3 ASX 200 shares with major competitive advantages

Fundies believe these ASX 200 stocks are well protected from their competition.
The post 3 ASX 200 shares with major competitive advantages appeared first on The Motley Fool Australia. –

Investment management professionals have weighed in on the S&P/ASX 200 Index (ASX: XJO) shares they think they could hold forever.

These are the stocks pros believe have strong competitive advantages and little to no competition.

So, without further ado, here are the 3 ASX 200 shares fundies believe are good buys for long term gains.

These ASX 200 shares have major market advantages

Macquarie Group Ltd (ASX: MQG)

Marcus Today founder Marcus Padley and Elston Asset Management director and co-founder Bruce Williams both singled out Macquarie as a stock they believe will continue to produce gains in the long term.

Padley told Livewire that he based his view on the stock on its ability to withstand disruption.

Additionally, Padley stated that there are only a few banks able to dominate the Australian market. Thus, Macquarie’s competition is limited.

Macquarie works to create cash from investment banking, and it is able to get a seat at the table of nearly any Australian corporate deal as it’s practically alone in its field.

Williams pointed out that, as a market facing stock, Macquarie’s revenue and profitability will be subject to volatility.

However, Williams believes that the institution’s proven to be capable of balancing risk and growth.

Williams also told the publication that Macquarie is continually innovating and its business model allows it to enter new markets as opportunities arise.

The Macquarie share price is up 0.0.9% this morning, trading at $203.34.

Cochlear Limited (ASX: COH)

Tribecca Investment Partners portfolio manager, Jun Bei Liu moved into the healthcare space with her pick.

She told the publication that she believes hearing device company Cochlear, is the ASX 200 stock that will continue to outperform all its competition.

Liu states that Cochlear’s products are better than its competitors. Hence, it retains its >60% market share.

Further, as the world’s population ages, demand for Cochlear’s technology will likely increase.

Additionally, Liu notes the company’s leadership team is strong and has demonstrated solid performance.

Though, the fundie believes Cochlear’s valuation might pose a short-term risk.

It’s a good day on the ASX for the Cochlear share price. It has increased 0.34% to trade at $224.30.

CSL Limited (ASX: CSL)

Finally, TMS Capital portfolio manager Ben Clark told Livewire his pick of an ultra-competitive ASX 200 share is CSL.

CSL is built on its blood collection business. Clark states CSL’s cornerstone activity only has 2 competitors worldwide.

Additionally, technological advances are unlikely to affect the business, and it will probably always be in demand.

Finally, Clark points to CSL’s culture, stating that when looking at long-term picks, company culture is important. Livewire quoted Clark as saying:

Businesses that can adapt, spot opportunities and morph to continue growing are who you want to back and CSL is a business that has always struck me as having best in class culture.

CSL’s stock is in the red today, alongside the ASX 200 Index. At the time of writing, the CSL share price has slipped 0.1% to $309.50, while the ASX 200 is down 0.4%.

The post 3 ASX 200 shares with major competitive advantages appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

More reading

Macquarie warns the next ASX market downturn could come as soon as February

Leading brokers name 3 ASX shares to buy today

Lockdowns are easing, but are CSL (ASX:CSL) shares out of the woods yet?

The Macquarie (ASX:MQG) share price has gained 40% this year. Is it still good value?

Is the Zip (ASX:Z1P) share price a buy now, or wait for later?

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended CSL Ltd. and Cochlear Ltd. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool Australia has recommended Cochlear Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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