I think the most useful investments for wealth creation are because of their ability to significantly scale over long time periods like five or ten years. Profit growth is so important because the amount of profit generated is what investors value a business on. I'd say ASX growth shares have the best chance of delivering the largest returns because of their ability to deliver .
Albert Einstein once reportedly said: Compound interest is the eighth wonder of the world. He who understands it, earns it, he who doesn't, pays it. A business that's growing profit at a fast rate could double its revenue/profit in just a few years.
Here's why I think the two ASX growth shares below are among the most promising companies. Temple & Webster Group Ltd ( ) This company is Australia's largest pure-play online of furniture and homewares, with more than 200,000 products on sale from hundreds of suppliers. Its business model involves suppliers sending products directly to customers, which reduces the need to hold inventory, allows for a larger product range, and enables the ASX growth share to have a capital-light model.
Temple & Webster's product offering and the long-term trend of adopting online shopping are unlocking strong revenue growth. In , the company's revenue increased by 26% to $498 million. From early FY25 to 11 August 2024, revenue was up another 26%.
It aims to reach $1 billion of annual sales within the next few years, with strong growth expected in its core operations (with a.