S&P/ASX 200 Index (ASX: XJO) shares are a good hunting ground for top ideas.

ASX 200 shares are big enough that they can probably survive any economy difficulties. But they’re small enough, outside of the ASX 20 at least, to have plenty of growth potential.

Here are three exciting ASX 200 shares I’d buy next week:

A2 Milk Company Ltd (ASX: A2M)

A2 Milk has been one of the best ASX 200 growth shares over the past few years. It has expertly created a portfolio of quality products which is really resonating with consumers in Australia and Asia. It’s still seeing excellent growth here and broad.

I’m particularly attracted to A2 Milk because of the ongoing geographical expansion of its distribution. It’s steadily growing its footprint in the US. It will soon also be generating earnings from Canada as well.

It’s a great ASX 200 share with an impressive profit margin. These are the types of businesses that just keep winning.

InvoCare Limited (ASX: IVC)

InvoCare is another business which is recognised for having a quality service. The funeral business runs the White Lady Funerals brand, as well as low-cost options.

Many other businesses have almost recovered to their pre-coronavirus highs. But not InvoCare. The ASX 200 funeral operator’s share price is still down 23% from 28 February 2020. It’s actually down 33% from the July 2019 share price.

Obviously the coronavirus restrictions won’t have helped FY20 earnings. But Australia and New Zealand have thankfully barely suffered any COVID-19 deaths. Indeed, it may have reduced other types of deaths (like car crashes and so on). Morbidly, this may just mean delayed revenue rather than lost revenue. 

The ASX 200 share is still exposed to the long-term ageing demographic tailwinds. In today’s low interest environment, this type of business should be more valuable than before.

Brickworks Limited (ASX: BKW)

Investing in unloved businesses when there’s a clear path for them to return to normal can be a good tactic.

There’s a lot of pessimism about the construction sector at the moment. I think that means it’s a good time to invest. The current slowdown will only be temporary. When the economy bounces back we’ll probably see construction return too.

The ASX 200 share is diversified across different building products, so some areas of the business will be able to make up for the others during this time.

Don’t forget about the defensive assets of the industrial property trust and the shares it owns of Washington H. Soul Pattinson and Co. Ltd (ASX: SOL). These provide reliable earnings and cashflow. 

Foolish takeaway

Over the next five years I think A2 Milk will be the ASX 200 share (in this article) to make the biggest return. It’s trading at a reasonable price for all of the growth that it may generate with its global aspirations. However, at a guess over the next four months (when investors will get to see the upcoming result in the next reporting season), I reckon InvoCare could be the best contrarian pick.

More reading

• 3 ASX shares for a stress-free life
• Where I’d invest $2,500 in ASX shares today
• Top brokers name 3 ASX 200 shares to sell next week
• Top brokers name 3 ASX 200 shares to buy next week
• How mum and dad investors are beating fund managers at their own game

Motley Fool contributor Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of A2 Milk. The Motley Fool Australia has recommended InvoCare Limited. 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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I think some ASX shares are capable of providing people with an (economic) stress-free life.

All businesses may see some volatility from time to time. That’s just what the share market is – different buyers and sellers deciding what price they’re happy to transact at.

Some share prices may be very volatile like Afterpay Ltd (ASX: APT) and Qantas Airways Limited (ASX: QAN).

But I think there are some ASX shares can provide more of a stress-free life:

CSL Limited (ASX: CSL)

CSL may be the most consistent blue chip on the ASX. Health and sickness isn’t really decided by economic cycles, so demand for CSL’s products is pretty consistent. Indeed, the company is one of the ones involved in trying to solve the coronavirus problem for the world.

The company has reaffirmed its profit guidance for FY20 and it’s steadily growing its earnings year after year. It’s a very reliable ASX share.

I really like that CSL is continually investing into research and development which will open up future earnings streams.

Magellan Global Trust (ASX: MGG)

This is a listed investment trust (LIT) which invests in the world’s best businesses. I know I can sleep better at night being invested in high-quality businesses rather just cheap ones.

Some of the businesses it’s invested in right now are: Alibaba, Alphabet, Microsoft, Tencent, Facebook, Visa, Mastercard and Reckitt Benckiser. These aren’t ASX shares, but we can get indirect access to them on the ASX.

Its portfolio is set up to be defensive in ‘normal’ market declines. The businesses it’s invested in are growing over the long-term too.

I like that sometimes we get the opportunity to buy Magellan Global Trust at a net asset value (NAV) discount of more than 5%.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Soul Patts could be one of the easiest ASX shares to be invested in for the long-term. It’s an investment conglomerate that has been operated for over a century. It will probably still be around long after we’ve looked at our portfolios for the last time.

It’s invested in a wide array of different businesses like TPG Telecom Ltd (ASX: TPM), Brickworks Limited (ASX: BKW) and Clover Corporation Limited (ASX: CLV). It also has some unlisted assets like swimming schools, agriculture and soon (reportedly) regional data centres.

The ASX share isn’t likely to produce huge returns after decades of strong growth, but it could outperform the index whilst paying an ever-growing dividend.

Foolish takeaway

Each of these ASX shares has long-term growth prospects but they’re also defensive. At the current prices I think I’d probably go for Soul Patts because I’m not sure US share prices are great value right now.

More reading

• 3 top ASX 200 shares to buy next week
• Where I’d invest $2,500 in ASX shares today
• How to replace your entire wage with dividends
• Invest like Warren Buffett with these ASX 200 shares
• 3 ASX dividend shares for retirees

Tristan Harrison owns shares of MAGLOBTRST UNITS and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Clover Limited and CSL Ltd. The Motley Fool Australia owns shares of and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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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