5 ASX 200 shares for trying to build wealth after 50

If you want to build wealth, then buy and hold investing with ASX 200 shares could be the answer.

That’s because the longer you are holding shares, the more time you have to benefit from compounding. This is where you generate returns on top of returns, which supercharges your wealth creation.

But which ASX 200 shares could be good options for investors looking to build wealth after 50? Let’s have a look at five options to consider.

ASX 200 shares to buy to build wealth

Firstly, when making buy and hold investments, you will want to look for companies with strong business models and sustainable competitive advantages.

Nothing is guaranteed in investing or business, but generally speaking these companies are the ones that are most likely to not only survive over the long term, but also thrive.

Warren Buffett has had a career of building wealth by investing in companies exhibiting these qualities, so it could pay literally to follow in his footsteps.

ASX 200 shares like biotherapeutics giant CSL Ltd (ASX: CSL), sleep disorder treatment company ResMed Inc (ASX: RMD), and cloud accounting platform provider Xero Ltd (ASX: XRO) are three great options.

All three are leaders in their fields, have talented management teams, operate in markets with high barriers of entry, and spend significant sums on research and development activities to maintain their market leadership.

At present, UBS has a buy rating and $330.00 price target on CSL’s shares, Citi has a buy rating and $34.00 price target on ResMed shares, and Macquarie has an outperform rating and $152.60 price target on Xero’s shares.

Two more shares to consider

A couple more great long-term options to build wealth with could be data centre operator NextDC Ltd (ASX: NXT) and property listings company REA Group Ltd (ASX: REA).

They both appear very well-placed to continue growing at a solid rate long into the future. For NextDC, this is being underpinned by the incredible and growing demand for data centre capacity due to the cloud computing boom.

Whereas for REA Group, its realestate.com.au platform continues to dominate the Australian market. It is now attempting to do the same in other international markets, as well as expand into other areas of the real estate market.

At present, UBS has a buy rating and $20.10 price target on NextDC’s shares, and Morgan Stanley has an overweight rating and $210.00 price target on REA Group’s shares.

The post 5 ASX 200 shares for trying to build wealth after 50 appeared first on The Motley Fool Australia.

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Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor James Mickleboro has positions in CSL, Nextdc, ResMed, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Macquarie Group, REA Group, ResMed, and Xero. The Motley Fool Australia has positions in and has recommended Macquarie Group, ResMed, and Xero. The Motley Fool Australia has recommended CSL and REA Group. 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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