Due to having a high tolerance for risk, I'm a big fan of investing in growth shares.
Luckily for me there are a large number of companies listed on the Australian share market that have strong long-term growth prospects.
Three which I think are among the best on the local market right now are listed below. Here's why I like them:
A2 Milk Company Ltd (ASX: A2M)
One of my favourite growth shares on the local market is A2 Milk Company. The leading dairy and infant formula company has been an impressive performer over the last three years thanks to the strong sales growth of its a2 Platinum infant formula. The main catalyst for this has been demand in China and from daigou shoppers in Australia. The good news is that this demand doesn't appear to be waning and a2 Milk Company's market share has continued to grow at a solid rate. With its shares changing hands at 38x estimated forward earnings, I feel they are fairly priced for its current growth profile. Though it is worth remembering that if its growth falls short of expectations, its shares could come under pressure.
Domino's Pizza Enterprises Ltd (ASX: DMP)
Another top growth share to consider is this leading pizza chain operator. Although there have been concerns over the profitability of its Australian franchises, a note out of Macquarie last month suggested that these concerns are unwarranted. I believe Macquarie is spot on with this and feel Domino's could be a great long-term investment option. Especially with management focusing on increasing its margins and growing its store network by a massive 94% by 2025.
ResMed Inc (ASX: RMD)
The ResMed share price has taken a tumble in 2019 following the release of a softer than expected second quarter result. I think the pull back in the sleep treatment-focused medical device company's shares has created a buying opportunity for investors. Not least because the sleep treatment market is tipped to grow strongly over the next decade, putting ResMed in a position to deliver above-average earnings growth during the period.
