A great British exporter

The first stock I don’t plan to sell is British spirits giant Diageo (LSE: DGE). The company has a portfolio of over 200 brands sold in 180 countries.

Diageo’s most popular brands

Most of these brands have a timeless quality to them, though, of course, the risk of a recession is looming. While this could hurt sales of alcohol, consumers tend not to cut back on their favourite tipple even during recessions. And I think as disposable incomes rise in South-East Asia and Latin America, demand for Diageo’s products will remain strong for decades.

The DNA age

Illumina (NASDAQ: ILMN) makes gene sequencing machines that enable customers to read and understand an organism’s DNA. The firm’s products played a crucial role during the pandemic, enabling scientists to identify novel coronavirus mutations, track transmission, and ultimately to develop vaccines.

The company commands 70% of the global DNA sequencing market. A very healthy 70% of its revenues are recurring, and its operating margins are around 20%.

This dominance, however, hasn’t gone unnoticed by regulators, and Illumina has been thwarted recently in its attempts to acquire competitors. The risk here is that if organic growth slows, it won’t be able to grow through acquisition.

Even so, with only 0.02% of humans sequenced today, Illumina has a gigantic runway of growth ahead of it. I believe we’re entering the DNA age and I intend to hold my shares over the long haul.

An ageing population

By 2050, the world’s population of people aged 60 years and older will double to 2.1bn. This trend towards an ageing global population is one of the reasons I own shares in Intuitive Surgical (NASDAQ:ISRG).

The company is the top dog in global surgical robotics, controlling around 80% of the market. Its flagship product is the da Vinci Surgical System, which surgeons use to perform an increasingly wide range of minimally invasive procedures.

Some of the benefits of robotic-assisted surgery for patients include less pain and blood loss, reduced risk of infection, and less scarring. Also, recovery times are quicker, saving health systems a fortune.

Today, over 10m procedures have been carried out on the company’s robotic-assisted devices, from an installed base of 7,364 systems. Once medical professionals are trained on these products, they’re unlikely to switch to a competitor.

The competitive advantage Intuitive Surgical now has over its rivals is enormous, but that doesn’t mean competitors couldn’t emerge one day with even better surgical systems.

Still, an ageing global population should drive demand for robotic surgery for decades. So I can’t see myself ever selling the shares. In fact, I’m thinking about buying more.

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.