Over the last five years the healthcare sector has been one of the best performing areas of the share market.
During this time the S&P/ASX 200 Health Care index has gained more than 125%. This has vastly outperformed the S&P/ASX 200 Index (ASX: XJO) which is only up 7.5% over the same period (excluding dividends).
While I doubt this level of outperformance will continue over the next five years, I believe the healthcare sector is still very well-placed to beat the market.
Especially given the increasing demand for healthcare services due to ageing populations, increased chronic disease burden, and product and technological developments.
In light of this, I think having exposure to the healthcare sector would be a very smart move. Here are two ASX healthcare shares that I would buy:
CSL Limited (ASX: CSL)
The first healthcare share to consider buying is CSL. It is one of the world's leading biotherapeutics companies and has a portfolio of life-saving therapies and vaccines. In addition to this, CSL invests heavily in research and development. This investment means it has a large number of therapies in its pipeline that have the potential to generates significant sales over the next decade. Combined, I believe CSL is well-positioned to continue growing its earnings at a solid rate throughout the 2020s.
ResMed Inc. (ASX: RMD)
Another healthcare share to consider buying is ResMed. It was a very strong performer over the 2010s and I feel confident it can repeat this throughout the 2020s. This is due to the medical device company's focus on the sleep treatment market. The proliferation of obstructive sleep apnoea is driving increasing demand for masks and software solutions. Given the quality of its offering and its wide distribution network, I believe it is well-placed to capture this growing demand and deliver strong earnings growth this decade.
