The world’s population is getting older and will continue to do so over the coming decades.
According to data from the United Nation’s World Population Prospects: the 2019 Revision, by 2050, one in six people will be over the age of 65 globally.
In addition to this, the number of people aged 80 years or over is projected to triple from 143 million in 2019 to 426 million in 2050.
Given these huge shifts in demographics, demand for healthcare services is expected to increase materially over the next three decades.
In light of this, I think that investing in the healthcare sector is a smart move.
But which shares should you buy? Sticking with quality seems like the best move in my eyes, which means these three healthcare stars could be the ones to buy today:
Cochlear Limited (ASX: COH)
The first healthcare share to look at buying is Cochlear. I think the hearing solutions company has a very positive long term outlook thanks to its exposure to the aforementioned ageing populations tailwind. This is because as people age, their hearing will generally fade and require some form of assistance. I expect this to lead to increasing demand for hearing solutions products over the next couple of decades.
CSL Limited (ASX: CSL)
My favourite healthcare share is this biotherapeutics giant. I believe that both its CSL Behring and Seqirus businesses are well-placed to deliver strong sales and earnings growth over the next decade. This is thanks to their in-demand therapies and vaccines and their lucrative research and development pipelines. Within CSL’s current pipeline are therapies that have the potential to generate billions of dollars in sales over the next decade.
Ramsay Health Care Limited (ASX: RHC)
A final healthcare share to consider buying is Ramsay Health Care. It is a leading private healthcare company with a total of 480 facilities across 11 countries. Given its global footprint, I believe Ramsay’s network is well-placed to benefit greatly from the expected increase in demand for healthcare services in the future. This could make it worth looking beyond the short term headwinds it is facing and focusing on its positive long term outlook.
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More reading
- How to turn $20,000 into $250,000 in 10 years with ASX shares
- Why I’m desperate to add CSL and 2 other ASX shares to my portfolio in 2020
- Is the Cochlear share price in the buy zone now that it’s down 23%?
- I would buy and hold Kogan and these ASX shares until 2030
- 3 undervalued ASX growth companies to add to your portfolio
James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Cochlear Ltd. and CSL Ltd. The Motley Fool Australia has recommended Cochlear Ltd. and Ramsay Health Care Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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