If you’re looking for a long-term investment, look no further than Philips. There is a lot to like about Philips. (Or Koninklijke Philips Electronics N.V., if you prefer the full name for use at cocktail parties.) For one thing, it is an international company, so it isn’t dependent on one country’s economy to prosper. Plus, it is in two markets that I see as being high growth over the next decade or so: diagnostic imaging and light-emitting diodes.

With obesity and cancer rates increasing, Philips should sell plenty of its cardiology and oncology diagnostic machines in the foreseeable future. The company also produces imaging systems, ultrasound technology, and monitoring solutions.

Light-emitting diodes - LEDs for short - are the future of lighting. They operate with much lower power requirements for a much longer period of time. Ann Arbor, MI has already installed 100 LED streetlights in its downtown. The city estimates that an initial retro-fit of 1,000 LED streetlights will save them $100,000 annually. As more and more cities take advantage of the savings that come with a conversion to this technology, Philips stands to make a substantial amount of money. And as LED prices fall (they are still rather prohibitive for residential lighting), there will be other opportunities for Philips to profit. 

Philips would be a good addition to your portfolio, even if the real payday may be a few years off.

[Ed. Note: Christian Hill is the resident Research Analyst for Investor's Daily Edge (IDE). Get more clear recommendations and practical strategies for protecting your portfolio and multiplying your money from Christian and the rest of the IDE team. Sign up here.]

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