Among the 200 shares trading on the S&P/ASX 200 Index (ASX: XJO), I believe there are a number that standout as great buy and hold options.
Three top ASX 200 shares that tick a lot of boxes for me are listed below. Here’s why I would buy them:
Altium Limited (ASX: ALU)
The first ASX 200 share to consider buying is Altium. It is a provider of printed circuit board (PCB) design software and other related services. The Altium share price has been one of the best performers on the ASX over the last few years. And while its business performance this year will disappoint because of the pandemic, I believe it remains well-placed to resume its strong form once the crisis passes. This is due to its exposure to the Internet of Things market which continues to grow at a rapid rate. As the majority of connected devices require PCBs inside them to function, demand for Altium’s software looks set to continue to increase and drive strong profit growth.
Cochlear Limited (ASX: COH)
Cochlear is a manufacturer and distributor of cochlear implantable devices for the hearing impaired. I think it could be a great long-term investment option due to its leadership position in a structural growth market which has high barriers to entry and attractive demographics. Combined with its high level of investment in research and development, I feel Cochlear is positioned to continue growing its earnings at a solid rate over the next decade. I expect this to lead to the Cochlear share price outperforming the ASX 200 over the 2020s.
REA Group Limited (ASX: REA)
Another quality ASX 200 share to buy is this property listings company. I’m a big fan of REA Group because of the way it has continued to deliver profit growth during both the housing market downturn and the pandemic. I feel this bodes well for the company when trading conditions improve. Especially given the sizeable cost cutting it has undertaken during the crisis. Overall, I believe REA Group is in a position to grow its earnings at an above-average rate for a number of years from FY 2021 onwards. This could make REA Group shares a great buy and hold option.
Where to invest $1,000 right now
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Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Altium and Cochlear Ltd. The Motley Fool Australia has recommended Cochlear Ltd. and 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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