With many savings accounts offering base rates of just 0.05% per annum, if I had $10,000 in an account I would consider putting it to work in the share market.
After all, if you invest wisely, you could generate a return many, many times greater with shares.
But where should you invest $10,000 right now? Two top ASX 200 shares to consider buying are listed below:
a2 Milk Company Ltd (ASX: A2M)
I think a2 Milk could be a great place to invest $10,000. The infant formula and fresh milk company has been an impressive performer in FY 2020 despite the pandemic. In April, the company revealed that demand for its products had been very strong, particularly in respect of infant nutrition products. So much so, the company expects revenue in the range of NZ$1,700 million to NZ$1,750 million in FY 2020. It also forecast stronger than expected EBITDA margins of 31% to 32%, despite investing NZ$200 million into marketing activities.
The top end of its guidance range implies year on year revenue growth of 34.1% and EBITDA growth of 35.4%. The good news is that based on its relatively modest market share and increasingly popular products, I believe there is still a long runway for growth in the China market. This is likely to be complemented by the launch of new products or even acquisitions in the near future. As a result, I think the a2 Milk share price has the potential to continue its market-beating ways for a long time to come.
CSL Limited (ASX: CSL)
With the CSL share price down 18% from its 52-week high, I think now could be an opportune time to invest in this biotherapeutics giant. This share price weakness has been caused by concerns over the impact that the pandemic will have on plasma collections. These collections are vital for the production of some key products and lower levels could weigh on its performance a little in FY 2021.
While this is certainly a risk, I believe other areas of the business will offset this. Particularly its Seqirus business, which looks set to benefit greatly from increasing demand for flu shots. Looking further ahead, I believe its burgeoning research and development (R&D) pipeline will be very supportive of growth. This pipeline contains a number of therapies that have the potential to generate billions of dollars in sales over the next decade if their trials are successful.
