10 UK shares I’d buy to start investing in November

G A Chester sees this year’s stock market crash as a rare opportunity to start investing in UK shares at heavily discounted prices for long-term rewards.

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.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

The UK’s major stock market indexes — the blue-chip FTSE 100, the mid-cap FTSE 250, and the FTSE SmallCap — all remain significantly below their pre-pandemic highs. This means investors have a rare opportunity to purchase a diverse portfolio of strong businesses at heavily discounted prices. Here are 10 UK shares I’d buy to start investing today.

Blue-chip bargains

When investing in UK shares, I’d always start by looking to the FTSE 100 for some blue-chip cornerstone stocks.

Drinks giant Diageo owns a host of valuable spirits brands. In my view, its global operations, and labels like Johnnie Walker whisky and Smirnoff vodka, make it a world-class business. With its shares currently 29% below their previous high, I’d happily buy Diageo for the long term.

The same goes for BAE Systems, whose shares are trading at a 36% discount to their high of earlier this year. From heavyweight military hardware to cybersecurity, BAE is a powerhouse in the defence sector.

Pharmaceuticals and consumer healthcare group GlaxoSmithKline, and insurer and asset manager Legal & General are two more high-quality FTSE 100 businesses, in my view. Their shares are currently at discounts of 27% and 40% to their pre-pandemic levels. As such, both look very buyable to me as cornerstone stocks for the long term.

Mid-cap UK shares

With a strong foundation of blue-chip companies, I’d start diversifying by investing in some FTSE 250 stocks. I believe Biffa (28% discount), ITV (52%), National Express (68%) and Victrex (27%), are not only trading at attractive levels, but also have good long-term growth prospects.

  • Biffa is the UK’s leading sustainable waste management business. There’s a nice structural growth story here of regulation, recycling and energy from waste.
  • Integrated producer-broadcaster ITV has growth opportunities as it transforms into a digitally-led media and entertainment company.
  • National Express is well-positioned to continue its impressive international expansion in the transport sector.
  • World-leading producer of an organic thermoplastic polymer (polyether ether ketone), Victrex has growth opportunities across both its industrial and medical divisions.

All four companies have been adversely impacted by the coronavirus pandemic to a greater or lesser degree. However, due to their discount prices and growth potential, I’d be happy to buy them for the long term.

Small-cap UK shares

Some people avoid smaller companies when they start investing. Certainly, it can be a tricky pool to fish in. However, right now, I’m seeing the combination of a well-run business and distressed share price among a number of stocks in the UK small-cap space.

Two that currently look very buyable to me for the long term are Carr’s Group and Fuller, Smith & Turner. The former’s shares are down 36% from their pre-pandemic 2020 high, and the latter’s 48%.

Carr’s was founded in 1831 as a baking business. Today, it’s an international agriculture and engineering group. Its interests range from feed blocks for livestock to robotic and remote handling equipment for a range of industries.

Fuller’s was founded in 1845, and as the owner of an extensive UK estate of premium pubs and hotels will probably be known to more readers than Carr’s. However, I don’t expect the coronavirus pandemic to derail either business any more than any other global crisis of the last 175+ years.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

G A Chester has no position in any of the shares mentioned. The Motley Fool UK has recommended Diageo, Fuller Smith & Turner, GlaxoSmithKline, ITV, and Victrex. 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.

More on Investing Articles

Jumbo jet preparing to take off on a runway at sunset
Investing Articles

Down 70%+ since 2020, is IAG’s share price an unmissable bargain?

IAG’s share price is still down around 73% from its pre-Covid level, but with the business performing well last year,…

Read more »

A pastel colored growing graph with rising rocket.
Investing Articles

£17,000 of shares in the FTSE 100 dividend giant can make me £18,874 every year in passive income!

This FTSE 100 dividend superstar has an 8.8% yield with dividends projected to rise. It looks very undervalued to me…

Read more »

Investing Articles

2 top UK growth stocks I’m buying for my Stocks and Shares ISA in July

Looking for UK-listed growth firms to add to a Stocks and Shares ISA? Our writer highlights two he's planning to…

Read more »

artificial intelligence investing algorithms
Investing Articles

This overvalued growth stock makes Nvidia look cheap!

ARM Holdings is a growth stock that’s benefitted from the AI rally. Muhammad Cheema takes a look at whether this…

Read more »

Investing Articles

1 penny stock I’d buy today while it’s 63p

This penny stock's down 70% since last March, yet could be set for a big comeback as the firm rebuilds…

Read more »

Businessman use electronic pen writing rising colorful graph from 2023 to 2024 year of business planning and stock investment growth concept.
Investing Articles

Buying 8,617 Legal & General shares would give me a stunning income of £1,840 a year

Legal & General shares offer one of the highest dividend yields on the entire FTSE 100. Harvey Jones wants to…

Read more »

Man writing 'now' having crossed out 'later', 'tomorrow' and 'next week'
Investing Articles

£25k to invest? Here’s how I’d try to turn that into a second income of £12,578 a year!

If Harvey Jones had a lump sum to invest today he'd go flat out buying top FTSE 100 second income…

Read more »

Union Jack flag in a castle shaped sandcastle on a beautiful beach in brilliant sunshine
Investing Articles

2 lesser-known dividend stocks to consider this summer

Summer is here and global markets could be heading for a period of subdued trading. But our writer thinks there…

Read more »