Will Xero shares and these 2 other ASX companies be portfolio staples by 2030?

Xero Limited (ASX: XRO) shares have clmbed higher in recent years but this is why it could be a share portfolio staple of the future.

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Xero Limited (ASX: XRO) shares have been performing strongly in recent years and it looks like the cloud-based accounting software company is one of the hottest ASX growth shares right now.

Personally, I think the Aussie company has strong growth potential in the next decade. Xero is still signing up large clients and I think accounting software is as in-demand as ever in the current COVID-19 climate.

However, Xero isn't the only company that I could see becoming a cornerstone of Aussie share portfolios by the year 2030.

Below I'll share which ASX stars I have my eye on as potential large-caps of the future.

watering can watering money trees which are growing in size

Image source: Getty Images

Why Xero shares could be a cornerstone investment

There seems to be a lot of talk on whether ASX growth shares are overvalued, particularly in the tech space. In saying this, I still believe it's worth thinking about what will be the leading companies in the future. For today, that could mean strong dividend shares like Telstra Corporation Ltd (ASX: TLS) and BHP Group Ltd (ASX: BHP).

In reality, growth shares often become dividend shares as they mature. High return on equity can't continue forever, which means eventually these companies start returning capital to shareholders.

I think Xero shares are just one potential staple of the future. I also think NextDC Limited (ASX: NXT) could be a growth turned dividend share.

The NextDC share price has already rocketed 330.3% in the last 5 years. NextDC is an Australian data centre operator and I think it's well-placed to capitalise on a growing market.

This ASX tech group is continuing to expand and operates data centres across the country. That diversity and economic moat around the business could be the secret to sustaining momentum over the next decade.

Of course, nothing is guaranteed with ASX growth shares like Xero or NextDC. However, the best we can do as investors is to pick high-quality companies with long-term potential.

I'd also consider putting a growing healthcare share like Polynovo Ltd (ASX: PNV) in the mix. 

Polynovo has seen strong success. Strong sales networks and extensive research and development bode well for the company's future growth trajectory.

Given the solid technical environment, I would put Polynovo in the same basket as Xero shares in terms of long-term growth potential.

Foolish takeaway

These are just a few ASX growth shares that I think have strong growth potential.

I like the look of Polynovo, NextDC and Xero shares because all have had proven success with their business models.

Investing in high-quality ASX shares for the future is the best strategy that I can think of to build long-term wealth.

Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Xero. The Motley Fool Australia owns shares of and has recommended Telstra 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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