Don’t listen to the critics. It really is possible to make a million or more by investing solely in UK shares. Just ask the hundreds and hundreds of Stocks and Shares ISA investors who became millionaires by buying stocks during the 2010s.
These investors made millions by buying quality UK shares that were sold heavily during the 2008–09 banking crisis. They then simply sat back and raked it in as these stocks rose in value and dividend payouts improved. But one doesn’t haven’t to invest heavily following the 2020 stock market crash with a view to becoming a stock market millionaire.
A commitment to regular investing can genuinely help you make a million (or more) with UK shares. History shows us that long-term investors tend to enjoy an average yearly return of 8% to 10%. This means that someone who invests £400 a month in something like an ISA can realistically expect to have made a whopping £1,008,950 over 32 years. There’s plenty of help on call from experts like The Motley Fool to help one get stinking rich from UK shares too.
2 perfect UK shares for an ISA
With this in mind here are two quality UK shares I’m thinking of adding to my own Stocks and Shares ISA. I think they can be considered ‘too cheap to miss’ at recent prices:
#1: Hill & Smith Holdings
You might not have heard of Hill & Smith Holdings before but its everyday products can be found everywhere. The business manufactures roadside furniture like safety barriers, bridge parapets, street light columns, and signage. It also supplies an array of protection products for use by roadside workers. This puts it in great shape to generate brilliant profits as infrastructure spending in Britain and the US ignites. Highways England alone is set to spend an eye-popping £27.2bn on this country’s road system through to 2025.
No wonder City analysts reckon Hill & Smith’s annual earnings will surge 33% in 2021. This leaves the UK share trading on a rock-bottom price-to-earnings growth (PEG) ratio of 0.5 for next year, too.
#2: Ibstock
I already own shares in British brickbuilder Ibstock. But its whopping share price fall in 2020 (the company’s trading at a 33% discount to what it was last New Year’s Eve) is tempting me to increase my holding. The UK’s housing crisis means that built rates are set to accelerate sharply, and in recent days the housing ministry reaffirmed its plans to create 300,000 new homes a year by the middle of the decade. Ibstock, then can look forward to soaring demand for it construction products long into the future.
Ibstock will see earnings rocket 178% in 2021, according to City analysts. As a consequence this UK share trades on a ridiculously-low PEG ratio of 0.1 at current prices. This is a share I bought back in 2017 and plan to hold until 2030 at least.
