Benjamin Graham, one of the most influential investors ever, once said, “Always buy your straw hats in the winter.” We might also add that it’s best to stock up on candy after Easter or Halloween, and that January is a terrific time to replenish those Christmas decorations. Graham’s advice to investors was that they should buy something with future value while demand is low in order to enjoy the sales price.
That is the theme of these two stocks, which have been punished in the short term despite having tremendous long-term outlooks based on definitive trends.
1. Intuitive Surgical
If you have been to a major U.S. hospital system recently, there is a good chance that it is equipped with a robotic-assisted surgery system. Most likely, that surgery system was developed, manufactured, and sold by Intuitive Surgical ( ISRG -14.34% ), which holds a nearly 80% share of the global surgical robotics market.
Intuitive is a pioneer in advancing minimally invasive advanced surgical techniques for various procedures, including cardiac, colorectal, gastric, and others. Minimally invasive surgery can make a tremendously positive difference for patients, doctors, hospitals, and insurance companies. Not long ago, doctors could only operate on the heart through open-heart surgery. This involved a long incision, opening the ribs, and other cringe-inducing procedures. With Intuitive’s da Vinci surgical system, surgeons can perform several common heart procedures with just a few small incisions. This is truly a game-changer.
Admittedly, COVID-19 stunted the growth of Intuitive, as hospitals with full ICUs cut back on non-emergency surgeries. However, long-term trends — like a rapidly aging population — are extremely positive for the healthcare company. Currently, there are more than 46 million adults aged 65-plus, and this number is expected to grow by another 18 million within this decade, reaching 77 million by 2034.
Perhaps the best part of Intuitive’s…
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