S&P/ASX 200 Index (ASX: XJO) investors in their 40s still have 15–25 years until retirement. Investors in this demographic are generally at the peak of their income-earning potential. This should allow them to invest significant amounts of capital into the share market, with plenty of time to generate compounding returns.
ASX 200 investors in their 40s
As investors, we’re a motley crew. We all have motley goals, motley resources and motley risk appetite. Because of this, it is important to understand your own personal circumstances and invest accordingly. The below ASX shares will be fantastic options for most investors in their 40s, but not for all.
With so much time left until retirement, growth shares are still a fantastic option for investors in their 40s.
3 best ASX 200 shares to buy now
Nanosonics Ltd (ASX: NAN)
Nanosonics employs a razor and blade business model that I am a huge fan of. The company sells its Trophon disinfection machines at near cost price but then sells high margin consumables to the installed base of users. This provides amazing economics for a business that can grow its installed base.
Nanosonics has said their Q4 and thus FY20 installed base growth may be impacted by direct access to hospitals. Prior to this, their global installed base grew 17% in the last 12 months and 8% in the last 6 months.
Magellan Financial Group Ltd (ASX: MFG)
Magellan has been an incredible investment since it was founded in 2006 by Hamish Douglass and Chris Mackay. Over the last 15 years, the Magellan share price has provided total returns of nearly 35% per annum.
Magellan offers two market-leading strategies, global equities and global listed infrastructure. The business has multiple funds on offer on the ASX and earns revenue through management fees and the like.
The share price is currently down 21% from its 14 February highs.
Resmed Inc (ASX: RMD)
Resmed is one of the few businesses to have benefited from the coronavirus pandemic, but that doesn’t mean it isn’t a great buy for the long term.
The medical device company has a large total addressable market, with a focus on sleep apnea. Sleep apnea is majorly under-diagnosed, meaning education is important. As more people become aware of the condition, Resmed could grab market share in a growing market thanks to its high-quality products.
Further to this, the company has more recently looked at data and analysis as growth drivers. The share price is currently 10% below its 20 February highs, presenting a nice long term entry point.
Foolish bottom line
It’s worth noting that I own two of these ASX 200 shares, despite being in my mid-20s. Why? Because they are high-quality businesses with a proven track record over the long term.
Here are some other high quality shares to invest your hard-earned capital.
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More reading
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Lloyd Prout owns shares of Nanosonics Limited and Resmed Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Nanosonics Limited. The Motley Fool Australia has recommended Nanosonics Limited and ResMed Inc. 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.
The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Nanosonics Limited. The Motley Fool Australia has recommended Nanosonics Limited and ResMed Inc. 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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