3 outstanding ASX shares to buy in August

Here's why I think a2 Milk Company Ltd (ASX:A2M) and these outstanding ASX shares would be great options for investors in August…

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If you're looking at investing in the share market in August, but you're not sure where to put your money, I would suggest you consider the high quality shares listed below.

I believe these companies are well-positioned to generate strong returns for investors over the next decade. Here's why I would invest in their shares:

a2 Milk Company Ltd (ASX: A2M)

The first share to consider buying in August is a2 Milk Company. I think the New Zealand-based fresh milk and infant formula company could be a great long term option. After growing its earnings at an explosive rate over the last few years, I'm confident its strong form can continue for some time to come. This is thanks to the increasing demand for its infant formula products in the massive China market (and its relatively modest market share), its expanding fresh milk footprint in the United States, and its sizeable cash balance. The latter gives a2 Milk Company the option to look to accelerate its growth in the coming years through potential earnings accretive acquisitions.

Appen Ltd (ASX: APX)

Another option to consider is Appen. It is a leading developer of high-quality, human annotated datasets for the machine learning and artificial intelligence markets. It provides the data required to create or improve artificial intelligence machine learning models. This is a vital part of the process, because without quality data a model will never reach its potential. Given the growing importance of machine learning, the increasing amount of money been spent by businesses on it, and Appen's leading position in the industry, I believe it is well-placed for strong long term growth over the next decade.

Cochlear Limited (ASX: COH)

A final share to consider buying in August is Cochlear. I believe the hearing solutions company is well-positioned for strong long term growth thanks to the ageing populations tailwind. By 2050 there are forecast to be 1.5 billion people over the aged of 65. This will be almost triple the number of over 65s in 2010. As hearing tends to fade as we age, I expect this tailwind to drive a sustained increase in demand for its cochlear implantable devices over the next couple of decades.

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 Cochlear Ltd. The Motley Fool Australia owns shares of A2 Milk and Appen Ltd. The Motley Fool Australia has recommended Cochlear Ltd. 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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