Top 3 Must-Have ASX 200 Shares for Long-Term Investment
Investing in ASX 200 shares is a powerful strategy for wealth accumulation. However, not all shares offer the same potential for long-term growth. This article highlights three ASX 200 shares that have demonstrated strong performance and have promising futures.
Top 3 Must-Have ASX 200 Shares for Long-Term Investment
1. REA Group
REA Group, the operator of realestate.com.au, has been a standout performer in the ASX 200. Over the last 15 years, its shares have delivered an impressive average total return of 20.8% per annum. The company’s platforms are integral to the Australian real estate market, making it difficult for competitors to replicate its success. This dominant position, coupled with a growing presence in India, indicates a bright future.
2. ResMed
ResMed, a leader in medical devices for sleep apnoea and respiratory care, has provided consistent returns to investors. Since 2016, it has achieved an average annual return of 16.95%. The company thrives on long-term health trends, with rising diagnosis rates for sleep disorders. Its innovative integration of hardware and software leads to recurring revenue, boosting long-term customer loyalty. ResMed’s potential is further underscored by a target market of over 1 billion people.
3. TechnologyOne Ltd
TechnologyOne has also been remarkable in delivering returns. Over the past decade, this ASX 200 share has averaged a return of 20.2% per annum. The company specializes in providing mission-critical software to large organizations, fostering a loyal client base. Its successful transition to a software-as-a-service model has improved revenue visibility and reinforced cash generation. With management’s confidence in doubling its size every five years, TechnologyOne has the potential for sustained long-term success.
Conclusion
The above-listed ASX 200 shares—REA Group, ResMed, and TechnologyOne—have proven track records and substantial growth potential. Investors seeking to build wealth over the long term should consider including these companies in their portfolios.
