Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services.
Author Bio
James Mickleboro is an investment writer and analyst who has worked with The Motley Fool Australia for 10 years, covering ASX shares, market news, broker research, dividends, growth stocks, and long-term investing ideas.
Over that time, James has written extensively about Australian equities and developed a particular focus on helping everyday investors understand the stories behind share price moves, company announcements, broker views, and broader market trends.
His best investment recommendation was identifying Afterpay while it was still a small-cap growth share, before its rise into one of Australia’s biggest technology success stories. His worst investment lesson came from CSL Ltd (ASX: CSL), where he was burnt by believing management could turn the business around sooner than the market ultimately allowed.
Areas of Expertise
ASX shares
Growth and dividend investing
Broker research
Interpreting company announcements
Market news
Portfolio strategy
Long-term wealth creation
Education
Bachelor of Politics, Philosophy and Economics. CFA Institute
Social Media LinkedIn
Favorite Investment Quote
"It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price."
— Warren Buffett
Published
Over the long term, Australian shares have historically delivered total returns of around 10% per annum, including dividends.
That's a solid result, but I think there are opportunities to do better.
I've screened the S&P/ASX 200 index (ASX: XJO) for companies that could outperform over the next five years.
I'm especially interested in businesses with room to grow earnings substantially, rather than those that need investors to keep paying higher valuations.
The first ASX 200 share I think could outperform over the next five years is gaming technology company Aristocrat Leisure.
Aristocrat has established itself as one of the world's leading suppliers of poker machines, with its games found in casinos across the globe.
What I like about the company is its ability to generate recurring revenue. As well as selling gaming machines outright, Aristocrat operates machines in casinos under arrangements that allow it to earn ongoing income from their use.
This means that expanding the number of machines it has operating on casino floors can provide a growing source of earnings over time.
Aristocrat also has opportunities beyond traditional casinos. Its online gaming business gives it exposure to the expanding market for regulated internet gambling, where it can supply games and technology to operators.
I believe this combination of established casino operations and growing digital opportunities puts Aristocrat in a strong position for the next five years.
Competition, regulation and the need to keep developing popular games are ongoing challenges. However, with its established market position and opportunities to expand its recurring revenue streams, I think Aristocrat has the potential to deliver earnings growth that supports market-beating returns.
V qba'g rkcrpg cebsvgf gb vapernfr ng gung engr rirel lrne. Ubjrire, jvgu vgf tebjvat onaxvat ohfvarff naq bccbeghavgvrf gb cnegvpvcngr va znwbe vairfgzrag cebwrpgf nebhaq gur jbeyq, V oryvrir Znpdhnevr pbhyq or n fhofgnagvnyyl ynetre ohfvarff va svir lrnef.
Gurer ner evfxf, cnegvphyneyl tvira gur pbzcrgvgvba va gur HF naq gur fhofgnagvny nzbhag Kreb unf vairfgrq va vgf rkcnafvba.
Ubjrire, vs gur pbzcnal pna rfgnoyvfu n zhpu fgebatre cbfvgvba va gur Nzrevpna znexrg juvyr pbagvahvat gb tebj ryfrjurer, V guvax vgf rneavatf pbhyq or pbafvqrenoyl uvture va svir lrnef.
