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Where I would invest $10,000 in the share market

James Mickleboro

An annual $10,000 investment might not seem like a lot on the surface of it, but over the long-term this level of investment can grow into something much bigger.

According to Fidelity, the local share market has provided an average annual return of 9.1% over the last 30 years.

While there is no guarantee that the share market will provide a similar average return over the next 30 years, if it were to do and you invested $10,000 per year into the share market, in 30 years your investment would have grown to be worth approximately $1.5 million.

With that in mind, here are three shares which I would consider investing that initial $10,000 into:

Bellamy’s Australia Ltd (ASX: BAL)

I have been very impressed with the remarkable turnaround of this infant formula company. The company has gone from being on the brink of bankruptcy a year ago to become a market darling once again. In FY 2018 revenue growth is expected in the range of 30% to 35%. But with demand for its products growing strongly and its CFDA accreditation likely to be granted in the next few months, I believe Bellamy’s is positioned perfectly to deliver an even stronger result in FY 2019.

BHP Billiton Limited (ASX: BHP)

While it isn’t the type of share you can buy and hold forever, I believe the strength of the global economy should mean that BHP has the ability to outperform the market for the next two to three years. Coupled with its generous fully franked dividend, I think this makes the mining giant a great investment idea today.

CSL Limited (ASX: CSL)

In my opinion CSL is one of the highest quality companies in Australia and I believe its shares are capable of providing market-beating returns over the long-term. This is thanks largely to the strength of its core business and fledgling influenza business. Combined I think they will help the biotherapeutics company grow its earnings at an above-average rate for the foreseeable future.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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 Bruce Jackson.