One of the best ways to grow your wealth is arguably to invest in high quality companies with a long-term view.
The latter gives your investment time to compound and supercharge your returns and wealth creation.
As for the former, they say the cream always rises to the top. And this is usually the case in the share market with the very best companies delivering the best returns over the long term.
But which ASX 200 shares could be classed as high quality? Let's look at three that could be buys according to analysts. They are as follows:
CSL Limited (ASX: CSL)
CSL could be one of the highest quality companies on the ASX boards. It is one of the world's leading biotechnology companies with a collection of businesses that are leaders in the respective fields. This includes CSL Behring, CSL Vifor, and Seqirus businesses, which focus on blood plasma products, kidney therapies, and vaccines, respectively.
But CSL is never one to rest on its laurels. Each year it reinvests in the region of 12% back into its research and development activities. This ensures that it has a pipeline of potentially lucrative treatments.
Macquarie is a big fan of the company sees scope for its shares to rise to $500 in the coming years. But in the immediate term, the broker has an outperform rating and $330.00 price target on them.
Goodman Group (ASX: GMG)
A second high quality ASX 200 share for investors to look at is Goodman Group. It is a leading integrated commercial and industrial property company with a world class portfolio of assets in key locations across the globe.
Strong demand for these assets has underpinned stellar earnings growth over the last decade. The good news is that Morgan Stanley thinks this positive form can continue. Especially given its belief that Goodman's exposure to artificial intelligence through its data centre pipeline will be another driver of future growth.
Morgan Stanley currently has an overweight rating and $36.65 price target on its shares.
ResMed Inc. (ASX: RMD)
Bell Potter thinks that this sleep disorder treatment company could be a high quality ASX 200 share to buy.
The broker likes ResMed due to its significant opportunity as a leader in obstructive sleep apnoea (OSA) and other sleep disorders. It notes that "the market for OSA and chronic obstructive pulmonary disease (COPD) remains under penetrated, and we expect industry volume growth to continue in the 6-8% range for the foreseeable future."
This bodes well for its sales and earnings growth over the next decade. Particularly given that one of its key rivals has been battling a major product recall.
Bell Potter has a buy rating and $36.00 price target on its shares.
