I think that the two S&P/ASX 200 Index (ASX: XJO) shares I'm going to name in this article will be able to beat the market this year and over the long-term. Of course, that's just my opinion and there's no guarantee at all.
The ASX is home to some quality growth shares. But it's also home to plenty of mature businesses with little growth prospects. You just need to find quality growth businesses at the right price.
Here are my two ASX 200 picks:
Brickworks Limited (ASX: BKW)
Brickworks has been one of the most reliable businesses on the ASX over the past few decades. It hasn't cut its dividend over the past 40 years and it's steadily expanding its Australian building products offering with organic growth and acquisitions.
It also recently went into the US with three targeted acquisitions which have quickly made it the market leader in the north east of the US.
The defensive nature of Brickworks' industrial property trust and holding of ASX 200 investment conglomerate Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) shares are very attractive assets.
We're now learning that cash grants of between $20,000 to $40,000 may be given to buyers of newly-constructed homes. The government is also apparently considering giving people cash for home renovations to help local tradies according to reporting by the Australian Financial Review. This would likely indirectly benefit Brickworks.
The diversified ASX 200 property business currently offers a grossed-up dividend yield of 5.3%.
A2 Milk Company Ltd (ASX: A2M)
There are few ASX 200 companies that can say they are growing strongly in both the US and China. Those two markets alone could support a much larger A2 Milk business.
A2 Milk has expertly created a brand known for quality and trustworthiness. It's an offering that resonates with consumers who want a safe (and good-tasting) product.
The current coronavirus pandemic is causing consumers to load up on product, which is helping A2 Milk's profit margins.
A2 Milk has pretty high profit margins so a healthy amount of the revenue goes straight to the bottom line. The ASX 200 business will soon be generating earnings from Canada with a licensing agreement. There are plenty of other countries for A2 Milk to expand into over time.
I believe there's plenty more growth to come because A2 Milk is only just getting started in North America. Its huge cash balance could soon start to be used for shareholder returns or even fund an acquisition.
Foolish takeaway
I really like both Brickworks and A2 Milk as ASX 200 share picks. At the current prices I believe Brickworks is cheaper, but A2 Milk is likely to produce stronger returns over the next decade as the global expansion continues.
