TPG and 1 other ASX share to buy and hold for long-term growth

Looking for 2 ASX shares to provide you with above average shareholder returns over the long term?

There are never any guarantees with share investing. However, here's why I believe why the following two ASX shares have a better chance than most of achieving this goal.

TPG Telecom Ltd (ASX: TPG)

TPG now has a significantly stronger market position in the Australian telecommunications landscape since its merger with mobile operator, Vodafone.

TPG has been previously financially challenged over the past few years as a fixed broadband operator. This was mainly due to the lower retail margins it received from wholesaling broadband services on the National Broadband Network. However, following the merger with the local subsidiary of global mobile operator Vodafone, this now places TPG in a much stronger competitive position.

The TPG share price has lost a bit of ground since it was re-listed post the merger at the beginning of July. However, I think it is way too early to read anything into this trend just yet. I believe that TPG is well-placed for above-average shareholder returns over the next five years. Growth is likely to be driven from a combination of a competitive fixed broadband and 5G offering.

REA Group Limited (ASX: REA)

The REA Group share price fell heavily during the early phase of the coronavirus pandemic up to late March. However, the company's share price has rebounded strongly since then, recovering nearly all of those losses. It has risen from a low of $65.02 on 23 March to now be trading at $110.47.

Although the Australian housing market has been impacted by the pandemic, national house price falls have only been moderate since early this year. 

Further house price falls as well as further restrictions on sales activities, such as property open for inspections, may occur in the months ahead.

However, I believe that REA Group is well-placed for strong, long-term growth. In my opinion, REA Group has a much stronger market position than its main rival Domain Holdings Australia Ltd (ASX: DHG). REA Group is well-placed to tap into a rising demand for online property services over the next decade as our national housing market continues to grow.

Foolish Takeaway

TPG and REA Group are 2 ASX shares that I am confident are well-positioned for strong, long-term growth over the next five years. This is likely to lead to above average shareholder returns.