2 quality ASX shares to buy for long-term growth

Are you looking to buy some quality ASX options for long-term growth?

With the current share market volatility, some investors may be thinking that investing in shares is too risky.

However, I think it’s important to keep in mind share market volatility does happen from time to time.

Shares also have the advantage of providing capital gains, provided that you have a long-term investment horizon.

Also, dividend-paying ASX shares can set you up with a handy additional stream of income along the way.

So, with that said, here are two of my current top picks for long-term growth.

Commonwealth Bank of Australia (ASX: CBA)

Our big 4 ASX banks have had a difficult few months.

There all have witnessed major share price decline due to the impact of lockdown restrictions caused by the coronavirus pandemic. 

However, the outlook of our big 4 banks appears a bit brighter, with restrictions now beginning to ease.

Commonwealth Bank is my pick of the big four retail ASX banks right now.

I prefer it to rivals: Westpac Banking Corp (ASX: WBC), National Australia Bank Ltd. (ASX: NAB) and Australia and New Zealand Banking Group Ltd (ASX: ANZ). 

I believe the Commonwealth Bank share price was sold off a bit too harshly over the past few months.

It tumbled from $91.05 in mid-February to end below $60 earlier this week. However, its share price has regained a bit of ground over the past week.

I think the bank is well-positioned to deliver relatively solid long-term growth, driven by a recovering housing market, once lockdown restrictions are further eased.

This provides long-term investors with a good buying opportunity in my mind.

Telstra Corporation Ltd (ASX: TLS)

Australia’s largest telecommunication provider has witnessed strong demand for its services throughout the pandemic.

Both its mobile and fixed broadband offerings provide essential services to businesses and consumers. There’s been a sharp increase in usage with many Australians being forced to work from home.

Also, more people are keeping in touch with family and friends online, or increasing their usage of streaming media services like Netflix.

In a recent market update, Telstra revealed that it is on track to achieve most of the goals that form part of its T22 strategy. This includes reducing underlying fixed costs by $2.5 billion annually by the end of FY22.

Telstra also announced that it will increase its overall network capacity and accelerate the rollout of its 5G network.

I feel that Telstra was, to some degree, unfairly caught up in the wider market sell-off in recent months.

I believe that this now provides a good buying opportunity for ASX buyers with a long-term investment horizon.

More reading

• What to watch on the ASX 200 next week
• Beat low interest rates with these ASX dividend shares
• How to be an ASX 200 share millionaire in 15 years
• 2 ASX shares to buy for strong retirement income
• Westpac isn’t ruling out negative interest rates in Australia

Motley Fool contributor Phil Harpur owns shares of Australia & New Zealand Banking Group Limited, Commonwealth Bank of Australia, Telstra Limited, and Westpac Banking. The Motley Fool Australia owns shares of and has recommended Telstra Limited. 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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