The Motley Fool

2 quality ASX shares to buy with $2,000

If you have a spare $2,000 available to help build your ASX share portfolio, there are 2 quality companies that I think are worth considering.

Here’s why Blackmores Limited (ASX: BKL) and Ansell Limited (ASX: ANN) are in my buy zone right now.

Blackmores

Blackmores is a quality ASX share with a familiar brand name. The company’s range of vitamins, minerals and herbal and nutritional supplements now extend beyond Australia and New Zealand to Asia.

The Blackmore’s share price has not performed particularly well in the past 12 months. In fact, it has gone slightly backwards during that time.

Blackmores has experienced strong demand for its immunity products in recent months. However, this has been offset by weaker demand in other areas of its business business. In particular, its Chinese operations have not performed as well as expected.

However, Blackmores now has a new Asian expansion strategy is place. Hopefully, this will better position the company for stronger growth in the year or two ahead. With its share price well below pre-COVID 19 levels in February, now could be a good time for patient investors with a long-term investment horizon to purchase shares in Blackmores. 

Ansell

Ansell manufactures gloves and protective personal equipment in the industrial and medical markets. The company has seen strong demand for its hand and body protection products during the coronavirus pandemic. This product range has been been industry-certified for protection against a range of infections and viruses such as COVID-19.

The strong demand is reflected in a positive upward trend in the Ansell share price in recent months. The Ansell share price has risen from $21.43 on 23 March to $39.84 in mid-morning trade today. That’s an increase of more than 85%.

Despite this strong recent rise, I believe there is still potential for above average shareholder returns in the the next few years. The demand for protective personal equipment in the healthcare segment is only going to rise over the next decade. And Ansell is well-positioned to serve a number of regional markets with its product range. Ansell has an entrenched market position, with sales operations in more than 50 countries around the globe.

Foolish Takeaway

Blackmores and Ansell are both quality ASX shares that I believe would be good additions to your share portfolio right now. Both companies have strong market positions in their operating market and strong growth potential over the next 3 to 5 years.

These 3 stocks could be the next big movers in 2020

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.*

In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

*Returns as of 6/8/2020

Motley Fool contributor Phil Harpur owns shares of Blackmores Limited. The Motley Fool Australia owns shares of and has recommended Blackmores Limited. The Motley Fool Australia has recommended Ansell 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.

Related Articles...