3 hot ASX shares to buy when you're young

I think young investors ought to consider long term investment in Afterpay Ltd (ASX:APT) and these ASX shares…

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I believe the easiest way to create wealth is by investing regularly and with a long term view.

This is because by doing things this way, you can take advantage of the magical power of compound interest.

But which shares should you buy for strong potential long term returns?

Listed below are three hot ASX shares that younger investors might want to consider as buy and hold investments:

Afterpay Ltd (ASX: APT)

The first option is payments company Afterpay. Thanks to its international expansion and the increasing popularity of the buy now pay later payment method with consumers and retailers, Afterpay has been growing its underlying sales at a rapid rate over the last few years. The good news is that I feel confident the company still has a significant amount of growth left in its tank. Especially considering the size of the US market and its recent expansion into Canada and mainland Europe. There's also the prospect of an entry into Asia in the near future. All in all, if everything goes to plan, I believe Afterpay could become a giant of the payments industry one day.

Kogan.com Ltd (ASX: KGN)

Another ASX share to consider buying is ecommerce company Kogan. While the pandemic hit many bricks and mortar retailers hard, it accelerated the shift to online websites like Kogan.com. This led to the company delivering incredible sales and profit growth during the second half of FY 2020. Pleasingly, the company's strong form has continued in FY 2021, with both its sales and earnings more than doubling in August. In addition to this, it added 152,000 new customers to its platform during the month. This was a record monthly increase and took its total to 2,461,000. While its growth will inevitably moderate in 2021, I believe it is well-positioned to deliver above-average earnings growth throughout the 2020s.

Pushpay Holdings Ltd (ASX: PPH)

A final option is this donor management and community engagement provider. As with the others, it was a very strong performer in FY 2020 despite the pandemic. Over the 12 months, Pushpay reported a 42% increase in customer numbers to 10,896 and a 1,506% increase in operating earnings to US$25.1 million. This strong growth is expected to continue in FY 2021, with management expecting to more than double its operating earnings to between US$50 million and US$54 million. Pleasingly, this is still only scratching at the surface of its lucrative market opportunity.

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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd and PUSHPAY FPO NZX. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Kogan.com ltd and PUSHPAY FPO NZX. 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.

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