While it can be tempting to just fill a portfolio to the brim with exciting growth shares, I think it is important to balance it out with some quality blue chip shares.
Blue chips are companies that are large, stable, and have a long track record of operating profitably. They’re also quite often the leader (or one of the leaders) in their industry.
But which blue chip shares should you add to your portfolio? Two which I would buy are listed below:
CSL Limited (ASX: CSL)
If you only buy one blue chip ASX share, then I would make it CSL. I believe this biotherapeutics giant is arguably the highest quality company Australia has produced and feel it could continue to be a market beater over the 2020s and beyond. CSL is made up of two businesses – CSL Behring and Seqirus. CSL Behring is a global biotechnology leader which offers the broadest range of quality plasma-derived and recombinant therapies in the industry. Whereas Seqirus is one of the world’s leading vaccines developers with a focus on influenza. Its name comes from the Latin for “’securing health for all of us.”
Due to their leading therapies and vaccines, growing plasma collection network, and burgeoning research and development pipeline, I believe CSL is well-positioned to grow its earnings at a solid rate over the next decade.
Goodman Group (ASX: GMG)
Another high quality blue chip ASX share to buy is Goodman. It is an integrated commercial and industrial property group which has expertly curated its portfolio over the last few years to give it exposure to industries experiencing positive tailwinds. These include industries such as logistics, food, consumer goods, the digital economy, and ecommerce.
It is the latter that I’m particularly positive on. Especially given its close relationships with the likes of Amazon, DHL, and Walmart. Overall, I believe this has positioned Goodman perfectly to deliver further solid earnings and distribution growth over the next decade.
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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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