Not every quality ASX share is a good buy at every price.
That is how I am thinking about parts of the ASX 200 right now. There are still high-quality businesses I would be happy to buy and hold, but there are also some names where I think the share price has run ahead of the opportunity.
With that in mind, here are two ASX 200 shares I would buy and two I would consider selling.
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Wesfarmers Ltd (ASX: WES)
Wesfarmers is one of the ASX 200 shares I would be happy buying for the long term.
The company owns a collection of high-quality businesses, including Bunnings, Kmart, Officeworks, and other industrial and healthcare operations. What I like is that these businesses give Wesfarmers exposure to everyday consumer spending, home improvement, value retail, and longer-term growth options.
But for me, the real attraction is not just the brands. It is the way Wesfarmers manages capital.
This is a company that has shown it can invest where returns are attractive, walk away from areas that no longer make sense, and keep reshaping the portfolio over time. That kind of discipline can be very valuable over a decade or more.
Bunnings remains the key engine, and I think it still has room to grow through network expansion, digital improvements, trade sales, and ongoing efficiency gains. Kmart also gives the group exposure to value-conscious consumers, which I think remains useful in the current environment.
Goodman Group (ASX: GMG)
Goodman is another ASX 200 share I would put in the buy column.
It owns, develops, and manages industrial property, with a strong focus on logistics warehouses and data centre opportunities. That combination is what makes it interesting to me.
The logistics side benefits from long-term demand for modern warehousing close to major cities. Supply chains are becoming more complex, and businesses need well-located facilities to move goods efficiently.
But the bigger growth angle now is data centres. Goodman owns land in strategic locations, and I think that gives it a powerful advantage as demand for digital infrastructure continues to grow. Artificial intelligence, cloud computing, and data-heavy applications all require significant physical infrastructure.
Westpac Banking Corp (ASX: WBC)
Westpac is a quality bank, and I don't think this is a negative call on the business itself.
It has a large customer base, a strong deposit franchise, and an important role in the Australian financial system. It also remains a major dividend payer, which will appeal to many income investors.
But after a strong run, I think the valuation looks less compelling, and I would be a seller rather than a buyer.
Santos Ltd (ASX: STO)
Santos is another ASX 200 share I would place in the sell column, despite it being a quality energy business.
The company has valuable oil and gas assets and exposure to global energy demand. It can generate strong cash flows when commodity prices are supportive.
But after a strong share price run, I think the investment opportunity here looks less appealing.
Foolish Takeaway
For me, this comes down to price and positioning.
Wesfarmers and Goodman are the two I would buy because I think they have durable growth drivers and strong long-term compounding potential.
Westpac and Santos are quality businesses, but after strong runs, I think the risk-reward looks less attractive.
In a market like this, I would rather be selective than simply buy what has already been working.
