Please ensure Javascript is enabled for purposes of website accessibility

Here's Why Investors Should Remember These 2 Healthcare Lessons in 2021

By Cory Renauer - Feb 9, 2021 at 6:11AM

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

If you're thinking about investing in healthcare stocks this year, remember these two things.

What do investors considering healthcare stocks like Intuitive Surgical (ISRG -4.37%), Abbott Labs (ABT -1.57%), and Johnson & Johnson (JNJ -1.86%) need to remember in 2021? 

In this Motley Fool Live video, recorded on Jan. 29, healthcare and cannabis bureau chief Corinne Cardina and writer Cory Renauer discuss two key takeaways for shareholders of the sector's most successful businesses. 

Corinne Cardina: What are three takeaways for investors who are thinking about buying healthcare stocks?

Cory Renauer: Maybe we will narrow it down to just two takeaways.

Cardina: Sure.

Renauer: If you hold shares of profitable stocks long enough, eventually, you're going to come out ahead. If you're an investor that gets nervous about day-to-day stock market fluctuations, you know this past week was a little bit nerve-racking, holding a strongly profitable company like Intuitive Surgical or Abbott Labs, or Johnson & Johnson, makes it a lot easier to take short-term market fluctuations in stride, and the best way to make money in stocks is to hold those stocks for a long time. You might not see 20% gains year after year. But nice companies like these, you're not going to lose money if you hang onto them.

Sorry. Second takeaway. COVID-19 and all the weird effects that it's having on the stock market, these are temporary. Demand for diagnostics is going to drop. But on the other hand, healthcare providers are going to return to normal, and Intuitive Surgical will be able to continue growing. You've got to think on a long-term basis.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Intuitive Surgical, Inc. Stock Quote
Intuitive Surgical, Inc.
$215.35 (-4.37%) $-9.83
Johnson & Johnson Stock Quote
Johnson & Johnson
$175.50 (-1.86%) $-3.32
Abbott Laboratories Stock Quote
Abbott Laboratories
$112.74 (-1.57%) $-1.80

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/18/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.