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4 quality ASX shares to buy in August

Are you aiming to make some additions to your portfolio in August? If you are, I would suggest you consider one of the four ASX shares listed below.

I believe all four have the potential to generate strong returns for investors over the 2020s. Here’s why I would buy them for the long term:

a2 Milk Company Ltd (ASX: A2M)

I believe a2 Milk Company would be a great ASX share to own. This is due to the insatiable appetite for its infant formula in China and its relatively modest market share in the lucrative market. In addition to this, the company is sitting on a mountain of cash and has just hired a new CEO with experience in mergers and acquisitions. I suspect it could accelerate its growth with acquisitions in the future.

Altium Limited (ASX: ALU)

Altium is an electronic design software provider which could have a very bright future ahead of it. This is due to its exposure to the Internet of Things and artificial intelligence booms. Global technology spending on both is expected to grow at a rapid rate over the next decade. This should lead to increasing demand for its award-winning software.

REA Group Limited (ASX: REA)

Another share to consider buying is REA Group. It is the owner and operator of the realestate.com.au website and several international equivalents. I believe it is a great buy and hold investment option due to the quality and strength of its business model and its positive long term outlook. And although market conditions are tough currently, I remain confident its growth will accelerate once the crisis passes.

Xero Limited (ASX: XRO)

Xero is a leading cloud-based business and accounting software provider. I think it could be a great long term option due to the quality of its product and the continued shift to online accounting. This year it surpassed 2 million subscribers, but this is still only a small portion of its massive global market opportunity. This gives Xero a significant runway for growth over the next decade.

Man who said buy Kogan shares at $3.63 says buy these 3 ASX stocks now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

*Returns as of 6/8/2020

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 and recommends Altium. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Xero. The Motley Fool Australia owns shares of A2 Milk. The Motley Fool Australia has recommended 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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