Due to favourable long term industry tailwinds, I’m particularly positive on the healthcare industry.
But with so many top shares to choose from in the industry, it can be difficult to decide which ones to buy.
To narrow things down I have picked out three ASX healthcare shares that I believe would be fantastic long term options for investors. They are as follows:
CSL Limited (ASX: CSL)
The first healthcare share I would buy is CSL. It is one of the world’s leading biotherapeutics companies and has a portfolio of life-saving therapies and vaccines. Pleasingly, the company isn’t resting on its laurels and is investing heavily in its research and development. This year I expect CSL to invest somewhere in the region of ~US$900 million into these activities. These annual investments mean the company has a large number of therapies in its pipeline that have the potential to generates significant sales over the next decade. Overall, I believe CSL is well-positioned to continue growing its earnings at a solid rate for the foreseeable future.
iShares Global Healthcare ETF (ASX: IXJ)
Another healthcare option for investors to consider is the iShares Global Healthcare ETF. It provides investors with exposure to companies across a range of sectors including biotechnology, pharmaceutical, and medical devices. This includes many of the world’s biggest healthcare companies such as CSL, Johnson & Johnson, Novartis, and Pfizer. Given the increasing demand for healthcare services globally, I believe this group of companies could outperform the market over the long term. This could make it a quality option for investors.
Ramsay Health Care Limited (ASX: RHC)
Ramsay Health Care has been battling with tough trading conditions for a couple of years and things are unlikely to get easier in the immediate term. However, I believe this is already factored into the Ramsay share price. As a result, I think now is the time to focus on the long term. Which I believe looks very positive due to the expected increase in demand for healthcare services and its global footprint. In addition to this, Ramsay has a long history of growing through acquisitions. I suspect there could be more coming in the not so distant future, expanding the company’s operations into new geographies.
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- Brokers name 3 ASX 200 shares to buy right now
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 CSL Ltd. The Motley Fool Australia has recommended 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.
The post Why I would buy and hold CSL and these ASX healthcare shares appeared first on Motley Fool Australia.
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