I think there are plenty of good ASX200 shares that could fit right into any investor's portfolio.
The ASX200 has plenty of good quality businesses, I just think we need to filter out the ones that aren't worth our time. You may as well invest in BetaShares Australia 200 ETF (ASX: A200) if you're going to mostly invest in the ASX 20.
I believe there are plenty of opportunities in the ASX200 such as these two gems:
Brickworks Limited (ASX: BKW)
Some people may think of Brickworks as a mature construction materials business, but you probably don't know enough about Brickworks if that's your conclusion.
It has three, perhaps four, divisions. Yes, the building products division contains Austral Bricks, Austral Masonry, Austral Precast and so on. And this is a high-quality segment of the company which has a bright long-term future with Australia's growing population, urbanisation and generation. But it is facing slower growth due to the Australian economic slowdown.
However, its 'Land and Development' business looks to maximise the value of surplus land created by the Building products business. This segment is steadily growing rental income as it builds properties on its land and leases them to industrial tenants. This division makes up a fair amount of the underlying value of Brickworks' shares.
The third main division is that it owns over 40% of Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), which has acted as a consistent provider of dividends for the fairly volatile building products business.
Brickworks has also recently acquired the fourth largest brick manufacturer in the US. Brickworks will likely invest significantly in this business over the next three to five years, where it could become a major player and materially improve Brickworks' growth outlook.
It's trading at 15x FY20's estimated earnings.
Costa Group Holdings Ltd (ASX: CGC)
Costa is Australia's largest horticultural business, it grows avocados, tomatoes, mushrooms, citrus fruit and berries.
The business has put the shareholders on a rollercoaster over the past year as earnings have disappointed, and investors have reduced how much they're willing to pay for Costa's earnings because of the cyclical nature of produce.
However, I think we're hopefully at the bottom of the bad news cycle now and the share price could go on to grow from here (except perhaps a short-term negative reaction after the report is released next month).
With an expanding amount of plantings across three continents and a good chance of further acquisitions, I think Costa could prove to be fertile hunting for brave medium-term investors.
It's currently trading at 16x FY20's estimated earnings.
Foolish takeaway
Both of these ASX200 companies have good outlooks over the medium-term with decent dividend yields and market-leading subsidiaries. At the current prices I'd rather buy Costa because sentiment could return if the worst is over, but I'd be happy to buy shares of both.
