BHP Group Ltd (ASX: BHP) shares and Commonwealth Bank of Australia (ASX: CBA) shares have both rallied strongly in February after releasing solid half-year results. That naturally raises the question: Have investors missed the opportunity?
My view is no. While some of the easy gains may already have been made, I still believe both shares deserve a place in a balanced long-term portfolio.
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BHP shares
BHP's half-year update reinforced why it remains such a core holding for many investors. The company continues to generate strong cash flow from its diversified portfolio, particularly from copper and iron ore.
What also stood out to me was the announcement of a US$4.3 billion silver streaming agreement with Wheaton Precious Metals. Under the deal, BHP receives a significant upfront payment in exchange for a portion of future silver production from Antamina. As outlined in the company's release, the agreement "maximises shareholder value by unlocking capital from a non-core commodity" and allows BHP to reallocate funds toward "high-return growth projects and shareholder returns."
I like this move. It shows disciplined capital management. BHP is effectively monetising a by-product while retaining full exposure to its key commodities, including copper. For me, that reinforces the long-term investment case rather than detracting from it.
Yes, the share price is near recent highs. But BHP's exposure to copper, which is central to electrification and energy transition themes, still gives it structural growth potential. In my opinion, that makes it more than just a cyclical trade.
CBA shares
CBA also delivered a strong half-year result. Cash NPAT rose 6% on the prior corresponding period, and the bank declared a fully-franked interim dividend of $2.35 per share.
Return on equity remained peer-leading at 13.8%, and the CET1 capital ratio sits at a robust 12.3%, well above regulatory minimums. Those numbers matter. They underline the bank's strength and resilience.
I know many brokers argue that CBA looks expensive relative to its peers. And on traditional valuation metrics, it does trade at a premium. But I believe that premium reflects quality. Its deposit franchise, technology investment, and scale advantages are difficult to replicate.
If someone is building exposure to the banking sector and wants the highest-quality operator, I still think CBA is the logical choice.
Some gains are gone
It is true that buying after a rally can feel uncomfortable. The sharp bounce this month likely means some of the short-term upside has already played out.
But I do not invest in either BHP or CBA for a few weeks of price action. I see them as long-term holdings that can generate income, reinvest capital effectively, and deliver steady compounding over time.
As part of a diversified portfolio, I still view both shares as buys today.
Foolish Takeaway
No, I do not think it is too late to buy BHP or CBA shares. While the recent rally may have captured some quick gains, both businesses continue to execute well and generate strong cash flows. For long-term investors, I believe they remain quality core holdings.
