3 great ASX blue chip shares I'd buy

I'd buy quality ASX blue chip shares in the S&P/ASX 100 (INDEXASX: XTO) such as infant formula business A2 Milk Company Ltd (ASX:A2M).

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The S&P/ASX 100 (INDEXASX: XTO) has a number of quality ASX blue chip shares within its ranks.

The largest businesses in the ASX 100 are generally powerhouses of their industries and very hard to dislodge by competitors. Blue chips are seen as strong and worth investing in for the long-term.

However, I don't think some blue chips are worth investing in like banks when you can just go for an exchange-traded fund (ETF) with more diversification and growth on offer. 

There are some ASX blue chips worth buying for the long-term in my opinion, including these three:

A2 Milk Company Ltd (ASX: A2M)

A2 Milk could be the best ASX blue chip share to buy right now in my opinion. There are few ASX 100 shares that have as much growth potential as A2 Milk. The ones that do have a lot of growth potential are priced very highly.

At the current A2 Milk share price it's priced at 28x FY22's estimated earnings.

The company is increasing its reach in the US and Asia with its rising distribution network of stores across those two large markets. Revenue grew by around a third in FY20 and management are expecting another year of strong growth in FY21.

I like that the ASX blue chip share is looking to maintain an earnings before interest, tax, depreciation and amortisation (EBITDA) margin of around 30%. This balances the need to invest for growth whilst ensuring good ongoing profitability.

It still has a long growth runway in China and the US alone. Expanding in Canada, the rest of Asia and Europe could turn A2 Milk into a much bigger business.

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

I really like Soul Patts as an ASX share. The fact it has been listed since 1903 shows that the investment house isn't just another business. It's built to last and is defensively positioned. It's invested in many 'essentials' of the Australian way of life like telecommunications, swimming schools, agriculture and building products.

Soul Patts invests with a contrarian style and that has helped it outperform the ASX 100 over the long-term.

I think the current investments of TPG Telecom Ltd (ASX: TPG), Brickworks Limited (ASX: BKW) and Clover Corporation Limited (ASX: CLV) are well positioned to outperform. New investments like regional data centres could be a very good move with its long-term style.

The investment conglomerate is about to report its FY20 result which is likely to show some COVID-19 disruption. But I think the ASX blue chip share could be a solid long-term idea no matter what happens next.  

Magellan Financial Group Ltd (ASX: MFG)

I've been impressed with how Magellan has developed the business over the years since the GFC.

Magellan has managed to grow its funds under management (FUM) back to above $100 billion. I think that's a really good effort by the fund manager considering all of the disruption recently with COVID-19.

I think the news of the investment into Barrenjoey could turn out to be a really smart move if it turns out well. The investment bank seems to have a great initial team and could attract quality clients. Barrenjoey could be a very profitable investment for Magellan.

I'm also looking forward to seeing what the retirement product is. The ASX blue chip has been working on the product for quite a while.

The Magellan share price is currently trading at 20x FY22's estimated earnings. It also offers a partially franked dividend yield of 3.8%.

Foolish takeaway

I think each of these ASX 100 blue chip shares have the ability to beat the returns of the index over the long-term. I think A2 Milk could be the best performer of the three over the next five years with its international aspirations, though Soul Patts is a nice idea for an ultra-long-term buy.

Motley Fool contributor Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended 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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