Why I'd buy BHP and CBA shares in July

I think both of these ASX giants still have more to offer long-term investors.

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BHP Group Ltd (ASX: BHP) and Commonwealth Bank of Australia (ASX: CBA) are two of the most recognisable ASX shares, and I think they remain interesting for very different reasons.

One is connected to the materials required to build the next stage of the global economy. The other sits at the centre of how Australians save, borrow, and manage money.

Both businesses have already achieved enormous scale. The reason I would still consider buying them is that I think their advantages can continue evolving.

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BHP shares

The investment case for BHP is often discussed through commodity prices, but I think the more interesting question is what role the company can play over the next decade.

BHP owns some of the world's largest resource assets, but scale alone is not what attracts me. What I like is the company's ability to invest in areas where long-term demand could become increasingly important.

Copper is the obvious example. The global economy is becoming more dependent on electricity, digital infrastructure, renewable energy, and new technologies. All of those trends require significant amounts of copper.

I think BHP's opportunity is that it already has exposure to a commodity with a potentially important role in the future.

The company is also exploring growth through Jansen potash, which gives investors exposure to a different long-term theme. Food production and agricultural productivity are areas with their own structural demand drivers.

The recent challenges at Jansen have been disappointing, and investors are right to pay attention to capital discipline. Large projects need to generate attractive returns.

However, I think BHP's size gives it options that many resource companies simply do not have. It can manage cycles, invest through uncertainty, and continue looking for opportunities that strengthen its long-term position.

That is why I would buy BHP shares in July.

CBA shares

CBA is a business I think investors sometimes underestimate because banking can appear simple from the outside.

A bank takes deposits, provides loans, and earns the difference. But the strongest banks are built around something deeper: customer relationships, trust, technology, and data.

That is where I think CBA stands out. The company has spent years building one of Australia's strongest financial ecosystems. Its digital platform, customer base, and brand recognition create advantages that are difficult for competitors to replicate quickly.

I also think CBA's scale gives it flexibility.

Technology investment is becoming increasingly important in banking. Fraud prevention, customer service, payments, and lending decisions are all becoming more digital. Large banks with significant resources can continue investing in these areas.

The valuation is always part of the discussion with CBA. Investors know it is a high-quality business, and that recognition is reflected in the share price.

But I think quality businesses often deserve a premium when they can consistently defend their position.

For long-term investors, I like the combination of a strong franchise, reliable earnings, and the ability to keep adapting as financial services change.

That is why I would buy CBA shares in July.

Foolish takeaway

I think BHP and CBA appeal for the same underlying reason: both have built positions that are difficult to recreate.

Their industries are different, but both companies have spent decades developing assets, relationships, and capabilities that can continue creating value.

I would expect periods where sentiment changes around both businesses. Commodity cycles move, banking conditions shift, and investors constantly reassess valuations.

But when I look beyond the next headline, I see two companies with the scale and resources to keep finding ways to remain relevant.

Motley Fool contributor Grace Alvino has positions in Commonwealth Bank Of Australia. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP Group. 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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