According to research by the World Health Organization, between 2015 and 2050, the proportion of the world's population over 60 years will almost double from 12% to 22%.
This is expected to lead to increasing demand for healthcare services over the next three decades, which is why I think the healthcare sector is a great place to consider long term buy and hold investments.
Three healthcare shares that I would buy are listed below. Here's why I like them:
Cochlear Limited (ASX: COH)
As people age their hearing will invariably deteriorate and require some form of assistance. In light of this, I think Cochlear is well-positioned for long term growth due to being a leading manufacturer and distributor of cochlear implantable devices for the hearing impaired globally. Thanks to this and the industry's high barriers to entry, I remain confident that Cochlear can continue being a market beater over the next decade.
Nanosonics Ltd (ASX: NAN)
Another healthcare share which I think could be a great buy and hold option is Nanosonics. At present the infection control specialist is generating all its revenue from its industry-leading trophon EPR disinfection system for ultrasound probes. Whilst I believe this product and the consumables it requires will underpin solid earnings growth over the next decade, they will soon be joined by a range of new products which are under development and targeting unmet needs. If these are only half as successful as trophon EPR, it bodes well for Nanosonics' long term growth.
Volpara Health Technologies Ltd (ASX: VHT)
Volpara Health Technologies is a leading provider of breast imaging analytics and analysis products that improve clinical decision-making and the early detection of breast cancer. Its software aims to help clinicians better understand their patients and administrators better understand their practices. And judging by its increasing popularity in North America, it is delivering on its promise. This year the company is on track to deliver annual recurring revenue (ARR) growth of 158% to NZ$17.1 million and a 27% footprint in the United States.