With 2020 on the horizon, what better time to look to see if you can make some additions to your portfolio to take it to the next level.
Three high quality shares that I think would be great additions to most portfolios are listed below. Here's why I would buy them:
Afterpay Ltd (ASX: APT)
Although this payments company's shares have been on fire in 2019, I don't believe it is too late to invest. Due to the rapid adoption of its buy now pay later platform with consumers in both the United States and the United Kingdom, I believe Afterpay is well-positioned to grow its underlying sales at an explosive rate over the coming years. In addition to this, I suspect the company could look to expand deeper into the European market in 2020. If this is a success, it could accelerate its growth.
ResMed Inc. (ASX: RMD)
I think this global medical device company is another that has outstanding long term growth potential. This is due largely to its high quality products and the proliferation of obstructive sleep apnoea (OSA). A recent presentation by ResMed shows that its products have a significant and growing addressable market. At the last count, only 20% of OSA sufferers had been diagnosed. As more and more of these sufferers are diagnosed, I expect sales of its devices will grow strongly. Combined with its growing software recurring revenues, this could lead to above-average earnings growth for some time to come.
Xero Limited (ASX: XRO)
A final share to consider adding is Xero. It is a leading cloud-based business and accounting software provider. As with the others, I believe it could be a great buy and hold investment option. This is due to the quality and stickiness of its product, its strong pricing power, the shift to online accounting, and its massive global market opportunity. I expect these to lead to consistently strong sales and earnings growth over the next decade.
