The S&P/ASX 200 Index (ASX: XJO) had a solid year in 2024, rising by 7.5%. It was driven by Australian shares like Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd (ASX: NAB) and Westpac Banking Corp (ASX: WBC).
I don't think the ASX 200 is going to have as strong a year in 2025 unless the iron ore price substantially rises to help the profits and valuations of ASX mining shares like BHP Group Ltd (ASX: BHP), Fortescue Ltd (ASX: FMG) and Rio Tinto Ltd (ASX: RIO).
With various companies now trading on high valuations, such as multiple ASX bank shares and ASX tech shares, it's trickier to find opportunities.
However, I'm looking at two Australian shares as major opportunities to beat the ASX 200 in 2025 and over the long term, whether the index rises or falls.
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Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)
This business has a long-term track record of outperforming the ASX share market over the long term and falling less during times when the market slides.
It operates as an investment conglomerate that invests in a wide variety of assets and industries, such as resources, telecommunications, property, building products, farming, swimming schools, electrification, financial services, healthcare, and more.
The company has set up its portfolio in defensive sectors and generates reliable cash flow, supporting valuations in bear markets and dividend payments.
This Australian share has been listed for more than 120 years, proving its longevity. Its ability to invest in new shares or industries gives it the flexibility to adapt to whatever comes next financially or societally.
Soul Patts is also attractive for dividends. It has grown its annual ordinary dividend every year since 2000, which is a fantastic record for an ASX 200 share. It's the sort of investment that could be compelling for decades, in my eyes.
I think there's a good chance Soul Patts shares can outperform the ASX 200 in the medium term.
Brickworks Ltd (ASX: BKW)
Brickworks has a close affiliation with Soul Patts because of a cross-holding of shares between the two companies. Soul Patts and Brickworks have been partners for decades, which provides protection against corporate raiders.
The Soul Patts shareholding gives Brickworks stability during periods of weakness for the building products business.
We are currently experiencing a period of weakness in construction and renovation, largely due to the high cost of living and high interest rates. But it would be foolish to assume that Australia won't ever see a resurgence of building activity — I think Brickworks shares are an opportunity for FY26 and beyond when sentiment about the construction outlook could improve.
I'm particularly excited by the company's exposure to industrial properties with a trust it owns half of along with Goodman Group (ASX: GMG).
These properties are benefiting from trends like e-commerce adoption, data centre demand, and a rising population. This is driving up the value of the land and helping boost the rental potential of the properties. In my view, this is one of the best reasons to like this Australian share.
