The benchmark S&P/ASX 200 Index (ASX: XJO) is home to a number of high quality shares for investors to choose from.
But with such a diverse range of shares available to investors, it can be difficult to decide which to invest your hard-earned money into.
Well, two ASX 200 shares which I think are must buys are listed below. Here's why I rate them highly:
Afterpay Ltd (ASX: APT)
The first ASX 200 share I think is a must-buy is Afterpay. Although it is certainly a high risk option (and therefore not suitable for all investors), I believe the potential returns on offer over the long term make it a great buy and hold option. This is due to its international expansion and leading position in a buy now pay later industry growing rapidly thanks to the increasing popularity of the payment method with both consumers and retailers.
In respect to its international expansion, Afterpay has recently launched in Canada and acquired its way onto mainland Europe. But it isn't stopping there. Thanks partly to its relationship with WeChat owner, Tencent Holdings, the company has its eyes on entering the Asia market. Combined with its $5 trillion opportunity in the United States, I believe Afterpay has the potential to become a giant of the payments industry in the future.
ResMed Inc. (ASX: RMD)
Another ASX 200 share that I think is a must buy is ResMed. Thanks to the growing popularity of its masks and software solutions, it has been growing at a very strong rate over the last decade. Pleasingly, the company has started the new decade just as strongly as it finished the last. In FY 2020 it delivered a 15% constant currency increase in revenue to US$2,957 million and a 32% jump in net income to US$692.8 million.
Looking ahead, I believe it is well-placed to continue this strong form for some time to come. This is due to its world-class products and the massive number of undiagnosed sleep apnoea sufferers globally. Another big positive, which is often overlooked, is its rapidly growing digital health ecosystem. At the end of FY 2020 it had over 12 million cloud connectable medical devices. This provides ResMed with strong recurring revenues and an invaluable amount of high quality data.
