Discover How The Motley Fool Is Revolutionizing the Health Care Sector: A Deep Dive into Their Diverse Strategies

The Fool’s Take

Abbott Laboratories is a diverse healthcare company with four main divisions: medical devices, diagnostics, nutrition, and established pharmaceuticals. This variety means if one sector struggles, another can step up and help the company grow overall.

Right now, Abbott’s diagnostics division is facing challenges due to declining coronavirus testing. However, the medical devices sector has seen significant growth, boosting Abbott’s total revenue to $10.6 billion for the last quarter, a 5% increase from last year.

Abbott offers top-selling products, including Ensure in nutrition and the FreeStyle Libre glucose monitoring system in medical devices. They’re also working on new innovations, like the recently launched Lingo continuous glucose monitoring platform designed for wellness.

Ask The Fool

From D.L., Flagstaff, Ariz.: What’s a good way to invest in socially responsible companies?

One option is to invest in mutual funds or exchange-traded funds (ETFs) that focus on socially responsible companies. This approach lets experts pick the best stocks for you. Look for funds labeled with “ESG,” which stands for environmental, social, and governance factors. A few examples are the iShares ESG Aware MSCI USA ETF, Vanguard ESG U.S. Stock ETF, and Invesco ESG NASDAQ 100 ETF.

There are many ways to invest responsibly. You might choose companies leading in environmental efforts or avoid those you disapprove of. Just remember, no company is perfect in every area.

For more insights, visit GreenMoney.com or CSRwire.com.

From V.N., Bella Vista, Ark.: Why does the stock market go up and down daily?

The stock market reflects the value of thousands of companies. Prices change often based on news and investor sentiment. Good news typically raises stock prices, while bad news can lower them.

Abbott’s stock currently has a price-to-earnings (P/E) ratio of 22, which is reasonable for a company with strong growth and solid products.

The Fool’s School

Long-term care (LTC) insurance is worth considering. It helps cover costs if you need nursing home, assisted living, or in-home care later in life. However, it can be pricey. Genworth found that the average cost for a year of home health aides is around $75,500, while assisted living costs about $64,200, and a shared nursing home room averages $104,000.

About 56% of people turning 65 will require long-term care. So, researching LTC insurance now is smart. Currently, annual premiums for $165,000 benefits average $950 for men and $1,500 for women, as women typically live longer.

Buying a policy in your 50s often costs less. Some ways to save include selecting a shorter coverage period or a waiting period before benefits kick in. While your financial situation will play a big role in your decision, exploring this option is beneficial.

My Smartest Investment

From Anonymous: I’m 84 years old and have built my savings through a few smart financial decisions. I maxed out my retirement plan contributions and invested in no-load mutual funds.

My best move was converting as much of my retirement savings into Roth IRAs when they became available in 1998. It was a big tax hit, but my wife and I believed it was worth it. Now, our retirement income comes mainly from Social Security and our Roth IRAs, allowing us to withdraw money tax-free when needed.

The Fool responds: That’s fantastic! Roth IRAs are excellent tools for growing wealth while providing tax-free withdrawals in retirement.

Who Am I?

I started in 1869 when a German immigrant introduced financial services in Manhattan. I became part of the New York Stock Exchange in 1896 and helped companies, including Sears, go public. I’m known for emphasizing earnings potential over physical assets.

With a market value of $180 billion, I oversee more than $3 trillion in assets and generate over $50 billion annually.

Can you guess who I am?

Last week’s answer: Eli Lilly