Getting rich by investing in the share market is certainly no cinch.
However, the share market is also a tried and tested way of building one's wealth – if done correctly!
While there are many different ways to increase your wealth via the stock market, one way which is attractive to many investors is by focussing on the technology (tech) sector, which is home to a number of companies with enticing business models.
What's enticing about these tech businesses is that they usually have the potential to be highly profitable, to generate significant amounts of free cash flow and have exposure to large growth opportunities.
Past performance of some current tech leaders highlights the attractive dynamics which can be present in the tech sector.
Consider, for example REA Group Limited (ASX: REA). It has successfully grown from a small online start-up of real estate classifieds servicing the domestic market to holding not just a dominant position within Australia, but also significant operations in numerous foreign marketplaces too.
In response to REA's growing profitability and entrenched leadership position, the group's share price has risen rapidly.
In the past decade, REA's share price has increased from around $3.60 to $56 – a gain of 1,370%!
So which ASX tech shares could be the future stars? Here are three that in my opinion are worth keeping an eye on…
Aconex Ltd (ASX: ACX) is a leading provider of software to the construction industry which allows owners, contractors and project teams to all connect, share and communicate via the same platform.
WiseTech Global Ltd (ASX: WTC) is a provider of software solutions to the logistics industry. The group's core product CargoWise boasts a global customer base.
XERO FPO NZX (ASX: XRO) appears to be in the process of carving out a leading market position in the cloud accounting space.
