If you're looking for new additions to your portfolio, then I think the three ASX 200 shares listed below would be great options.
I believe they are amongst the best on offer on the Australian share market and could generate strong returns for investors over the next decade.
Here's why I rate them as five-star stocks:
a2 Milk Company Ltd (ASX: A2M)
I continue to rate this infant formula and fresh milk company as a five-star stock. I'm a big fan of the company due to its strong and unique brand, its wide margins, and positive long term growth potential. Overall, I believe these have put a2 Milk Company in a position to continue growing its earnings at a solid rate for many years to come. In FY 2020 the company is expecting to deliver another stellar result. The top end of its recently upgraded guidance implies year on year revenue growth of 34.1% and EBITDA growth of 35.4%.
CSL Limited (ASX: CSL)
Another five-star stock to consider is CSL. I think the biotherapeutics giant is arguably the highest quality company that Australia has ever produced and could be a great long term investment. This is thanks to CSL's world class operations, leading therapies, growing plasma collection network, and its potentially lucrative research and development pipeline. I believe these leave the company well-placed to continue generating strong returns for investors over the next decade and beyond.
Xero Limited (ASX: XRO)
A final five star stock to consider is Xero. I think the leading cloud-based business and accounting software provider is a fantastic long term investment option. This is thanks partly to the quality and stickiness of its product, which has consistently led to Xero's retention rate remaining sky high. I feel this gives it a great foundation to build on. In addition to this, the company is still only scratching at the surface of its massive market opportunity. I expect further market share gains over the next decade to drive strong earnings growth and returns for investors.
