1 Top Healthcare Stock to Buy and Hold Forever
Investing in well-established, blue-chip companies with solid revenue and earnings as well as stable operations can be a bit boring. Such corporations are unlikely to provide massive gains in a short period. But even boring can be efficient, and for long-term investors looking to build serious wealth, it is often best to stick with companies with reliable businesses.
The healthcare industry is a great place to find such stocks since the demand for medical care remains relatively constant regardless of economic conditions. One excellent healthcare stock to consider buying and holding for a while is the drugmaker Merck (NYSE: MRK). Here's why this pharma giant is such an excellent long-term investment.
Pharmaceutical companies benefit from patents that protect their products from competition and give them some degree of pricing power. The length of patent protection (20 years in the U.S.) also allows drugmakers time to launch new products before patent cliffs lead to generic competition and an inevitable decline in revenue for older medicines.
Source Fool.com
