The share market is known for its growth.
According to Vanguard, the Australian sharemarket has returned 9.7% per year over the past three decades.
That kind of return turns $10,000 into over $160,000. And that's without depositing any extra into the portfolio.
3 blistering growth shares for 2017
If you are in the sharemarket for growth (let's face it — who isn't?), there are many ways you can go about achieving a decent return.
One of the preferred methods is by investing for the long-term in growing companies. Not speculative stocks with a 'hope' and a 'dream' of becoming the next BHP Billiton Limited (ASX: BHP). But profitable and growing businesses.
Here are three 'growth' companies I'd put on my watchlist in 2017:
- Class Ltd (ASX: CL1). Class is a software business. It provides software programs to accountants and superannuation fund administers that manage client portfolios. The $355 million company recently delivered a 28% increase in half-year profit.
- Nanosonics Ltd. (ASX: NAN) also impressed the market with a half-year sales increase of 33%. The $750 million company makes a device to disinfect ultrasound probes. It has a straightforward business model: get the device in as many hospitals as possible.
- Webjet Limited (ASX: WEB) has continued to grow in recent years. Over the past five years, shares in the $1.1 billion online comparison site have rallied some 274%. While there is no guarantee that growth will continue, it has proven its ability to remain relevant in the rapidly changing world of technology.
Foolish Takeaway
Share price growth and dividend income are the two reasons most people buy shares. However, it is important to remember that what happened in the past has no bearing on what may happen in the future. Having said that, I think Class, Nanosonics and Webjet deserve a spot on investors' watchlists today.
