3 high-quality ASX 200 shares for beginners to buy and hold

For beginners, I think one of the most useful investing lessons is also one of the simplest.

Compounding can do a huge amount of the work over time.

That does not mean every investment will succeed. Share prices will fall, sentiment will change, and even good companies will go through difficult periods. But owning high-quality businesses for long stretches can give investors a much better chance of building wealth steadily.

The three ASX 200 shares in this article all offer something I think beginners should look for: strong market positions, long growth runways, and business models that can become more valuable over time.

Hub24 Ltd (ASX: HUB)

Hub24 is a financial technology business that plays an important role in the wealth management industry.

Its investment platform is used by financial advisers and their clients to manage portfolios, reporting, administration, and investment access in one place.

I think this is a great example of a business benefiting from a long-term industry shift.

Financial advice is becoming more professional, more technology-driven, and more focused on efficiency. Advisers need platforms that help them serve clients well without being buried in administration. Clients also expect better visibility and smoother digital experiences.

Hub24 sits in the middle of that change.

What I like is that its growth is linked to funds flowing onto its platform. If it continues winning market share and attracting advisers, the business can keep expanding without needing to reinvent itself every few years.

There are risks. Market downturns can affect funds under administration, competition is strong, and valuation still needs to be considered. But I think Hub24 has the type of scalable model that can reward patient investors if it keeps executing.

For beginners, it offers exposure to the growing wealth management industry without needing to pick a bank or fund manager directly.

ResMed Inc. (ASX: RMD)

ResMed is one of the strongest healthcare businesses on the ASX in my view.

The company develops devices, masks, software, and connected care solutions for people with sleep apnoea and other breathing-related conditions.

I think the investment case starts with the size of the problem.

Sleep apnoea remains underdiagnosed around the world. Many people who could benefit from treatment either do not know they have it or have not yet entered the healthcare system. That creates a long runway for ResMed as awareness improves, testing becomes easier, and more patients begin therapy.

I also like that ResMed is not just selling a one-off product. Devices, masks, software, data, and patient support can all work together to create a more complete healthcare ecosystem.

The share price has been volatile, especially with investor debate around weight-loss drugs and their possible impact on sleep apnoea demand. But I think the bigger picture is still attractive.

Healthcare demand tends to be more durable than many parts of the economy, and ResMed has a global position in a large market that still has significant room to grow.

That makes it a share I think beginners could buy with a long-term mindset.

Goodman Group (ASX: GMG)

Goodman is another ASX 200 share I would consider for a beginner’s portfolio.

The company owns, develops, and manages high-quality industrial property. Its assets are used by customers involved in logistics, warehousing, ecommerce, and increasingly, data centres.

I think Goodman is interesting because it is tied to how the modern economy works behind the scenes.

Consumers expect faster deliveries. Businesses need efficient supply chains. Technology companies need more infrastructure to support cloud computing and artificial intelligence. Goodman provides the physical real estate that can support those trends.

The company has also built a strong reputation for capital discipline and development expertise. That is important because property investing can be risky when debt, interest rates, and development costs move against investors.

Goodman is not immune from those pressures. But I think its asset quality, global footprint, and exposure to structural demand give it a strong long-term position.

Foolish takeaway

Beginners do not need to look hard for shares to build wealth.

I think Hub24, ResMed, and Goodman are all high-quality ASX 200 businesses with clear growth drivers and strong positions in attractive markets.

They will not rise every year, and valuation still matters. But for investors who want to start with businesses that can compound over time, I think these three shares are well worth considering.

The post 3 high-quality ASX 200 shares for beginners to buy and hold appeared first on The Motley Fool Australia.

More reading

• With no savings at 50, I’d follow Warren Buffett’s approach to build wealth
• 3 ASX 200 shares I’d buy and hold through any market cycle
• Why are Resmed shares lagging if the business keeps compounding?
• Should you buy ResMed shares at their 52-week low?
• 3 ASX ETFs that could be top picks for beginners

Motley Fool contributor Grace Alvino has positions in Hub24. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group, Hub24, and ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended Goodman Group and Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.