With stocks having been beaten down so badly these past few quarters, investors are getting tired of losing money. However, for those of us who are not about to retire, we have to allow some room for patience in our investing strategies. Investing in a company whose stock price appreciates year-over-year is optimal, but if you’ve got some time to spare, invest in companies that you know will be more valuable 10 to 15 years down the road. With heart disease persisting as the number one killer worldwide, you should be looking to prop up your portfolio over the long run with stocks dedicated to fighting heart disease . Combined with the aging world population, these two stocks are poised to capitalize on the declining health of the eldest generation:

Medtronic Inc.

Medtronic Inc. [MDT: 32.16, +0.16 (+0.50%)] is a company in a position to take advantage of the favorable swings within the healthcare industry while avoiding the negative trends snaring many medical device and diagnostic companies. Most of Medtronic’s revenue stream stems from sales in cardiovascular devices such as implantable cardioverter-defibrillators and pacemakers.  However, it also has a leading positions in other markets due to its vast pipeline of successful and reliable products. In the short run, Medtronic offers relief from the rough economy, but in the long term, this company is a bellwether play within the heart industry and as more and more people suffer from heart related diseases, they will rely on the quality of performance Medtronic has to offer with its products and services.

In 2008, $4.96 billion of Medtronic’s revenue (37%) came from its Cardiac Rhythm Disease Management business segment and $2.13 billion (16%) from its CardioVascular segment. MDT is among the most profitable company in its field offering investors a higher return than its main competitors while maintaining a much cheaper valuation.  I know that this stock will be higher 10 to 15 years down the road because of its strong, innovative product pipeline, shrewd management, and especially because of the macroeconomic trends in motion.  Adding Medtronic to any long term portfolio will be a financially beneficial move.

St. Jude Medical

St. Jude Medical [STJ: 33.17, -0.35 (-1.04%)] is an attractive heart stock that has a leading position in the Cardiac Rhythm Management industry. STJ manufactures and develops implantable cardiac rhythm devices (ICD), pacemakers, supplies for cardiac surgery, catheters, and vascular closure devices.  Sales for ICDs have grown rapidly over the past few years largely due to the benefits they hold over regular cardiac rhythm devices.  ICDs have reduced cardiac deaths by 23%, triumphing over alternatives and providing St. Jude a significant stream of revenue.  Revenue from St. Jude’s ICD business segment is up 14% to $394 million from 2008, and its cardiovascular device sales are up 21% to $240 million from 2008.  Although STJ is more expensive when comparing metrics to its competitors, it still has a strong core business that will allow revenue to grow strongly over the next 10 to 15 years.

In 2005, roughly 29% of all deaths were related to heart disease or chronic heart conditions in one way or another.  Cardiovascular disease develops from high blood pressure, physical inactivity, and obesity.  Since America and other developed nations are not becoming more physically fit any time soon,  Medtronic and St. Jude will capitalize on fighting heart disease as it becomes increasingly more common. Their devotion to reducing cardiovascular diseases will be the main reason their businesses will succeed as the America’s population ages.  After having been beaten down so much over the past few quarters, MDT and STJ are attractive investments for now, and are sure to be winners in your long term portfolio.

- Brendan Stevens

Disclosure: None

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