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Why I would buy Ramsay and this ASX blue chip share

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If you’re looking to add some ASX blue chip shares to your portfolio, then I would suggest you consider the two listed below.

Here’s why I think they are among the highest quality options for blue chip investors to choose from right now:

CSL Limited (ASX: CSL)

I continue to believe that this biotherapeutics giant is the highest quality company on the Australian share market. This is due to the quality of its operations, talented management team, and its high level of investment in research and development activities. In respect to the latter, the company is pouring in almost US$1 billion into its research and development this year.

Historically, these investments have generated very high returns and helped cement its position as a leader in its field. I expect this to remain the case over the 2020s and for its in-demand therapies and vaccines to underpin strong earnings growth over the decade.

Ramsay Health Care Limited (ASX: RHC)

Another blue chip share to consider buying is Ramsay Health Care. Although near term trading conditions are likely to be challenging because of the pandemic, I believe it is worth looking beyond this and focusing on the long term. This is because Ramsay’s world class network of private hospitals appear perfectly positioned to benefit from the expected increase in demand for healthcare services in the future due to ageing populations and increased chronic disease burden.

In addition to this, Ramsay has a long history of making earnings accretive acquisitions. The most recent being the acquisition of Capio AB in Scandinavia in 2018. I believe there’s a strong chance it will follow this up with further acquisitions in the coming years that open it up to new markets and support its growth. Overall, I feel this could mean the Ramsay share price provides investors with strong total returns over the 2020s and beyond.

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

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia has recommended Ramsay Health Care Limited. 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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