Buying and holding ASX 200 shares can be a powerful way to build wealth and retire early.
If equities are to form a crucial part of your retirement plans, obviously selecting the right shares to buy today is extremely important.
For example, the Xero Limited (ASX: XRO) share price has rocketed more than 400% higher over the last 5 years. Xero is a leading Australian tech company with a specialist, easy-to-use accounting software platform.
If you’re a long-term investor in this ASX 200 tech share, you’d be sitting on a tidy capital gain right now.
But Xero isn’t the only company with long-term growth potential on my radar. Here are a couple of my other favourite picks in the current market.
ASX 200 shares that could help you retire early
I like the look of NextDC Limited (ASX: NXT) for its potential growth trajectory.
The NextDC share price is up 51.7% this year alone and 333.9% in the last 5 years. Whilst this could mean NextDC has been overbought, I still think there’s further growth ahead for this Aussie data centre operator.
NextDC is a leader in the Australian data storage and security space. The ASX 200 tech share has been surging in 2020 as demand for its services has increased.
NextDC posted a $4.9 million half-year loss in February as it continues to re-invest in the business and fuel expansion plans.
It’s a risky play, but one that could have a big payoff if successful in the decades ahead.
Outside of the tech sector, I also like the prospects of Polynovo Ltd (ASX: PNV) right now.
Polynovo is an ASX 200 company that specialises in the treatment of burns and which also produces other biotechnology solutions.
The Polynovo share price is up an impressive 2,644% in the last 5 years including a 25.4% gain in 2020.
I think despite these gains, Polynovo shares could be set for more growth over the next decade.
Polynovo’s NovoSorb product is already active in an addressable $1.5 billion market, but planned applications for hernia devices and breast implants could boost this towards the $7.5 billion mark.
That leaves a lot of potential growth for the ASX 200 biotech share if it can execute its strategy and capture a larger market share.
Foolish takeaway
These are just a couple of ASX 200 growth shares on my radar for building a comfortable retirement. As always, it’s important to consider your own investment horizon and lifestyle goals when it comes to purchasing shares. Also, ensure you maintain a balanced portfolio to help maximise your return whilst minimising your risk exposure.
For more great options to invest in today, check out these 5 shares for under $5.
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
- Where to invest $10,000 in ASX 200 shares for 2030
- Why this fund manager believes PolyNovo shares are undervalued
- Best growth shares to buy with $4,000
- How to try and beat the market with ASX shares
- ASX 200 Weekly Wrap: ASX back in the green
Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Xero. The Motley Fool Australia has no position in any of the stocks mentioned. 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 How ASX 200 shares like Xero could help you retire early appeared first on Motley Fool Australia.
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