One of the most important large cap equity indices is the S&P/ASX 50 index. It represents 50 of the largest and most liquid shares listed on the ASX by market capitalisation.
Among these 50 companies are a number that I believe are outstanding long term investment options. Three ASX 50 shares that I would buy today are listed below:
BHP Group Ltd (ASX: BHP)
I think BHP is an ASX 50 share to consider buying. I believe the mining giant is the most outstanding option in the resources sector. This is due to the diversity of its world class operations and their extremely low costs. The latter means that BHP is able to fully benefit from favourable prices of many commodities it produces such as iron ore. I believe this leaves it well-placed to generate strong free cash flows again this year and in FY 2021. And given how strong its balance sheet is, this is likely to mean generous dividends being paid to shareholders.
CSL Limited (ASX: CSL)
A second ASX 50 share to look at is biotherapeutics giant CSL. I think CSL is the highest quality option on the index and well-placed to deliver solid earnings growth over the next decade. This is due to its leading and lucrative therapies, growing plasma collection network, and its impressive research and development (R&D) pipeline. The latter contains a number of therapies which have the potential to generate billions of dollars in sales over the next decade if their trials are successful.
Goodman Group (ASX: GMG)
A final ASX 50 share to consider buying is Goodman Group. It owns, develops, and manages industrial real estate across several countries. I’m a big fan of the company because of its high quality portfolio and exposure to markets with very positive long term outlooks. The latter includes its exposure to ecommerce through relationships with giant such as Amazon, DHL, and Walmart. I expect these assets to be in demand for a long time to come.
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More reading
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. 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.
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