Over the last three decades the Australian share market has provided investors with an average return of approximately 9.5% per annum.
This means that if you're going to beat the market over the next decade, you'll need to aim high and target returns of at least 10% per annum.
But which shares could be capable of beating the market in the 2020s? I think the two listed below could be market beaters:
a2 Milk Company Ltd (ASX: A2M)
I believe that a2 Milk Company could be a market beater over the next decade. This is due to its expanding fresh milk footprint and the growing demand for its infant formula in the China market. This strong demand was evident in the first half when a2 Milk Company's China label infant nutrition sales doubled to NZ$146.7 million.
While this is a sizeable figure, the company only has a very modest market share. And due to its strong brand and increasing distribution network in the country, I expect the company to capture a greater slice of the market throughout the 2020s and drive further strong earnings growth.
SEEK Limited (ASX: SEK)
Another ASX share which I think could be a market beater in the 2020s is SEEK. While 2020 has been a difficult year for the job listings giant because of the pandemic, I believe its long term outlook is as positive as ever. This is due to its leadership position in the ANZ market and its rapidly growing China-based Zhaopin business.
It is the latter business which I expect to be the key driver of growth over the next decade. In the first half of FY 2020 it contributed 47.8% of SEEK's total revenue. This is almost double the revenue contributed by the ANZ business. Given the size of the China market and its opportunities in other key Asian markets, I believe the company is well-placed to hit its revenue target of $5 billion later this decade. This compares to revenue of $1,537.3 million in FY 2019.
