I believe that buying quality ASX 200 shares is the best way to build your wealth over the long term. This is especially this case with interest rates looking to remain at historic lows for several years to come.
Here we look at 2 ASX 200 shares that I believe could make good additions to your share portfolio right now. Here's why I recommend them:
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2 ASX 200 shares to add to your portfolio
TPG Telecom Ltd (ASX: TPG)
TPG has struggled in recent years. This is partly due to the tight operating margins it faced when purchasing wholesale fixed broadband services from the National Broadband Network (NBN). This is reflected in its NBN average revenue per user (ARPU) figure. NBN ARPU has been steadily declining in recent years. It has dropped from $67.4 per month in 1H19 to $66.4 per month in 1H20.
However, I believe that TPG's merger with Vodafone places it in a position to turn its fortunes around and drive higher profitability. TPG-Vodafone is now more strongly placed to compete with its two largest operators in the Australian telco market: Telstra Corporation Ltd (ASX: TLS) and Optus. In particular, the newly merged entity is well positioned to roll out a competitive 5G offering on Vodafone's existing nationwide mobile network.
Transurban Group (ASX: TCL)
Transurban has unsurprisingly seen a reduction in traffic on its toll roads during the coronavirus pandemic. This triggered a sharp decline in it share price during the early phase of the crisis. The Transurban share price fell from $16.33 on 11 February to $10.50 on 20 March, a decline of 36%.
However easing of COVID-19 restrictions is resulting in a gradual recovery in traffic on Transurban's tollways in local markets over the past few months. The company reported a steady recovery in traffic across its Australian operations, from mid April up until late June.
Melbourne of course is now in full lockdown mode again, and this will definitely slow down Transurban's recovery over the rest of the year. However, I still remain optimistic about Transurban's long-term future. The coronavirus pandemic will eventually subside, with traffic levels returning to normal. Furthermore, Transurban's two largest area of operation, Sydney and Melbourne, both have fast growing populations. They also both have expanding road systems that may require additional toll roads in the years to come.
With the Transurban share price well below pre-COVID-19 levels, I believe that now could be a good opportunity to snap up some shares in this toll-road operator.
Foolish takeway
TPG and Transurban are two quality ASX 200 shares that I would be happy to add my portfolio right now. Both have faced recent challenges, however are now well placed for long-term growth.
