The recent stock market crash has created a brilliant chance for you and I to supercharge our investment returns. Demand for UK shares continues to struggle as the Covid-19 crisis rolls on. This is a wasted opportunity to get seriously rich.
The 2020 market crash is the best dip-buying opportunity since the 2008/09 banking crisis. Long-term investors who bought UK shares after that stock market crash got rich as the value of their shares rebounded.
Making a million after stock market crashes
The number of millionaires jumped as products like Stocks and Shares ISAs became insanely popular. And I can see UK share prices rocketing again during the 2020s as central banks continue on their huge stimulus packages. The same phenomenon pumped up asset prices during the last decade, of course.
Studies show that investors who buy UK shares and hold them for a decade or more make an average return of between 8% and 10% a year. I struggle to think of any other investment class that allows you and I to make such terrific, and reliable, returns. But investors have a chance to exceed even these rates of return by buying after stock market crashes. This is how the number of ISA millionaires ballooned in the 10 years following the banking crisis.
2 unmissable UK shares to buy today
Weak investor confidence means that an enormous number of quality UK shares continue to trade at rock-bottom prices. Here are two brilliant British stocks I’d buy after the stock market crash:
- Sylvania Platinum’s a great UK share to buy to latch on to current investor nervousness and to ride the eventual economic recovery. Fears over Covid-19 should keep on driving precious metals prices over the near term, assisted by the weakening US dollar. A recovering auto sector should push platinum and palladium prices higher further out too, along with this AIM company’s share price. I’d buy Sylvania because of its low forward price-to-earnings (P/E) ratio of 5 times and its monster 6% dividend yield.
- Surging demand for low-carbon energy makes Greencoat Renewables a terrific buy for this new decade too. Happily this wind farm operator also offers top value for money. Its P/E ratio for 2020 sits at 17 times whilst it boasts a big 5% dividend yield. This provides better value for money than many other UK shares involved in renewable energy. I’m confident that profits here should soar as it continues to add to its wind farm portfolio.
Getting rich with The Motley Fool
Greencoat Renewables and Sylvania Platinum are just a couple of the undervalued UK shares that could help you get rich. You can find even more brilliant dividend stocks by browsing The Motley Fool’s huge library of special reports and in-depth articles. They could even help you make a million.
