I am particularly attracted to ASX healthcare shares right now. The world’s growing and ageing population is driving an ever-increasing demand for healthcare services.

Here we take a close look at 3 of my top ASX healthcare share picks in CSL Limited (ASX: CSL), Ramsay Health Care Limited (ASX: RHC) and ResMed Inc (ASX: RMD).

All 3 have evolved to become global leaders in their respective healthcare segments.

CSL

CSL has grown from strength to strength over the past 3 decades.

It has evolved from a very small federal government department to become one of, if not the largest company on the ASX. It currently has a market capitalization of $132.5 billion.

The company is now a global market leader in blood plasma research and disease treatment. It has an impressive global product reach spanning more than 60 countries.

CSL has also become a world leader in the quest to find an effective treatment for the coronavirus. It has recently entered into an agreement to ramp up the development of a COVID-19 vaccine candidate.

I believe that CSL is well-positioned to continue growing its revenue base strongly over the next 5–10 years. A strong new product development pipeline will drive this growth.  

Ramsay

Another ASX healthcare company I would consider buying right now is Ramsay. Like CSL, it also has evolved significantly over the past few decades. It is now Australia’s largest private healthcare provider. Ramsay operates in 11 other countries including the United Kingdom, France, Indonesia, Malaysia and Italy.

Its global scale enables the company to spread its operating costs. It also gives Ramsay a competitive advantage over its smaller rivals in negotiations with health provider insurance companies.

A pause on some elective surgeries during the early phase of the coronavirus pandemic saw Ramsay’s share price impacted. However, these bans are gradually being lifted.

Ramsay has also successfully signed a number of key government deals in Australia and the United Kingdom during the pandemic.

ResMed

ResMed has also grown modest origins to become a leading global healthcare operator in its market niche.

This ASX company manufactures devices and cloud-based software solutions for the treatment of sleep apnoea as well as other chronic respiratory illnesses.

ResMed continues to grow its revenue base strongly. It achieved an impressive 47% increase in net income during Q3 FY20.

I see a strong demand for ResMed’s products continuing well into the next decade. It is estimated that around 1 billion people are impacted by sleep apnoea worldwide, while more than 80% of cases are undiagnosed globally.

More reading

• Invest like Warren Buffett by buying and holding these ASX 200 shares
• 3 quality ASX growth shares to buy and hold
• Where to invest $20,000 into ASX shares immediately
• ASX 200 Weekly Wrap: ASX back in the green
• These fantastic healthcare ASX shares could make you wealthy

Phil Harpur owns shares of CSL Ltd. and ResMed Inc. 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 and ResMed Inc. 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 Consider these 3 quality ASX healthcare shares to buy now appeared first on Motley Fool Australia.

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If you’re just starting out with investing, I wouldn’t worry if you don’t have tens of thousands of dollars to invest. Even if you only have $5,000 to invest each year, you can still generate material wealth if you do it consistently and think long term.

According to research by Fidelity, the Australian share market has generated an average total return of ~9.2% per annum over the last three decades. Based on this, if you invested $5,000 each year for the last 30 years (and earned the market return), your portfolio would now be valued at a massive ~$773,000.

Overall, I believe this shows just how rewarding it can be to make regular investments over a long period.

But which shares should you buy with your first $5,000? Two ASX shares that I think could provide market-beating returns over the long term are listed below:

Afterpay Ltd (ASX: APT)

Although it is a reasonably high risk option because of its lofty valuation, I still believe Afterpay could be a great long term investment. I believe the buy now pay later provider is well-positioned for growth over the next decade and beyond thanks to the growing popularity of the payment method with consumers and merchants and its massive market opportunity in the United States.

In addition to this, I believe the company is very likely to expand into new territories in the near future. I suspect mainland Europe could come first and then probably the Asian market with the support of its substantial shareholder, WeChat. If it makes a success of these expansions, then Afterpay could become a payments giant in the future.

Altium Limited (ASX: ALU)

I think it is fair to say that 2020 has been a disappointing year for Altium. Unfortunately, it is one of the few tech companies which have been negatively impacted by the pandemic. Nevertheless, I believe this is a short term headwind and expect its growth to accelerate again in FY 2021.

Especially given how it is exposed to the growing Internet of Things (IoT) market. According to a company presentation, global technology spending on IoT is expected to reach US$1.2 trillion in 2022. Given that the vast majority of IoT devices have printed circuit boards inside them, this should lead to strong demand for its award-winning electronic design software.

More reading

• ASX 200 down 0.2%: Afterpay hits record high, TPG Telecom merger vote
• Why Afterpay, APA, Evolution, & Sonic shares are storming higher
• Coronavirus second wave potential could drive investment portfolio changes
• Best growth shares to buy with $4,000
• 5 things to watch on the ASX 200 on Wednesday

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 Altium. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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 How to get rich by investing in ASX shares appeared first on Motley Fool Australia.

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At lunch on Wednesday the S&P/ASX 200 Index (ASX: XJO) has given back its morning gains and has dropped lower. The benchmark index is down 0.2% to 5,943.8 points.

Here’s what has been happening on the market today:

Afterpay hits record high on UK update.

The Afterpay Ltd (ASX: APT) share price jumped to a record high of $62.33 this morning. This follows the release of an announcement by the payments company after the market close on Tuesday. The announcement revealed that Afterpay’s UK-based Clearpay business now has over 1 million active customers on its platform after a year in the country. Management also notes that consumers are using its platform more frequently than they were in the U.S. at the same stage.

Sonic Healthcare update.

The Sonic Healthcare Limited (ASX: SHL) share price is storming higher on Wednesday after the release of a trading update. That update reveals that after the pandemic hit the healthcare company hard in March and April, its business has bounced back strongly in May and June. As a result of this, the company has reinstated its guidance and advised that it expects its EBITDA to be broadly flat in FY 2020.

TPG Telecom scheme meeting.

The TPG Telecom Ltd (ASX: TPM) share price is pushing higher on Wednesday after shareholders voted overwhelmingly in favour of its merger with Vodafone Australia. According to the AFR, 99.68% of proxies voted in favour of the deal. This means the companies could complete the mega merger on July 13.

Best and worst ASX 200 shares.

The best performer on the ASX 200 on Wednesday has been the Perseus Mining Limited (ASX: PRU) share price with a sizeable 8% gain. This follows a jump in the gold price overnight. The worst performer on the ASX 200 has been the Viva Energy Group Ltd (ASX: VEA) share price with a 4% decline. This is despite there being no news out of the fuel retailer.

More reading

• How to get rich by investing in ASX shares
• Is the Woolworths share price a secret buy?
• Alphabet soup: Is the ASX 200 in for a V-shaped COVID recovery or rolling Ws?
• Where to invest $10,000 in ASX 200 shares for 2030
• Ready to invest $5,000? I’d buy these ASX dividend shares today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Sonic Healthcare 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 ASX 200 down 0.2%: Afterpay hits record high, TPG Telecom merger vote appeared first on Motley Fool Australia.

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