3 ASX shares that could create lasting generational wealth

3 asx shares that could create lasting generational wealth

A young couple hug each other and smile at the camera standing in front of their brand new luxury car

It can be tempting for investors to try and get rich quickly by buying ASX shares of a speculative nature.

And while sometimes a tiny portion of these investments will be successful, the majority just end up irreversibly destroying wealth.

A more reliable way to build generational wealth is to have a strong foundation of strong, reliable ASX shares in a portfolio.

But which shares could help you in this quest? Let's look at three that could tick these boxes:

CSL Ltd (ASX: CSL)

Over the last decade, this biotherepeutics company's shares have delivered an average total return of 16.8% per annum. This is comfortably ahead of the historical average return of 10% per annum for the share market.

The good news is that this ASX share looks well-placed to continue this market-beating trend long into the future. This is thanks to the quality of its businesses, its significant investment in research and development, strong demand for immunoglobulins, and its pipeline of potential products.

In fact, analysts at Macquarie have suggested that its shares could rise to beyond $500 within three years. This compares favourably to its current share price of $293.88.

Goodman Group (ASX: GMG)

This integrated industrial property company is another ASX share that has smashed the market over the past decade. During this time, it has achieved an average return of approximately 22% per annum.

Citi is feeling very positive on the company's outlook. Although it trades at a premium, the broker believes this is justified given its strong earnings growth outlook. This is being underpinned by demand for industrial property and its data centre and warehouse developments.

Citi has a buy rating and $40.00 price target on Goodman's shares.

NextDC Ltd (ASX: NXT)

Speaking of data centres, another ASX share that could help you build generational wealth is NextDC. It is one of the leading data centre operators in the Asia-Pacific region. Over the last 10 years, its shares have achieved an average return of 27% per annum.

Morgans believes the company has a very bright future. It currently has an add rating and $19.00 price target on its shares. The broker highlights that "the demand wave from business digitisation and cloud adoption will only get bigger as the third wave (AI) starts rolling into data centres." It believes "NXT is especially well placed to succeed."

In light of this, the broker has suggested that "if NXT can fund and fill the planned pipeline, then it could be a $40+ stock."

Should you invest $1,000 in CSL right now?

Before you buy CSL shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and CSL wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 24 June 2024

More reading

    Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor James Mickleboro has positions in CSL and Nextdc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Goodman Group, and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended CSL and Goodman Group. 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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