3 ASX growth shares to buy for 2020 and beyond

Here are 3 ASX shares to buy for 2020 and beyond.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

I firmly believe that the best way to invest in ASX shares is for the long-term.

That means we need to think about where the earnings will be headed over the next year, three years, five years and so on.

It's impossible to know what share prices will do in any week or month, but businesses that can keep grow their earning power will become more valuable over time.

That's why I'm attracted to these three ASX shares:

Altium Limited (ASX: ALU

Altium is my favourite 'growth' share on the ASX. I think it ticks all of the boxes – no debt, strong cash position, good cashflow, high and growing profit margins, a very good tailwind and a rising dividend.

The 'Internet of Things' is expected to be very beneficial for Altium's earnings in the 2020s, which could send its revenue and profit higher and higher. Altium's plan to reach 100,000 Altium Designer subscribers is exciting and Octopart could be a good profit driver over time.

Altium's valuation is the only thing stopping me from buying today, but if it drops a bit further and goes materially under $30 I may top up my holdings in light of how low interest rates are.

Costa Group Holdings Group Ltd (ASX: CGC

Costa is Australia's largest horticultural company, it grows tomatoes, mushrooms, avocadoes, berries and citrus fruit.

Agricultural businesses can deliver lumpy earnings year to year, but when the earnings are low it could be a good time to load up on shares, particularly as Costa diversifies its earnings in new locations and with more farms.

I think Costa is one of the best agricultural businesses on the ASX, which is why I'd be happy to buy shares at today's lower share price.

MFF Capital Investments Ltd (ASX: MFF

The ASX isn't the only place to find exciting growth shares. There are many good quality shares listed overseas which have very powerful economic moats. Indeed, I think it would be a mistake to miss out on those quality businesses. 

But it can hard to know where to invest with thousands of international businesses, which is why I'm happy to leave the investing to a high-performer like Chris Mackay at MFF Capital. It has been one of the highest-performer listed investment companies over the past decade and it also pays a dividend.

With its low management fee, I think MFF Capital could be one of the best ways to invest into overseas shares on the ASX.

Foolish takeaway

Costa looks like the cheapest growth option to me, but over the long-term I think the quality of Altium could shine through and therefore create the best returns by 2025, which is why it would be my pick if the markets fall a bit further.

Motley Fool contributor Tristan Harrison owns shares of Altium, COSTA GRP FPO, and Magellan Flagship Fund Ltd. The Motley Fool Australia owns shares of and has recommended COSTA GRP FPO. The Motley Fool Australia owns shares of Altium. 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 Scott Phillips.

More on Growth Shares

Person pointing at an increasing blue graph which represents a rising share price.
Growth Shares

What to buy now with the ASX at a record high

Analysts think these shares could still rise strongly from current levels.

Read more »

A young man looks at a stylised investment graph superimposed on an exterior office building backdrop.
Growth Shares

Where to invest $10,000 in ASX 200 stocks today

Analysts think these high-quality shares are in the buy zone for investors right now.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Growth Shares

Two ASX industrials shares with buy recommendations

One broker believes these growth shares are set to rise.

Read more »

Man smiling at a laptop because of a rising share price.
Growth Shares

I think these 2 exciting ASX growth shares are buys today

These stocks could deliver big returns.

Read more »

a man in a business suit and carrying a laptop stands smiling with hand in pocket outside a large office building in a city environment.
Growth Shares

Buy these 2 impressive ASX 200 shares in July: experts

Experts are bullish about these two businesses.

Read more »

A bearded man holds both arms up diagonally and points with his index fingers to the sky with a thrilled look on his face over these rising Tassal share price
Growth Shares

3 ASX 200 shares set to dominate the next decade

Let's see why these shares could be great long term picks for Aussie investors.

Read more »

A group of businesspeople clapping.
Growth Shares

3 ASX growth shares with 10-year compounding potential

Let's see which shares are being tipped as buys for growth investors.

Read more »

Woman happy and relaxed on a sofa at a shop.
Growth Shares

Are these 2 top ASX growth shares buys?

Are these high-flyers still buys?

Read more »