With demand for healthcare services expected to grow strongly over the next few decades, I think it is a great place to look for buy and hold investment.
Amongst the many options available to investors in the sector, I feel three of the best are listed below. Here's why I like them:
Cochlear Limited (ASX: COH)
I think this hearing solutions company could be a great long-term investment due to ageing populations around the globe. As people age, their hearing will more often than not begin to fade and require some form of assistance. Given the quality of its products, the industry's high barriers to entry, and its wide distribution network, I believe Cochlear is well-positioned to benefit from this and generate strong sales and profit growth over the next decade and beyond. Though, the suspension of elective surgeries during the pandemic is likely to weigh on its performance in the second half of FY 2020.
Ramsay Health Care Limited (ASX: RHC)
Although I think Ramsay's performance will underwhelm in the immediate term, there's no doubting that its long term outlook is very positive. I believe Ramsay will be a big winner from the increasing demand for healthcare services due to its sprawling network. Ramsay currently provides healthcare services from 480 facilities across 11 countries. This makes it one of the largest and most diverse private healthcare companies in the world.
ResMed Inc. (ASX: RMD)
A final healthcare share to buy and hold is ResMed. It is a medical device company with a focus on the massive sleep treatment market. I believe ResMed is perfectly positioned for long-term growth thanks to increasing demand for sleep treatment products. This is being caused by the proliferation of obstructive sleep apnoea (OSA). According to the company, less than 20% of OSA sufferers have been diagnosed or treated. In light of this, its industry-leading products, its wide distribution network, and growing awareness of OSA, I think its shares could generate strong returns for investors over the next decade.
