How I'd find growth shares to buy today to double my money

Investing money in growth shares could be a profitable move. It may improve the chances of generating 100% returns over the long run.

rise in asx share price represented by one hundred dollar notes flying freely through the air

Image source: Getty Images

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

Investing in growth shares has been a sound means of generating high returns for many years. Such companies offer the potential for strong profit growth that has often translated into a rising share price.

Of course, unearthing the best growth opportunities to buy now may be a tough task. The world economy faces a challenging future, but one that could be filled with opportunity.

By focusing on sectors with long-term growth appeal, and companies that have large competitive advantages, it is possible to earn 100%+ returns from an initial investment in the coming years.

Doubling an investment in shares

While doubling the value of an investment in growth shares may sound unlikely at first glance, the stock market's track record shows that it could be very achievable. For example, indexes such as the FTSE 100 Index (FTSE: UKX) and S&P 500 Index (SP: .INX) have delivered annualised total returns that are in the high-single digits in recent decades. Assuming a similar return in future would mean that an investment in the stock market that tracks the wider index could double in value within a decade.

Of course, buying companies with strong growth characteristics may help to generate higher returns than the stock market. Investors who buy such companies at fair prices may enjoy impressive returns that provide them with a significantly improved financial outlook.

Unearthing the best growth shares

Finding companies that can deliver higher growth rates than the wider stock market is a challenging task at the present time due to the uncertain economic outlook. However, by focusing on industries benefitting from growth trends, it is possible to unearth attractive growth stocks. For example, sectors such as healthcare and online retail could benefit from long-term trends such as an ageing global population and a shift in consumption from in-store to online.

Within appealing growth sectors, it could be a good idea to focus on companies that have a clear competitive advantage versus their peers. For example, they may have a unique product that can provide them with higher margins and a more resilient sales profile in the coming years. Similarly, businesses with strong brand loyalty may become more dominant in growth industries. This may lead to a rising market share and higher profitability.

Building a portfolio of stocks

As ever, diversification is crucial when building a portfolio of growth shares. Some businesses will inevitably fail to live up to expectations. Therefore, it is important to have a wide spread of holdings to limit the impact of a small number of failures on a wider portfolio.

Furthermore, buying stocks with appealing growth prospects when they trade at a fair price could be crucial to doubling an initial investment. Even if a stock has an attractive growth outlook, there should also be a margin of safety so there is scope for capital growth to match its rising bottom line.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the 'five best ASX stocks' for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Peter Stephens has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Growth Shares

Happy young couple saving money in piggy bank.
Growth Shares

Where to invest $2,500 into ASX 200 shares today

Analysts think these shares could be top buys for investors with money to invest.

Read more »

Two people having a meeting using a laptop and tablet to discuss Seven West Media's balance sheet
Growth Shares

3 excellent ASX shares to buy for your SMSF

Analysts think these shares could be top picks for SMSF investors. Let's find out why.

Read more »

A woman presenting company news to investors looks back at the camera and smiles.
Growth Shares

2 ASX growth shares to supercharge your portfolio

Analysts think these shares could be in the buy zone for growth investors right now.

Read more »

A group of people gathered around a laptop computer with various expressions of interest, concern and surprise on their faces. All are wearing glasses.
Growth Shares

Turn $300 into significant wealth: 3 explosive ASX opportunities for Aussie investors

Analysts think these shares could be great picks for growth focused investors.

Read more »

A man looking at his laptop and thinking.
Growth Shares

What I'd buy with $2,000 on the ASX right now

Here are three options for investors to look at this month.

Read more »

Silhouette of CEO standing in conference room looking out at cityscape.
Growth Shares

3 founder-led ASX 200 shares with serious long-term upside

Let's see what makes these shares top picks according to analysts.

Read more »

Man holding out Australian dollar notes, symbolising dividends.
Growth Shares

Where to invest $5,000 in ASX 200 shares in May

Analysts think that these shares could be top picks for Aussie investors next month.

Read more »

Two happy excited friends in euphoria mood after winning in a bet with a smartphone in hand.
Growth Shares

3 fantastic ASX growth shares to buy with $2,000 in May

Analysts think these shares would be top picks for growth investors right now.

Read more »