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:
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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.
