3 ASX shares to dominate in the 2020s – Motley Fool Australia

Were nearly into a new decade and its a good idea to think about which shares are going to do well for years into the future and base our investment decisions on that long-term thinking.

Its impossible to know what share is going to do well next week or next month, all we can do is judge what is a good share price to buy at.

Were nearly into a new decade and its a good idea to think about which shares are going to do well for years into the future and base our investment decisions on that long-term thinking.

Its impossible to know what share is going to do well next week or next month, all we can do is judge what is a good share price to buy at.

When you think of investments in terms of years its much easier to get a grip on where the earnings are headed and where the share price is probably going to go. Its also good when you can find businesses themselves that are thinking long-term.

These three shares are ones Id want to buy for their high chance of dominance in the 2020s:

Altium is aiming to become the dominate provider of electronic PCB design software. Its offering is mission critical for various organisations to design their products or machinery to work effectively.

Management of Altium are aiming to dominate the PCB software industry like Microsoft changed and dominated the Office software space. Thats why the company is aiming for 100,000 Altium Designer subscribers over the next five years which should help generate US$500 million of revenue.

The great thing about a business like Altium is that as its revenue grows it costs dont grow as fast, leading to growing profit margins and increasing profits.

Altium is also aiming to keep its balance sheet debt free whilst growing dividends for shareholders. Its a great business for a number of reasons.

If there has been one business on the ASX that has shown what brand power can do, its A2 Milk. It has created a powerful image in the publics mind as being higher-quality than its competitors, which allows it to charge higher prices and generate higher returns.

It has become a huge player in Australia and now its got its eyes set on the US and further growth in China. Then theres every other country that A2 Milk isnt currently being sold in.

I think that A2 Milk has a very long growth runway, despite its years of growth already. New products and new countries could mean that A2 Milk is one of the best non-tech ASX shares to buy today for the long-term.

You wouldnt think that a building products business could produce large returns, but its generating long-term consistent growth which makes excellent compounding returns.

Its industrial property trust continues to grow in value whilst also seeing rising rental profit. Its investment in Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) continues to deliver rising earnings and dividends.

What Im most excited about is Brickworks US expansion America is a huge market and Brickworks has rapidly built a market-leading position in the north east of the country.

Brickworks should also benefit in the shorter-term as Australias construction cycle swings back to good times again.

I think each of these businesses are on track to deliver excellent returns in the 2020s. Brickworks could deliver the most dependable returns because of its diverse divisions, but I think if things go Altiums way it will generate the largest returns because of the rapid growth of the technology and its growing profit margins.

If youre after some more market-beating ideas Id definitely want these top stocks in my portfolio.

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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 Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of A2 Milk. The Motley Fool Australia has recommended Brickworks. 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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3 ASX shares to dominate in the 2020s - Motley Fool Australia

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