I believe that one of the best ways to grow your wealth is to invest in high quality companies with a long-term view.
This gives your investment time to compound and supercharge your returns and wealth creation.
But which ASX 200 shares could be classed as high quality right now? Let's look at two options that could be buys according to analysts. They are as follows:
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CSL Limited (ASX: CSL)
The first ASX 200 share that could be a quality buy and hold option is CSL.
This leading biotechnology company is one of Australia's highest-quality companies. It comprises the CSL Behring, CSL Vifor, and Seqirus businesses, which are leaders in their respective fields of blood plasma products, iron deficiency and nephrology, and vaccines.
Last week, it released its FY 2024 results and revealed an 11% increase revenue to US$14.8 billion and a 15% jump in net profit after tax before amortisation (NPATA) to US$3.01 billion.
Management expects this positive form to continue in FY 2025. It is guiding to NPATA growth of 10% to 13% in constant currency.
This went down well with analysts at Citi. In response, the broker retained its buy rating with an improved price target of $345.00.
Goodman Group (ASX: GMG)
A second ASX 200 share for investors to consider buying is Goodman Group. It is a leading integrated commercial and industrial property company with a world class portfolio of assets in key locations across the globe.
It has been growing at a strong rate for many years thanks to its strategy of developing high-quality industrial properties in strategic locations. Pleasingly, this continued in FY 2024, with the company reporting a 15% increase in operating profit to $2,049.4 million and a 14% lift in operating earnings per share to 107.5 cents. The latter was ahead of its upgraded guidance.
The good news is that management expects more of the same in FY 2025. It is guiding to a 9% increase in operating earnings per share. However, given its record of under-promising and over-delivering, it's quite likely that this guidance will be upgraded as the financial year progresses.
And with the company boasting of development work in progress (WIP) of $13 billion across 80 projects with a forecast yield on cost of 6.7%, Goodman appears well-placed to continue growing its earnings at a solid rate over the medium term.
Citi is also feeling very positive about the ASX 200 share's outlook. In response to its results, the broker put a buy rating and $40.00 price target on its shares.
