2 ASX blue-chip shares that I think are excellent long-term buys

ASX blue-chip shares can make great investments if we invest in the right ones.

Blue-chip stocks are those with strong market positions, achieve good margins, typically deliver profit growth over the longer term, and pay decent dividends.

The world's biggest blue chips, namely tech US companies, have delivered excellent returns for investors. I'm excited by the long-term potential of two particular businesses, which I think can also make good returns for investors. I'll explain why below.

Wesfarmers Ltd (ASX: WES)

In my view, Wesfarmers is an incredibly impressive retail business with key profit generators such as Bunnings, Kmart, and Officeworks.

Bunnings and Kmart achieve strong returns on capital (ROC) for shareholders, as households are drawn to the value offering of those retail behemoths.

Wesfarmers has helped Bunnings grow into the clear leader of Australia's hardware industry. Growth in categories like auto care and pet care has helped increase the company's total addressable market. Online sales growth and commercial customer growth are two areas in which the ASX blue-chip share could benefit.

What's most exciting to me is the potential growth of the Anko brand, which is sold in Kmart but is increasingly sold in other places worldwide.

Wesfarmers said in a recent strategy briefing that Anko is well-placed to leverage strong value credentials and hard-to-replicate capabilities. Globally, consumers are increasingly value-conscious. Higher-income customers are reportedly trading down, placing importance on design aesthetic and quality at a lower price.

To mention the global growth, Anko's furniture and home products are being sold in Walmart Canada, and wooden toys are being sold in the US. Excitingly, there is a 'broad' general merchandise range in the Philippines (which has a population of 115 million). Anko currently has two stores in the Philippines, with another store planned for July.

The global growth potential for Anko is very exciting, in my view.

Telstra Group Ltd (ASX: TLS)

The other ASX blue-chip share I'll talk about is Telstra, the leading telco in Australia.

I think Telstra is facing a promising period ahead because of its market leadership. It's investing the most in its telecommunications infrastructure compared to competitors, enabling it to stay ahead of peers.

There are a few simple ingredients for Telstra's success and its growth for the future. First, invest to ensure ongoing leadership. Second, continue winning new customers. Third, achieve a good average revenue per user (ARPU).

Telstra is winning tens of thousands of new subscribers every half-yearly reporting period, which is helping its operating leverage because the costs of the mobile network are being spread across users, improving profit margins.

The ASX blue-chip share recently announced it was increasing prices for some of its customers, which could help increase the telco's ARPU again, showing the market power of the business.

I think Telstra is capable of growing its underlying net profit and dividend in each of the next few years, which could help deliver good returns for Telstra shares.

The post 2 ASX blue-chip shares that I think are excellent long-term buys appeared first on The Motley Fool Australia.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended Wesfarmers. 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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