Although not widely followed by investors, the S&P/ASX 50 index is one of Australia's most important large-cap equity indices.
It represents 50 of the largest and most liquid ASX shares by float-adjusted market capitalisation. These include some of the most well-known companies in the country.
And while I wouldn't be investing in all the shares on the index, I think there are a handful that would be fantastic options for investors.
Two ASX 50 shares I would buy today are listed below:
CSL Limited (ASX: CSL)
My favourite ASX 50 share is this global biotherapeutics giant. I think CSL would be a quality long term investment option due to its in-demand therapies, growing plasma collection network, and its burgeoning product pipeline. The latter is underpinned by the company's material investment in research and development (R&D) activities each year. CSL tends to invest somewhere in the region of 10% to 11% of sales into its R&D efforts. This resulted in the company investing a massive US$832 million in R&D across its businesses in FY 2019. And a similar level of investment will be made this year. I expect these investments to allow CSL to maintain its industry-leading position and support solid profit growth for years to come.
Goodman Group (ASX: GMG)
Another ASX 50 share to buy is Goodman Group. It is an integrated commercial and industrial property group which owns, develops, and manages high quality industrial real estate globally. Goodman Group's portfolio has been expertly curated over the last few years to give it exposure to industries experiencing positive tailwinds such as ecommerce, logistics, food, consumer goods, and the digital economy. I'm particularly positive on its prospects due to its exposure to the rapidly growing ecommerce market. It achieves this with relationships with the likes of Amazon, DHL, and Walmart. All in all, I believe Goodman Group is well-placed to deliver solid earnings and distribution growth over the next decade. This could result in the Goodman Group share price generating market beating returns over the period.
