The S&P/ASX 200 Index (ASX: XJO) is home to a number of high quality shares for investors to choose from. But with so much choice, it can be hard to decide which ones to buy.
To narrow things down for you, I've picked out three ASX 200 shares which I think would be great additions to a balanced portfolio this week. They are as follows:
REA Group Limited (ASX: REA)
The first ASX 200 share to consider buying is this property listings company. While times are hard for the housing market right now, house prices have been tipped to rebound strongly in 2021. If this comes to pass, REA Group should see demand for listings increase. Combined with recent price increases, new revenue streams, and cost cutting, I feel REA Group's earnings growth should accelerate once again.
Telstra Corporation Ltd (ASX: TLS)
Another option for investors on the ASX 200 is Telstra. I've been very pleased with the way the telco giant has turned around its fortunes in 2020 and believe it is well positioned for a return to growth in the near future. This is due to the return of rational competition in the telco industry, its cost cutting plans, and its leadership position in the 5G market. I expect the latter to underpin solid growth in its increasingly important mobile business in the coming years. Another positive is that the Telstra share price is trading close to its 52-week low at present. This could make it an opportune time to consider a patient long-term investment.
Wesfarmers Ltd (ASX: WES)
A final ASX 200 share to consider buying is Wesfarmers. It is the conglomerate behind popular brands such as Bunnings, Kmart, Target, Catch, and Officeworks. It also has a number of chemicals and industrial businesses such as lithium miner Kidman Resources. In addition to this, Wesfarmers has a strong balance sheet and plenty of cash to deploy on earnings accretive acquisitions. Combined, I believe the company is well-positioned to deliver consistently solid earnings growth over the 2020s. This could make Wesfarmers shares a great option for a balanced portfolio.
