Want to invest $3,000 into ASX blue chips?

If you have $3,000 to invest into ASX blue chips then the 3 in this article could be solid ideas. One pick is A2 Milk Company Ltd (ASX:A2M).

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Do you have $3,000 to invest into ASX blue chips? I think the three shares I'm going to mention in this article could be good picks.

I'm going to pick from shares from the ASX 100. I think one of the 100 biggest businesses on the ASX count as blue chips.

Here are three ASX blue chips I think that could be good long-term ideas:

A2 Milk Company Ltd (ASX: A2M)

A2 Milk is one of the most promising growth shares within the ASX 100. The infant formula business has been growing impressively over the past five years and it's doing well even during the COVID-19 pandemic. Families still need nutrition. 

A few months ago the company announced that its revenue for the three months to 31 March 2020 was above expectations as consumers increased buying due to pantry stocking. Revenue for FY20 is expected to be in the range of NZ$1.7 billion to NZ$1.75 billion.

The revenue growth was so strong that it caused the expected earnings before interest, tax, depreciation and amortisation (EBITDA) margin to be higher than previous guidance. It's now expected to be in the range of 31% to 32%. Management haven't adjusted either the margin guidance or the margin guidance since it was given.

Even if the final quarter of FY20 isn't that strong, as was the case with Bubs Australia Ltd (ASX: BUB), I think A2 Milk has a very strong future as an ASX blue chip.

The company continues to steadily build its market position in Asia and the US. I'm pleased that the company will soon be making money from Canada after announcing an exclusive licensing agreement with Agrifoods. Canada is another big potential growth market over the long-term. 

A2 Milk is trading at 30x FY22's estimated earnings.

Altium Limited (ASX: ALU)

Altium has been one of my long-term preferred ASX growth shares because I think it has such a promising long-term future. It has grown into an ASX blue chip and I think it can continue to grow over the long-term.

The tech business is aiming to become the world's leading electronic software business – akin to how Microsoft dominated the office software space.

Altium has already built an impressive customer base including Qualcomm, Broadcom, Microsoft, HP, Lenovo, ABB, Siemens, Google, Bosch, Proctor & Gamble, John Deere, Tesla, Space X, Boeing and NASA.

Over the next five years the ASX blue chip is aiming for US$500 million of revenue and 100,000 Altium Designer subscriptions. The company has taken a short-term revenue hit due to COVID-19 by lowering prices to ensure that it could continue to build its customer base. Lower revenue in one year is worth it to gain multiple years of revenue from that client. Altium's software is sticky, clients are unlikely to move away once they're using it. 

Altium is trading at 50x FY22's estimated earnings.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Soul Patts may not be the biggest business on the ASX, but I definitely think it fits the description of being an ASX blue chip.

When I think of a 'blue chip' I would expect that business to have been around for a while. Soul Patts was listed in 1903. It's one of the oldest listed businesses in Australia.

It's an investment house that owns a variety of different businesses. It owns unlisted ones like resources, agriculture and swimming schools.

The ASX blue chip also owns stakes in listed businesses like TPG Telecom Ltd (ASX: TPG), Brickworks Limited (ASX: BKW), Australian Pharmaceutical Industries Ltd (ASX: API), Bki Investment Co Ltd (ASX: BKI) and Milton Corporation Limited (ASX: MLT). I really like the diversification on offer by Soul Patts. 

Soul Patts invests in long-term business investments, so it itself can be described as a long-term focused share. It's defensively positioned, many of its investments are essential for our society.

I think this ASX blue chip will be around for a long time after I check my portfolio for the last time. That's the type of investment I want to hold in my portfolio.

Foolish takeaway

I think these three ASX blue chips can produce strong returns over the long-term. Soul Patts would be my pick for income investors. A2 Milk may be the better pick for medium-term growth. I'd probably want Altium to be a bit cheaper before buying shares, under the current conditions.

Tristan Harrison owns shares of Altium and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Altium. The Motley Fool Australia owns shares of and has recommended Brickworks, BUBS AUST FPO, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of A2 Milk. 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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