I'd invest in these 2 ASX shares for a real shot at $1 million

A million bucks is still a lot of money for most people. Quality Australian stocks, along with patience, can take you to seven digits.

| More on:
A couple are happy sitting on their yacht.

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

A million bucks might now be 30% below the median house price in Sydney, but it's still a lot of money.

If anything, that shows how crazy real estate is in Australia's largest metropolis, and says nothing about how valuable a million bucks is.

Seven figures can provide financial freedom, so potentially you never have to work again.

One of the best ways of reaching the magic mill is to invest in ASX shares.

Of course, there are no guarantees in life. But you're never going to have a chance if you don't at least try.

Let me show a couple of shares that experts are loving at the moment to demonstrate how you could reach the promised land:

Uranium is so hot right now

Deep Yellow Limited (ASX: DYL) is a uranium producer operating projects in Western Australia and Namibia.

The global uranium spot price has doubled in the past year as nations start to look to nuclear power to meet their energy needs in a market that's now missing a major supplier in Russia.

Nuclear power is also in favour for many jurisdictions as a method of producing huge amounts of power in return for little carbon emissions.

The Deep Yellow share price has climbed a stunning 97% over the past 12 months. But experts in the know believe there is more where that came from.

Last weekend's shock announcement from the world's largest uranium producer, National Atomic Company Kazatomprom Joint Stock Company (FRA: 0ZQ), that its production forecasts have been downgraded caused a frenzy in financial markets.

Uranium and uranium stocks rocketed out of fears that tight global supply would force many customers to turn to the spot market and pay market — rather than fixed — prices.

The situation showed just how sensitive the nuclear fuel market is at the moment.

All up, Deep Yellow shares have gained 232% over the past half-decade. All five analysts that cover the stock believe it is a strong buy at the moment, according to CMC Invest.

The ASX shares the experts love at the moment

Related to the energy crisis is MMA Offshore Ltd (ASX: MRM).

It's a marine services provider that lends out necessities like ships to clients with offshore facilities such as oil and gas rigs.

The MMA Offshore share price has literally doubled in the past year as demand for its services has gone through the roof.

Similar to Deep Yellow, this run-up hasn't put off professional investors.

CMC Invest currently shows all five analysts rate the stock as a strong buy.

After the ups and downs over the past five years, MRM Offshore shares are now trading 109% higher.

How to reach $1 million 

If you are skilled and lucky enough to buy a couple of shares like these, you are in with a real shot at a million.

Over the past five years, Deep Yellow shares have returned a compound annual growth rate (CAGR) of 27.1%, while MRM Offshore has managed 15.9%.

Let's say you start with a $50,000 portfolio.

The average CAGR for our two sample stocks is 21.5%. If your portfolio can grow at that rate and you keep adding $400 each month, you will reach seven figures in just 14 years.

That's an early retirement for many people.

If you start at age 30, then that's a million bucks at just 44. Even if you begin investing at 40 years old, you reach your target at 54, which is much earlier than Australia's legislated retirement age.

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Mma Offshore. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Investing Strategies

a mature aged couple dance together in their kitchen while they are preparing food in a joyful scene as the Breville share price rises on the back of a 25% profit surge
Dividend Investing

The best ASX income shares for retirees in 2025

Let's see what makes these shares top picks for retirees.

Read more »

A retiree relaxing in the pool and giving a thumbs up.
Dividend Investing

3 under-the-radar ASX All Ords shares that could fund your early retirement

I think all three of these relatively unknown stocks are strong choices for retirement.

Read more »

Falling yellow arrow with descending wooden bars with the percentage sign written on them.
Dividend Investing

Buy these ASX dividend shares to beat falling interest rates

Let's see which dividend shares analysts are tipping as buys this month.

Read more »

Two plants grow in jars filled with coins.
Growth Shares

3 ASX 200 growth stocks up more than 100% in 1 year that could charge higher

It's been a memorable year for shareholders of these 3 companies.

Read more »

A man reacts with surprise when her see a bargain price on his phone.
Cheap Shares

I think these 2 cheap ASX shares are buys for value investors in June

These stocks may be priced too cheaply.

Read more »

Couple looking at their phone surprised, symbolising a bargain buy.
Cheap Shares

Why I think these 2 ASX shares are steals

These investments are trading at really attractive valuations.

Read more »

A senior couple discusses a share trade they are making on a laptop computer
Dividend Investing

1 ASX dividend stock down 54% I'd buy right now

This business could build good returns for investors.

Read more »

Afterpay share price a happy shopper with a wide mouthed smile holds multiple shopping bags up around her shoulders.
Growth Shares

The pros and cons of buying Zip shares in June

Should investors buy now or wait until later?

Read more »