A $5000 should not be a big sum for many investors. But even with such a small sum, assuming you invested A $5000 in Australian stock markets 30 years ago, the total principal return today would be A $82500.
The conclusion is based on data from the Fidelity, which saw average annual returns of 9.1 percent over the past 30 years in Australia's stock markets as of last year.
Of course, these calculations are only the most basic theoretical calculations, in order to achieve long-term stable profits in the stock market, we also need to find the right direction of investment.
So, assuming entry from now on, what are the current areas and companies of ASX that deserve our attention?
Cochlear Limited (ASX: COH)
Cochlear, a global leader in hearing solutions, is fully capable of delivering long-term market returns to investors. As an industry leader with a wide distribution network, analysts expect a surge in demand for cochlear products as the global population ages.
Chris Kallos, an analyst at Morningstar (Morningstar) Medical shares, said the popularity of investors was partly due to the defensive nature of the industry. Even in a downturn, consumers need to spend on important healthcare products and services.
Given the strength of Cochlear's business, Morningstar (Morningstar) upgraded its moat rating to "wider" in December. Kallos said the company has a sound technical lead in cochlear implants, not just in Australia. Even in the world is in a leading position.
AGL Energy（ASX：AGL）
AGL Energy (ASX:AGL) is one of the largest integrated energy companies in Australia. Its future profit growth is due to its low-cost thermal power generation capacity and vertical integration cost advantages.
Adrian Atkins, senior equity analyst at Morningstar (Morningstar), who raised the company's 2018 mid-term earnings forecast in December last year, believes AGL has the ability to adapt to changing industry competition. The company also has a strong free cash flow and a strong balance sheet.
Atkins said the company's revenue is still largely from the energy sector, which is growing opportunities and competition following government's deregulation of the energy market. But AGL's strong operating cash flow has made it possible for most previously promised dividend dividends to be discounted.
Bapcor（ASX：BAP）
Bapcor is a leading Australian auto parts supplier whose target markets include professional wholesale, trading, retail and services for automotive parts in Australia and New Zealand.
Morningstar (Morningstar) expects the company's EPS to grow more than 26 percent in the new fiscal year, and Morningstar stock analyst Daniel Ragonese is optimistic about the future of the auto parts industry, especially in the trading sector. "Bapcor has plenty of inventory, convenient location for stores," he said. Employees' technical expertise has formed their unique intangible brand equity. "
The estimated fair value of the company's shares, (FVE), rose from A $5.90 to A $7 per share, and expects earnings per share to grow 18 percent over the next 10 years, compared with 13 percent growth in the company's EPS at this stage.
Disclaimer: this article is for information only, does not produce any investment suggestion, does not bear any transaction loss