Luckily for investors, the Australian share market is home to a good number of high quality blue chip shares to choose from.
Perhaps the hardest part is deciding which ones to buy over others. Two top blue chip shares that I think would be great options for a balanced portfolio are named below.
Here's why I like them:
CSL Limited (ASX: CSL)
It is almost impossible to recommend blue chip shares and not choose CSL. I continue to believe the global biotherapeutics giant is one of the best companies on the share market and that it would make a fantastic core holding in most portfolios. CSL is made up of the CSL Behring and Seqirus businesses.
CSL Behring is the global leader in plasma therapies, whereas Seqirus is the second biggest in the influenza vaccines industry. I believe both are well-positioned for long term growth thanks to their leading therapies and vaccines, talented management teams, and their lucrative research and development pipelines.
REA Group Limited (ASX: REA)
I think REA Group is another blue chip share for investors to consider buying right now. I was very impressed with the property listings performance during the housing market downturn and the way it still achieved strong profit growth despite the tough trading conditions.
And while the housing market is now under pressure because of the pandemic (especially given the Melbourne lockdowns), I'm optimistic that it will recover swiftly once the crisis passes. This could mean a rebound in property listings from early in 2021. This, combined with price increases, new revenue streams, and its cost cutting, could see REA Group's growth accelerate over the coming years. Overall, I think this makes REA Group a great blue chip to buy and hold for the long term.
