I think these are the best shares to buy now for the next decade!

Zaven Boyrazian has potentially found two of the best shares to buy today trading at double-digit discounts for (hopefully) multi-decade returns!

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Engineer Project Manager Talks With Scientist working on Computer

Image source: Getty Images

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

Following the recent stock market correction, I’ve been looking to find the best shares to buy now for the next decade. But sometimes, the greatest opportunities can often already be in an investor’s portfolio. And that certainly seems to be true for menwith two existing holdings.

When investing for the long run, a tactic I like to deploy is to look at the sectors I believe will constantly be in demand. And while there are undoubtedly multiple answers, the one that excites me the most is healthcare — specifically medical technology.

We’ve got our fair share of medical device businesses here in the UK, like Smith & Nephew. But today, I’m travelling across the pond to the United States and looking at what I believe are some explosive long-term opportunities. Even more so today, with many seemingly trading at awesome discounts.  

Are these the best shares to buy now?

One of the most sci-fi-looking developments in the medical space, I feel, is robotic-assisted surgery. And as farfetched as that once seemed, the technology exists today and has done for quite some time, thanks to Intuitive Surgical (NASDAQ:ISRG).

The firm’s Da Vinci robotic system is considered first-class in the medical community, with 7,135 machines already deployed worldwide. Intuitive has a razor-and-blade business model. It sells the machines at a low margin to improve affordability for new customers. But makes up the difference with consumable products needed for the devices to work.

This approach has resulted in impressive levels of cash flow and 30%+ operating margins. But despite being an industry leader, it’s far from risk-free. Robotic-assisted surgery is significantly less invasive and has a far shorter recovery time. But the problem is the cost.

This type of surgery is still prohibitively expensive for most people. And if the firm cannot make its systems cheaper without compromising margins, becoming a standard surgery option may never materialise. In this scenario, my investment may struggle to pay off.

That’s a risk I’m willing to take. And with shares down almost 30% in the last 12 months, I think Intuitive Surgical could be one of the best shares to buy today for my portfolio.

Patient monitoring is evolving

Performing surgery is step one. Step two is monitoring patients both in and out of the operating theatre. And that requires technology from a business like Masimo (NASDAQ:MASI).

The firm owns a vast portfolio of products that allow doctors and nurses to see exactly what’s going on with their patients. The list includes technologies such as pulse oximetry to monitor blood oxygen levels and brain monitoring systems for anaesthesiologists during surgery. It’s quite a speciality field. But it’s one that hospitals are enormously dependent on.

Once again, nothing is risk-free. And while the regulated healthcare sector creates substantial hurdles, there is a weakness in the revenue stream that could be problematic. Around 50% of top-line income stems from selling its products to just five group purchasing organisations (GPOs). If relationships break down with just one of these, it could significantly impact earnings.

Nevertheless, with a 40% share price discount in spite of delivering impressive results, I can’t help but feel these could be among the best shares to buy more of now for my portfolio.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Zaven Boyrazian has positions in Intuitive Surgical and Masimo. The Motley Fool UK has recommended Intuitive Surgical, Masimo, and Smith & Nephew. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

Investing Articles

How much would I need to invest in income shares to earn £300 a month?

What kind of lump sum would be required to earn £300 a month by taking advantage of some of the…

Read more »

Investing For Beginners

Up 31% in a month, could this FTSE 250 stock be getting bought out?

Jon Smith takes a look at speculation that's pushing the share price of a FTSE 250 share higher and considers…

Read more »

Investing Articles

Here’s how I’d follow Warren Buffett to start building passive income in 2025

Ben McPoland highlights one FTSE 250 firm with a strong competitive edge that he thinks can continue rewarding investors with…

Read more »

Investing Articles

Burberry shares: undervalued FTSE gems that are ready to rocket?

Burberry shares soared at the beginning of the week as the takeover rumour mill went into overdrive. Is Paul Summers…

Read more »

US Stock

Here are the latest share price forecasts for S&P 500 giant Amazon

Amazon has generated monster gains for investors over the last decade. And Wall Street analysts believe the S&P 500 stock…

Read more »

Man writing 'now' having crossed out 'later', 'tomorrow' and 'next week'
Investing Articles

2 high-yield FTSE 250 shares I’d buy today — and 1 that I’d avoid

UK markets have felt some volatility after last week’s Budget and the FTSE 250 was no stranger to it. Our…

Read more »

Investing Articles

3 reasons the Rolls-Royce share price could soar over the next decade

Sustainable aviation fuel, narrow-body aircraft, and small nuclear reactors could all keep the Rolls-Royce share price climbing over the next…

Read more »

British flag, Big Ben, Houses of Parliament and British flag composition
Investing Articles

Here’s how much income I’d get if I invested my entire £20k ISA in cheap BT shares

BT shares are on the up but still cheap, while the FTSE 100 telecoms stock offers a good yield too.…

Read more »