Australian tech investors, here’s what caught my eye: two ASX 200 shares that could be set for long-term success.
A Market-Resistant Model
NAB has developed a model that identifies companies with strong, market-resistant growth characteristics, and two of its picks are now listed on the ASX. According to NAB’s analysis, these companies have a high chance of continuing to grow in the next decade, even if the broader market experiences downturns.
Meet Afterpay and Xero
The first share, Afterpay, has grown from a small payment service to a global fintech giant. It’s easy to see why NAB is optimistic about Afterpay’s future – the company’s subscription-based model allows it to attract and retain customers, creating a loyal customer base. This business model is less affected by short-term market fluctuations.
The second share, Xero, is another fintech company that has disrupted the accounting software industry. Xero’s cloud-based platform has won over a large number of small business customers, who value its ease of use and scalability. As more businesses shift to cloud-based solutions, Xero’s growth is likely to continue.
What this means
For investors looking to build wealth over the next decade, these companies offer a compelling narrative. By providing essential services to their customers, they’ve managed to build a moat against competition and establish a loyal customer base. This means their growth is less dependent on external factors, making them a more attractive investment option.
Of course, no investment is foolproof, but after careful analysis, NAB believes these companies have the potential to deliver strong returns in the long term. Their focus on building valuable businesses, rather than just riding market trends, sets them apart from other ASX 200 shares.
