A lot of popular blue chip shares such as private hospital operator Ramsay Health Care Limited (ASX: RHC) and conglomerate Wesfarmers Ltd (ASX: WES) have been big disappointments for investors over the last couple of years.
Unfortunately, I'm not overly convinced that things will be any better for those two shares over the next couple of years either.
So rather than buy them, I would focus on the three blue chip shares listed below which I think could be the best on the local market. Here's why I like them:
BHP Billiton Limited (ASX: BHP)
With the global economy growing strongly, I expect BHP Billiton to benefit greatly from increasing demand for the commodities it produces for at least the next couple of years. This is likely to lead to solid profit growth, putting the mining giant in a position to increase its dividend or repurchase shares. Its shares may have run hard over the last couple of years, but I still believe there is a lot more left in the tank.
Cochlear Limited (ASX: COH)
This leading hearing solutions company could prove to be a great buy and hold investment thanks to ageing populations across the globe. As the global population ages, I believe demand for hearing products will increase significantly. As Cochlear has wide distribution of its highly regarded products, I expect the company could be in a strong position to profit.
CSL Limited (ASX: CSL)
I think CSL is arguably the highest quality company that Australia has to offer. And although its shares have gone gangbusters over the last two years, I don't for a second believe that it is too late to invest. Thanks to a lucrative pipeline of new products, its growing influenza business, and a strong core business, I believe CSL can continue delivering above-average earnings growth for the foreseeable future.
