One the biggest advocates of buy and hold investing is legendary investor Warren Buffett. In the past, the Oracle of Omaha has famously quipped that his favourite holding period is “forever.” And given the success he has had over the last six decades, he could be onto something!

Mr Buffett clearly also has a penchant for blue chip shares rather than risky small caps. Countless blue chips have graced his portfolio through the years and can be found in it today.

With that in mind, listed below are two buy-rated blue chip shares that could be the sort of investments that Buffett makes. Here’s what experts are saying about them:

CSL Limited (ASX: CSL)

The first blue chip share to consider is CSL. It is one of the world’s largest biotechnology companies and regarded by many as the highest quality company on the Australian share market. It has consistently grown its sales and earnings at a solid rate for well over a decade and has been tipped to continue this positive form in the future.

This is thanks to its leading therapies, growing plasma collection network, the acquisition of Vifor Pharma, and its burgeoning research and development pipeline. This pipeline contains a number of therapies that have the potential to generate billions of dollars in sales over the next decade if their trials are successful.

The team at Citi is very positive on CSL. It has a buy rating and $340.00 price target on the company’s shares.

Goodman Group (ASX: GMG)

Another blue chip ASX share that Buffett could be a fan of is Goodman Group. It is an integrated commercial and industrial property group that owns, develops, and manages industrial real estate across the globe.

Goodman has been growing at a solid rate over the last decade thanks to its exposure to growing markets such as ecommerce. This has resulted in strong demand from fellow blue chip customers such as Amazon, Coles Group Ltd (ASX: COL) and Walmart.

And with this strong demand unabating, Goodman appears well positioned for sustainable growth over the 2020s.

Goldman Sachs is bullish on Goodman’s outlook. So much so, it has a buy rating and $25.40 price target on its shares.

The post Experts name 2 blue chip ASX shares to buy that Warren Buffett would love appeared first on The Motley Fool Australia.

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More reading

• The CSL dividend just got updated. How much will you be getting?
• The CSL share price is still trading just 10% above its COVID-crash low. Is it a buy?
• Fundie reveals the 2 ASX shares he’d buy and hold for 4 years
• Should all ASX investors be buying defensive shares right now?
• Why is the CSL share price on the slide today?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. 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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The Qantas Airways Limited (ASX: QAN) share price slid into the red on Friday, ending the day 0.19% lower at $5.24.

It comes amid the airline posting its sustainability report for 2022.

Fellow ASX airline share Air New Zealand Limited (ASX: AIZ) ended the day up 0.84%, while the S&P/ASX 200 Industrials Index (ASX: XNJ), of which Qantas is a part, closed down 0.24%.

Additionally, Qantas also posted its 2022 annual report on Friday. This revealed the company paid chief executive Alan Joyce $2.3 million last year, a rise of 15 per cent, as my Foolish colleague Seb reported.

Let’s go over the highlights of the sustainability report.

What did Qantas announce?

• 29 million single-use plastics removed
• 37.4% of women in leadership
• US$200M (AU$292.70M) Qantas and Airbus partnership for domestic sustainable aviation fuel (SAF) production
• 24% improvement in total recordable injury frequency rate (TRIFR)

Qantas stated that it had incorporated environmental, social and governance (ESG) policies into its financial framework, with a long-term view of decarbonising its fleet. This will be achieved partly by tying executive pay with its climate targets.

The airline is tackling climate change through the implementation of several strategies. These include improving the fuel efficiency of its fleet, with the end goal of using hydrogen propulsion technology. Another strategy is to offset its carbon emissions by investing in Australian and international projects that benefit their local communities.

A target of reducing emissions by 25% by 2030 was given as one of the first milestones. It also aims to reach net-zero emissions by 2050.

What did management say?

Qantas chairman Richard Goyder said:

This year, following the release of the Qantas Group’s Climate Action Plan, sustainability became one of the four key foundations for the Group, and one of the seven focus areas of the Group Corporate Strategy. As of this year, executive remuneration is also linked to a climate-related target.

CEO Joyce also commented:

In 2019, Qantas became only the second airline group in the world to commit to net-zero carbon emissions by 2050. In March this year, in the Qantas Group Climate Action Plan, we set out the steps we’ll take to get there, including an interim target of 25 per cent carbon emission reduction and a sustainable aviation fuel (SAF) target of 10 per cent in our fuel mix, both by 2030.

Joyce continued:

SAF is the key lever we have to reduce emissions, particularly while new low-emission aircraft technology is still decades away. In January, we started using blended SAF on the Kangaroo route between London and Sydney, and we signed a deal to uplift SAF from Californian ports from 2025.

Qantas share price snapshot

The Qantas share price is up around 2% this year to date. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is down around 9% over the same period.

The airline has a market capitalisation is $9.92 billion.

The post Qantas share price ends week in the red despite green update appeared first on The Motley Fool Australia.

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More reading

• Qantas share price edges lower amid Alan Joyce’s $2.3 million FY22 pay packet
• Could you be holding onto ‘zombie’ ASX shares hoping for new life?
• ‘Reckless?’ Why the $400 million Qantas share buyback is dividing experts
• Qantas share price falls alongside ASX 200 despite surging airfares
• Up 11% in a month, have would-be investors missed the flight on Qantas shares?

Motley Fool contributor Matthew Farley has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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Shares of Australia and New Zealand Banking Group Ltd (ASX: ANZ) are under the spotlight as the big ASX bank share tries to catch up with its rivals.

The bank has been working on transforming its operations by using technology to improve its customer service and accelerate change.

As reported by The Age, according to Macquarie Research and APRA, ANZ’s market share in housing declined by more than 100 basis points (or 1%) over the year to 31 July 2022.

The bank’s leadership team has been considering how to regain momentum and get the bank back to underlying growth.

A focus on technology

ANZ’s chair Paul O’Sullivan, who has been in the position since October 2020, said (according to the Australian Financial Review):

We’re transforming the bank to make sure that it’s able to lead the next phase. And I’m not ashamed of saying to the staff we should be aspiring to lead in what we do. What does that mean?

That means you’ve got to have a really modern technology capability internally, which reflects the speed at which society wants to engage and reduces friction. You’ve got to have a really deep understanding of the financial wellbeing needs of the community and how you meet them.

And you’ve got to be socially responsible and good at meeting community issues. And so, we get that right, then we set that up really well for the longer term.

However, O’Sullivan has acknowledged that customers are underwhelmed about ANZ Plus, though it’s the behind-the-scenes technology changes that are exciting people within ANZ.

O’Sullivan said the current situation within ANZ is like a “home renovation where you’ve knocked down the back of the house and your mates all think it’s just taking forever”. However, the ANZ leadership figure thinks it’s worth spending time on and getting right because it’s what ANZ could end up using for the next two or three decades.

The bank could have spent money on an off-the-shelf platform, but ANZ wants to be able to customise its offering for customers and do things that are “innovative”.

O’Sullivan said:

I think it’s the right decision. Invariably, you’re going to get a bit of a shellacking on the way through because it is different. It does take time, it’s been more complex. But once it’s done, coming back to the transformation, I think that puts us in a really strong position to be able to do things that are different and innovative with its customers.

Some brokers have suggested that ANZ is buying the banking division of Suncorp Group Ltd (ASX: SUN) to recapture some of the lost market share.

But, while O’Sullivan did acknowledge that the takeover increases ANZ’s exposure to households and increases exposure to Queensland, it’s not just about getting bigger for no reason – he believes it’s the right thing to do for the long-term interests of the business.

Recent broker rating

One of the latest brokers to have their say on ANZ is Macquarie, which rates it as a buy with an ANZ share price target of $24. That implies a small rise over the next year.

It thinks that banks can profit from increasing central bank interest rates and slower increases for savers.

The post ‘It’s a bit like a home renovation’: What does the future look like for ANZ shares? appeared first on The Motley Fool Australia.

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More reading

• Top brokers name 3 ASX shares to buy next week
• Why is the NAB share price diving more than the other big 4 ASX banks today?
• Why rising rates are a ‘sugar hit’ for ASX 200 bank shares: Macquarie
• Down 19% since April, is the ANZ share price in the buy zone?
• Savings or dividends? What these 3 ASX bank shares are offering for income

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Macquarie Group Limited. 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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Last week saw a number of broker notes hitting the wires once again. Three buy ratings that investors might want to be aware of are summarised below.

Here’s why brokers think investors ought to buy them next week:

Australia and New Zealand Bank Group Ltd (ASX: ANZ)

According to a note out of Macquarie, its analysts have upgraded this banking giant’s shares to an outperform rating with an improved price target of $24.00. Macquarie has become bullish on bank shares thanks to rising rates and slower term deposit repricing. It believes these pose upside risks to bank earnings estimates during the first half of FY 2023. In addition, it is worth highlighting that the broker is expecting a 6%+ dividend yield in FY 2023 from the bank. The ANZ share price ended the week at $23.02.

ResMed Inc. (ASX: RMD)

Another note out of Macquarie reveals that its analysts have retained their outperform rating and $38.70 price target on this sleep treatment company’s shares. This follows news that rival Philips is facing another product recall. Macquarie sees potential for ResMed to win market share from Philips thanks to this news. The ResMed share price was fetching $34.25 at Friday’s close.

Temple & Webster Group Ltd (ASX: TPW)

Analysts at Goldman Sachs have initiated coverage on this online furniture retailer’s shares with a buy rating and $7.55 price target. According to the note, the broker believes Temple & Webster is positioned for strong long term growth. It feels the company is best placed to be a winner in a category that favours scale players, requires a specialised approach to e-commerce, and has higher barriers to entry versus other retail categories. The Temple & Webster share price ended the week at $5.84.

The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

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More reading

• ‘It’s a bit like a home renovation’: What does the future look like for ANZ shares?
• Why did the Kogan share price leap 5% on Friday?
• ‘Material runway’: Goldman Sachs says Temple & Webster share price is a buy
• ASX better buy: Temple & Webster or Kogan shares?
• Top brokers name 3 ASX shares to buy today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ResMed Inc. and Temple & Webster Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia has positions in and has recommended ResMed Inc. The Motley Fool Australia has recommended Macquarie Group Limited and Temple & Webster Group Ltd. 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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