If you are fortunate enough to have $10,000 sitting in your savings account and have no immediate use for it, I would suggest you consider putting it to work in the share market.
This is because the potential returns on offer are vastly superior to the interest rates of 0.05% per annum that most bank accounts offer right now.
But where should you invest these funds? I would be buying one of these high quality ASX 200 shares:
a2 Milk Company Ltd (ASX: A2M)
The first place to consider investing $10,000 into is a2 Milk Company. It is one of the leading infant formula and fresh milk companies in the ANZ region and has been growing very strongly in recent years. The good news is that I believe it has the ability to continue its strong growth for a long time to come thanks to increasing demand for its infant formula products in China and the expansion of its fresh milk footprint in North America.
In addition to this, I like the company due to its extremely strong balance sheet, high levels of return on equity, and strong brand power in China. The latter should help the company when competition in the a2-only market increases. Whereas its strong balance sheet gives a2 Milk Company the firepower to make earnings accretive acquisitions to boost its future growth.
Appen Ltd (ASX: APX)
Another quality option for that $10,000 could be Appen. It is the global leader in the development of high-quality, human annotated datasets for machine learning and artificial intelligence (AI). The company has a crowd-sourced team of over 1 million skilled contractors powering the industry’s most advanced AI-assisted data annotation platform.
I believe a testament to the quality of this platform is its customer base. It has helped the likes of Facebook, Microsoft, and Apple with their AI models. The latter includes work on the tech giant’s smart assistant, Siri. Pleasingly, spending on machine learning and AI is expected to continue growing significantly over the next decade. Given its leadership position, I feel this bodes very well for its future growth.
We hear it over and over from investors, “I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I’d be sitting on a gold mine!” And it’s true.
And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!
*Extreme Opportunities returns as of June 5th 2020
More reading
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- Is the Super Retail share price cheap today?
- Down 5% in 1 day: Are Bendigo and Adelaide Bank shares a buy?
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of A2 Milk and Appen Ltd. 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 post Where to invest $10,000 into quality ASX 200 shares appeared first on Motley Fool Australia.
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