One of the keys to successful long-term investing is being able to identify companies that can consistently grow their earnings long into the future.
If you can do this then you could set yourself up for some market beating returns over the long run.
With that in mind, here are three top ASX shares that I think have strong long term growth prospects:
a2 Milk Company Ltd (ASX: A2M)
One of my favourite ASX growth shares is a2 Milk Company. Although its shares are certainly not cheap, I would still be a buyer of them if you're prepared to make a long term investment. This is because of the incredible demand for its infant formula products in China, its strong pricing power, and its ongoing expansion in the North American fresh milk market. Combined with potential earnings accretive acquisitions and new product launches, I believe the company is well-placed to achieve further strong growth in FY 2021 and beyond.
NEXTDC Ltd (ASX: NXT)
Another top growth share to consider buying with a long term view is NEXTDC. Once again, although the data centre operator's shares look expensive, I believe they are worthy of the premium. I remain confident that NEXTDC is in a strong position to deliver a level of earnings growth over the next decade that justifies the lofty multiples its shares trade at. This is because as the cloud computing boom accelerates, demand for NEXTDC's innovative data centre outsourcing solutions and connectivity services is likely to increase significantly.
Xero Limited (ASX: XRO)
A final growth share to consider buying is this cloud-based business and accounting software provider. Xero has been growing at an explosive rate over the last few years thanks to the rapid adoption of its software by small businesses across the globe. The good news is that I believe this strong form can continue for some time to come. Especially given how management estimates that less than 20% of its global English-speaking target market is using cloud-based accounting software at present. I expect this number to increase materially in the future given the overwhelming benefits of cloud-based software over traditional alternatives.
