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These are 2 quality ASX shares to buy with $2,000

So, you have some spare cash available to spend on ASX shares right now? Great!

Here are 2 which I think are worth considering: Bubs Australia (ASX: BUB) and Cochlear Limited (ASX: COH). Both are top-quality companies with compelling business models and entrenched market positions in their respective industry niches. I am also confident that both companies have strong growth potential over the next 5–10 years.

Bubs

Bubs is an Australian based producer of goat milk products. It has successfully built a portfolio of premium, high-margin brands. Bubs concentrate on infant formula products, but its product range also spans across organic baby food, cereals and toddler snacks, as well as adult goat dairy products.

This ASX share has already established an entrenched market position in the Australian market. Bubs is Australia’s only vertically integrated producer of goat milk formula. It holds an exclusive milk goat supply agreement with the largest goat herd in Australia.

Bubs have seen recent strong growth due to rising demand for its goat milk products. There has been a growing consumer trend towards alternative baby nutrition options, particularly goat milk which is easier for children to digest. Goat’s milk also has a higher calcium content and is less likely to result in skin and gut reactions. This results in better absorption of the milk’s nutrients, especially for babies.

Recent revenue growth for Bubs has been very strong. In Q3 FY20 to 31 March 2020, Bubs delivered a 67% increase in revenue to $19.7 million compared to the prior corresponding period.

Bubs is now targeting growth in the Asian market and already that strategy is starting to bear fruit. Chinese revenue soared 104% higher in the third quarter.

Cochlear

Another ASX share that I think is worthy of adding to your share portfolio is Cochlear.

Cochlear is a global manufacturer and distributor of cochlear implantable devices for the hearing impaired. Despite operating in a very small niche in the healthcare market, Cochlear has raised its profile over the last 2 decades to become an Australian household name.

Cochlear has been impacted by the coronavirus crisis due to a reduction in elective surgeries. In particular, Cochlear has suffered a significant decline in Cochlear implant surgeries in the US and Western Europe.

However, I believe the long term future for Cochlear remains very positive. As the proportion of the global population over 65 continues to grow, the demand for hearing products and solutions continues to rise. This demand is set to continue for the next few decades.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

*Returns as of June 30th

Phil Harpur owns shares of Cochlear Ltd. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of BUBS AUST FPO and Cochlear Ltd. The Motley Fool Australia has recommended BUBS AUST FPO and Cochlear Ltd. 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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