The Motley Fool

Forget gold! I think the best UK shares to buy now will help me retire early

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Stack of new one pound coins
Image source: Getty Images.

In uncertain times investors can turn away from UK shares and cling to so-called ‘safe-haven’ assets like gold. But this is a surefire way to lose money, in my opinion. Instead I’m focused on the best shares to buy now. 

The theory for gold goes that there is a limited supply of the precious metal. So, it will hold its value when all about it are losing theirs.

5 Stocks For Trying To Build Wealth After 50

Markets around the world are reeling from the coronavirus pandemic… and with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.

But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be a daunting prospect during such unprecedented times.

Fortunately, The Motley Fool UK analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global upheaval…

We’re sharing the names in a special FREE investing report that you can download today. And if you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio.

Click here to claim your free copy now!

But there’s a problem with gold. Even if prices continue to rise — and they dropped 7% from August to late October 2020 — you are staking your financial future on an asset that produces zero yield. No yield means no compound interest. 

Instead I’m picking the below as the best UK shares to buy now. And I think they will help me to boost my pension pot and get me through retirement with a healthy profit.

My best shares to buy now

£15,000 invested in the Scottish Mortgage Investment Trust (LSE:SMT) in October 2019 would be worth £30,000 in October 2020. That’s a juicy rise. Especially in the troubled, volatile times we all face.

So why do I think the SMT share price will continue its steady rise? 

Part of it is fund manager James Anderson’s forward-thinking outlook. “We look to add value over five-year time frames, preferably much longer“, he says.  

If we run through the trust’s biggest holdings, the largest at 12%, is Tesla. Now, not everyone loves Elon Musk. But his laser-focus on the future is admirable. Better lithium-ion battery technology to power the solar, electric vehicle and net-zero revolution will be critical. And Tesla has five gargantuan Gigafactories up and running or being built. It’s this infrastructure that, to my mind, matters much more than an electric car with an ‘Insane’ acceleration mode.

The second-largest holding is Amazon. I see Amazon benefiting strongly not just from the tectonic Covid-19-induced rise in online sales. But also from its web services and cloud division, which powers a whopping number of the world’s websites. I’ve run through that argument for the Motley Fool before. Suffice it to say, I’m a fan

Chinese e-commerce and consumer goods giants Alibaba, Tencent, and Meituan Dianping round out the list. I am pretty sure these mega brands will continue to take over the world. 

When to buy

As I write, the SMT share price is trading at a 1% premium to its net asset value (NAV). This has been as high as 4% as recently as July. So I think the best UK shares to buy now are also some of the cheapest, relative to their 63.8% share price gain over the same period. 

Yes, the dividend payment from SMT is pretty tiny. But it has increased every year for the last five. And I see this trend continuing. The more that Big Tech grows, the more the fund can pay out in dividends. 

A final note

SMT is like a tracker for the best shares to buy now, if only they weren’t so expensive and difficult to hold. A single Amazon share will set you back $3,252.30 alone! And you can forget about Chinese stocks and shares.

So I don’t see a downside in investing in Scottish Mortgage investment Trust. For me it’s just about finding an entry point and holding forever. And I can’t say that about many shares. 

One Killer Stock For The Cybersecurity Surge

Cybersecurity is surging, with experts predicting that the cybersecurity market will reach US$366 billion by 2028more than double what it is today!

And with that kind of growth, this North American company stands to be the biggest winner.

Because their patented “self-repairing” technology is changing the cybersecurity landscape as we know it…

We think it has the potential to become the next famous tech success story.

In fact, we think it could become as big… or even BIGGER than Shopify.

Click here to see how you can uncover the name of this North American stock that’s taking over Silicon Valley, one device at a time…

TomRodgers has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Our 6 'Best Buys Now' Shares

Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.

So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we're offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our 'no quibbles' 30-day subscription fee refund guarantee.

Simply click below to discover how you can take advantage of this.