Coca-Cola Amatil Ltd & SEEK Limited: 2 blue-chip shares to buy for the long term

Credit: Bill Dan

Finding shares to buy and hold for the long-term can be a very tricky activity. You only have to look at the struggles which companies such as News Corp (ASX: NWS) and Myer Holdings Ltd (ASX: MYR) had with the rise of online advertising and shopping to see that this is true.

These former leaders in their respective industries have been reduced to mere players, and while no company is completely immune from changes in technology or consumer preferences, I believe the following two shares have a great chance of still being at the very top in 10 years’ time.

Coca-Cola Amatil Ltd (ASX: CCL)

In the next 10 years I expect Coca-Cola Amatil to have grown significantly. While the company may be subject to changes in consumer preferences, its distribution network is the finest there is. So if and when consumer preferences do change, it can respond by supplying appropriate products to market in an efficient way few distributors can dream of.

The potential growth in its Indonesian segment is one of the things that attracts me most to the Australian bottler. It has admittedly been a little on the sluggish side recently, but in time I believe it will become a big contributor to top-line growth.

I feel also that the company’s move into supplying alcohol, through its licensing agreement with Beam Suntory, is going to be another boost to the top line in the years ahead. The signs have been good so far, with the segment contributing around 15% of total revenue.

With the shares trading far closer to their 52-week low, than their 52-week high, it makes for a great entry point for long-term investors in my opinion.

SEEK Limited (ASX: SEK)

SEEK Limited is another company I expect to still be a market-leader in 10 years’ time. The days when hard-working Australians might have one job for life are long gone, with job changes happening more frequently. I don’t personally see this trend changing any time soon either, which is great news for SEEK and its shareholders.

But asides from just the local market, SEEK has its foot in the door of numerous international jobs markets. The most interesting one for me is China, where it has exposure through its stake in the rapidly growing Zhaopin website. There is talk of a takeover of Zhaopin, but I am hopeful the company will hold onto its stake for the long term and reap the rewards of this lucrative market.

As you might expect, the shares of SEEK are a little on the expensive side and trade at 30x earnings. But they are still around $2 off their 52-week high, so long-term investors could be lucky in being able to get in at this point.

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Motley Fool contributor James Mickleboro has no position in any stocks mentioned. Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. The Motley Fool Australia has no position in any of the stocks mentioned. 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 Bruce Jackson.

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