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2 ASX shares that keep kicking goals for investors

The best way to beat the share market over the medium-to-long-term is to pick a team of good growth shares.

You don’t need to have a very large portfolio of names to do well, a smaller group with more exposure would probably be able to deliver outsized returns.

If you can find a few key winners, then you can just keep holding and holding whilst they compound your wealth to the moon.

Here are two ASX shares that keep kicking goals despite already generating years of success in the past:

CSL Limited (ASX: CSL) 

CSL has perhaps been Australia’s greatest growth story over the past two decades, as it became a global giant in the blood plasma and biotherapy industry.

You’d think passing a market capitalisation of $100 billion would mean the end of double digit profit growth for CSL as large size becomes a problem.

Yet in FY19 it grew net profit by 17% in constant currency terms and in FY20 net profit could grow by up to 10% despite a material shift in the way it sells products into China, causing a short-term negative for earnings this year.

CSL is currently trading at just under 35x FY20’s estimated earnings.

REA Group Limited (ASX: REA) 

REA Group is another business that has been growing at a strong rate for over a decade. It has revolutionised the way property is sold in Australia. And it’s regularly adding new features so that it can charge a bit more. 

The website is one of the best pieces of digital real estate in the country. Being the market leader property portal means that it attracts the most potential buyers, which then attracts the most sellers and so on. This gives it strong brand power and allows the company to raise prices at a useful rate over time. The fee is quite low compared to the overall cost of selling a property. 

REA Group has proven how strong its business is by growing net profit by 6% in FY19 when the property market & volumes were so tough.

Sales volumes could return to a more ‘normal’ level in FY20 with the house prices starting recover in the two major cities of Sydney and Melbourne.

REA Group is trading at 35x FY21’s estimated earnings.

Foolish takeaway

Both of these businesses have been excellent performers for investors over the years. They both look quite expensive at these prices, but quality wins over time and low interest rates do justify some of the price increase.

If I had to choose one it would be REA Group, I think it has more of a growth runway – particularly with its investment stakes in overseas property sites.

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Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia has recommended REA Group Limited. 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 Scott Phillips.

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