5 Best Sectors To Invest In Long-Term

2. Healthcare

Number of Companies: 21

According to Research Dive, the size of the global health and wellness market was $4,712.5 billion in 2021. It is expected to grow at a compound annual growth rate (CAGR) of 10.9% and reach a revenue of $12,850.3 billion by 2031. Healthcare is one of the best sectors to invest in for the long-term. 

UnitedHealth Group Incorporated (NYSE:UNH) is one of the most popular healthcare stocks among elite investors. It is a diversified healthcare company that operates through four segments – UnitedHealthcare, Optum Health, Optum Insight, and Optum Rx. On July 14, UnitedHealth Group Incorporated (NYSE:UNH) reported a Q2 non-GAAP EPS of $6.14 and a revenue of $92.9 billion, outperforming Wall Street estimates by $0.16 and $1.94 billion, respectively. 

According to Insider Monkey’s Q1 database, 116 hedge funds were bullish on UnitedHealth Group Incorporated (NYSE:UNH), compared to 110 funds in the last quarter. Rajiv Jain’s GQG Partners is the largest stakeholder of the company, with 4.8 million shares worth $2.28 billion. 

L1 Capital International Fund made the following comment about UnitedHealth Group Incorporated (NYSE:UNH) in its second quarter 2023 investor letter:

“Close observers of the Fund will note the increased exposure to healthcare, currently 13% of the portfolio. Healthcare is generally less macro-sensitive than some other sectors. In a reversal of market sentiment compared to 2022, the healthcare sector has been under modest pressure due to what we consider to be some short-term transitory issues, while technology, particularly anything to do with AI, has become the market’s dish du jour. We have been selectively increasing our investment in a few very high-quality healthcare businesses at prices we consider to be fair. UnitedHealth Group Incorporated (NYSE:UNH) is now a top 10 holding, and our investment thesis is outlined in this report.

We have previously written on our exposure to taxes through our investment in Intuit and its market leading TurboTax franchise (Intuit also owns the QuickBooks small business accounting franchise, Credit Karma and Mailchimp). UnitedHealth Group (UnitedHealth) is leading the charge to postpone the inevitable, while lowering overall healthcare system costs.

U.S. health spending has outpaced GDP growth for decades, with spending on healthcare increasing from around 12% of GDP in the 1980s to nearly 20% today, driven by advancements in healthcare capabilities and an aging population with increased life expectancy…” (Click here to read the full text)