Top class ASX blue chip shares are definitely worth thinking about.
They are businesses that have already been around for a long time and are likely large players in their industries, perhaps the biggest.
I think the best ones still have good growth potential for the long-term:
Betashares Nasdaq 100 ETF (ASX: NDQ)
This exchange-traded fund (ETF) is traded on the ASX. But it actually gives investors exposure to some of the world’s largest blue chips that are listed in the US.
Businesses like Apple, Microsoft, Alphabet (Google), Facebook, Netflix, Amazon, PayPal, Adobe, Nvidia and so on are in the portfolio. They are innovating in their respective sectors.
These are high-performing businesses that have been growing for a long time. But the collective profit is still going up at a strong rate, which is helping the share prices.
The NDQ ETF has performed very well over the last five years, with an average net return per year of 27.2% after management fees of 0.48% (which seems fairly reasonable). I certainly wouldn’t expect the next five years to be as strong as the last five.
But, the quality of the underlying businesses in this ETF’s portfolio (and those holdings can steadily change over time) may mean that this is a very high quality idea for the long-term.
Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)
WHSP is one of the oldest businesses on the ASX. It listed over a century ago. This certainly shows it has great longevity.
It operates as an investment house, which means it’s a business which invests in other businesses.
The businesses that it’s invested in also adds to the blue chip status of the company. Some of its largest investments include TPG Telecom Ltd (ASX: TPG), Brickworks Limited (ASX: BKW), Bki Investment Co Ltd (ASX: BKI), Commonwealth Bank of Australia (ASX: CBA), Woolworths Group Ltd (ASX: WOW), Macquarie Group Ltd (ASX: MQG) and Wesfarmers Ltd (ASX: WES).
Not only has the blue chip ASX share outperformed the ASX 200 over the long-term, but it has also grown its dividend every year in a row since 2000. That’s a really strong record.
After the upcoming acquisition of Milton Corporation Limited (ASX: MLT), WHSP will have a big war-chest of capital to diversify further into things like international shares and private equity.
