Altium Limited (ASX: ALU)
Altium is a company set to profit on the back of the growth of the internet of things market which Cisco predicts will be worth US$14.4 trillion by 2022. Altium enables companies to design printed circuit boards to be used in connected devices. Thanks to the expected growth of its addressable market I believe there is every chance Altium will deliver solid results that produce strong returns for shareholders over the next 10 years.
iSentia Group Ltd (ASX: ISD)
It may not be the most well-known share on the ASX, but it certainly could be one day. Since starting out as an Australian family business over 30 years ago, iSentia has become a global leader in delivering crucial business intelligence. So much so its award-winning software is now being used by multinational companies such as Starbucks, Disney, Visa, and Microsoft. According to CommSec, analysts expect iSentia to grow its earnings by 40% per annum through to at least FY 2018. If the company delivers on these expectations then I would expect to see strong share price gains ahead.
Hansen Technologies Limited (ASX: HSN)
Finally, Hansen Technologies Limited has done it before, and I believe it could do it again. What I like most about Hansen is the way it creates long-standing relationships with its clients. In its reports it revealed that it has 30 pay TV operators on its books with an average tenure of 11 years. I believe this gives the company a great base to grow its earnings from, and expect to see it continue to provide strong returns for its shareholders in the next decade.
There is a fourth company as well, which I believe could turn $50,000 into over $1 million in the next decade. I feel the stage is set for this exciting tech share to rocket in the near future.
