£5k to invest in cheap UK shares? 3 stocks I’d buy in my ISA to make a million

I’m looking to get rich during the new bull market. Here are two cheap UK shares I think could help make plenty of new ISA millionaires, including me.

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.

Are you looking for strategies to become a stock market millionaire? Well, here’s one tried-and-tested plan which has made UK share investors fortunes for decades. Buying heavily-sold stocks following stock market crashes.

It’s a strategy that made hundreds (if not thousands) of Stocks and Shares ISA investors millions during the 2010s. These opportunistic investors snapped up top-quality UK shares whose prices had collapsed following the 2007-2008 financial crisis. They then got rich as these stocks rebounded in value amid improving economic conditions.

Share investors need to be extremely careful before splashing the cash, of course. The Covid-19 crisis continues to worsen and the outlook for many UK shares remains fraught with peril. But diligent investors who take the time to do proper research before buying have an opportunity to make a fortune in new bull market. Some might even get a seat in the millionaires’ club like those famous ISA investors.

macro shot of computer monitor with FTSE 100 stock market data in trading application

2 cheap stocks on my ISA radar

I’ve gone dip-buying for UK shares after the 2020 stock market crash. The last stock I bought for my Stocks and Shares ISA was soft drinks giant Coca-Cola HBC. I’m expecting this FTSE 100 stock to recover strongly from the Covid-19 crisis as the world reopens, driven by the industry-beating brand power of its soft drinks and its ever-expanding product ranges.

And there are many more cheap UK shares I’m thinking of buying in the days and weeks ahead. Here are two top stocks I think are ideal ISA buys in 2021:

  • I’d use HSBC Holdings’s failure to recover from the 2020 stock market crash as a dip-buying opportunity. Okay, the continuing public health emergency casts a cloud over the FTSE 100 bank in the near term. I’m confident the bank has a very bright future however, as heavy population and wealth growth in Asia — allied with low financial product penetration there — will light a fire under revenues growth later in the decade. Today, HSBC trades on a forward price-to-earnings growth (PEG) ratio of just 0.2. It carries a vast 5% dividend yield for 2021 too.
  • Advertising and marketing budgets are usually one of the fastest things to recover during upturns. And it’s why City analysts are expecting annual earnings at 4Imprint Group to rocket 270%-plus in 2021. This UK share makes a wide selection of marketing materials for businesses to dole out to clients. And it generates almost all profits from the US, a region whose economy will benefit from massive stimulus measures in the short-to-medium term. 4Imprint also trades on a forward PEG ratio of 0.2.

Making millions with UK shares

I don’t think share investors should delay buying UK shares right now. There are tonnes of five-star stocks that will rocket in value during the new bull market. And with the right investment strategy they can expect to make big money in the next decade. Possibly even a million.

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.

Royston Wild owns shares of Coca-Cola HBC. The Motley Fool UK has recommended 4imprint Group and HSBC Holdings. 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

Middle-aged Caucasian woman deep in thought while looking out of the window
Investing Articles

Should I buy these UK shares for my portfolio?

This Fool has been searching for ways to capitalise on the commodity moves via UK shares. Here’s what he’s watching.

Read more »

Illustration of flames over a black background
Investing Articles

Just released: April’s higher-risk, high-reward stock recommendation [PREMIUM PICKS]

Fire ideas will tend to be more adventurous and are designed for investors who can stomach a bit more volatility.

Read more »

A senior group of friends enjoying rowing on the River Derwent
Investing Articles

£9,000 in savings? Here’s a FTSE 100 stock I’d buy to target a £30,652 annual second income!

Our writer highlights one top FTSE 100 share that he thinks could help create a portfolio large enough for a…

Read more »

Light bulb with growing tree.
Investing Articles

62% down! Is the Ceres Power share price now a green energy bargain?

Annual results from the green energy firm showed a company on the cusp of doubling sales. So why has the…

Read more »

Investing Articles

3 mid-cap UK defence shares to consider buying in 2024

Defence budgets are soaring as global conflicts increase the threat landscape, so I'm examining the value proposition of three defence-related…

Read more »

Investor looking at stock graph on a tablet with their finger hovering over the Buy button
Investing Articles

Hargreaves Lansdown investors have been buying dividend stocks BP and Shell. Should I?

Cherished dividend stocks BP and Shell have outperformed the FTSE 100 index so far in 2024. Paul Summers takes a…

Read more »

Young Asian man shopping in a supermarket
Dividend Shares

A 5% yield? Here’s the 3-year dividend forecast for Tesco shares

Jon Smith flags up the positive momentum for Tesco shares following the release of the full-year results and looks at…

Read more »

Investing Articles

Yields up to 12.3% 3 top shares investors should consider for a second income

Searching for ways to make a market-beating second income? These popular dividend stocks are worth serious consideration, says Royston Wild.

Read more »