These are the ASX blue chip shares I'd buy today

If I were looking to buy ASX blue chip shares for my portfolio, these are the ones I'd buy today including Brickworks Limited (ASX:BKW).

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If I were buying ASX blue chip shares today, I'd choose the ones I'm going to write about in this article.

There isn't an official definition of a blue chip. For me, it's a sizeable business that is a leader in its industry that has been around for a while. It could also be described as a business that can keep doing well in good times or bad.

With that in mind, I think these ASX shares fit the blue chip description:

A2 Milk Company Ltd (ASX: A2M)

A2 Milk one of the leading infant formula brands in the Asia Pacific region. The company has grown strongly over the past five years as it grows its market share and international distribution network. When I think of infant formula, the first brand that comes to mind is A2 Milk.

The A2 Milk share price has fallen 15% this week and it's down 25% since 18 August 2020.

I think it can be smart to take advantage of short-term problems and temporary share price falls.

Whilst the ASX blue chip share is expecting revenue to fall in the first half of FY21, I strongly believe FY22 and onwards will show pleasing growth. Remember, share prices often move before we learn of the actual earnings.

The USA and Chinese markets look very promising over the longer-term. A2 Milk is still expecting overall revenue growth in FY21, with a revenue range of NZ$1.8 billion to NZ$1.9 billion. That would represent growth of between 4% to 10%, up from NZ$1.73 billion in FY20.

Brickworks Limited (ASX: BKW)

Brickworks is one of the country's leading building products companies. It's the national leader for bricks. It also produces and sells a number of other products where it has a good market position. Those other categories include: roofing, precast, masonry and paving.

The ASX blue chip share has been growing for decades as it expands it product range. The joint venture cement terminal, Southern Cross Cement, has just been commissioned and Brickworks owns 33% of this business. Brickworks thinks this joint venture has the lowest cost position and lowest capital invested of all south-east Queensland suppliers.

Brickworks is also the market leader for bricks in the north east of the US after recent acquisitions. The company has closed a plant there, which was part of the plan to improve efficiencies across the US network.

The ASX blue chip share's profit could benefit strongly from a rebound if COVID-19 impacts subside sooner rather than later.

Brickworks also has strong, reliable investments. It has a 50% stake of a quality industrial property trust which will soon count Coles Group Limited (ASX: COL) and Amazon as tenants. Brickworks also owns around 40% of quality investment house Washington H. Soul Pattinson and Co. Ltd (ASX: SOL). These two assets helped stabilise the Brickworks share price during the crash earlier this year.

Tassal Group Limited (ASX: TGR)

Tassal is fairly small, but it's the Australian market leader of fish in the country and it has been operating for over 30 years, so I think it can count as an ASX blue chip share.

FY20 was another solid year for the company with revenue rising, operating net profit after tax (NPAT) growing 13.3% and statutory net profit jumping 18.3%.

It wasn't too long ago that Tassal expanded into the prawn industry. Now it has two fish sectors that it can generate growth with, which is attractive in my opinion. Diversification is a wise idea. 

In FY20 it had a prawn harvest of 2,460 tonnes. In FY21 it's expecting a prawn harvest volume of 4,000 tonnes.

The Tassal share price hasn't recovered yet from the COVID-19 crash, it's still down around 20%. For a growing business, that suggests it could be a good time to buy. As a bonus, it offers a partially franked dividend yield of 5%.

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 Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of A2 Milk and COLESGROUP DEF SET. 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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