The Motley Fool

Have £1,500 to invest? Here’s what I’d buy to double my money now

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.

Young woman smiling putting a coin inside piggy bank as savings for investment
Image source: Getty Images

The most direct route to double my money through stock market investments today is by looking towards the long term. More than one sector is thriving and looks like it has great prospects ahead. I reckon that if I invest in high-quality stocks in these sectors, I could see some solid returns in the years to come. 

Booming online sales industry

One example of these thriving sectors is the online sales industry. In the pre-Covid-19 time, it was already acknowledged that sales would turn increasingly digital overtime. But 2020 really brought that possibility home. 

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!

As we hunkered down when the coronavirus raged outside, online orders rose. From groceries to gadgets, consumers have been buying online like never before. 

Many FTSE companies have benefited from this trend. And if the latest numbers are anything to go by, they continue to do so. This, in my view, makes it a good time to think of investing in them. 

Just Eat Takeaway: runaway growth

One of these is the FTSE 100 food delivery provider, Just Eat Takeaway (LSE: JET). 2020 was, expectedly, an exceptional year for it. In its annual numbers released earlier today, it reports a 54% increase in revenues for the year. Its earnings before interest, taxes, depreciation, and amortisation (EBITDA) also grew by 18%. 

Moreover, it also became much bigger in 2020 through mergers and acquisitions. The merger of the UK’s Just Eat and Netherlands’ Takeaway.com, was approved in April last year, creating JET, just as the coronavirus was taking hold of our lives and business. 

In another couple of months after that, it also acquired US-based Grubhub to increase its footprint in this largest consumer market. 

In essence, we are now looking at a big multi-national delivery provider which is also growing fast. For me that is a good reason to invest in the stock. 

Risks to the investment explained

It does have risks associated with it, though. JET reported an operating loss for 2020, which would be an alarm bell to any investor. But it has a good explanation for it. It has to make significant investments to increase its market share in a competitive market. I would be less convinced of its ability to do so in a slow growing market, but I find it convincing here.

Moreover, competition is heating up. Deliveroo will soon get listed in London too. And it already has Amazon’s backing, which has shown exceptional logistics’ abilities in 2020. 

I was also cautious of what JET’s outlook for 2021 would be, till yesterday, because it may not be able to repeat last year’s performance as restaurants open up post-lockdown in June (the UK is still JET’s biggest market). But so far, things are going quite well on that front too. In the first two months of 2021, JET reports an 88% increase in orders compared to the same time last year. 

Should I invest?

JET was already a good stock to buy, and now more than before, I believe it can double my money over time. At its current share price of around £72, investing about £1,500 in it would buy me a nice round figure of 20 shares.

FREE REPORT: Why this £5 stock could be set to surge

Are you on the lookout for UK growth stocks?

If so, get this FREE no-strings report now.

While it’s available: you'll discover what we think is a top growth stock for the decade ahead.

And the performance of this company really is stunning.

In 2019, it returned £150million to shareholders through buybacks and dividends.

We believe its financial position is about as solid as anything we’ve seen.

  • Since 2016, annual revenues increased 31%
  • In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259
  • Operating cash flow is up 47%. (Even its operating margins are rising every year!)

Quite simply, we believe it’s a fantastic Foolish growth pick.

What’s more, it deserves your attention today.

So please don’t wait another moment.

Get the full details on this £5 stock now – while your report is free.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Manika Premsingh has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Amazon. The Motley Fool UK has recommended Just Eat Takeaway.com N.V and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. 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.