2 of the best stocks to buy with £10k and 10 years to wait

I’m busy searching for UK shares to add to my Stocks and Shares ISA. Here are three that I think could be the best stocks to buy today.

| More on:

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.

sdf

UK share markets are edging higher again as hopes over the economic recovery improve. Things could unravel quickly, however, as the Covid-19 pandemic rolls on and other worries like trade wars and soaring inflation linger. But as a long-term investor, this hasn’t stopped me in my quest to find the best stocks to buy for my Stocks and Shares ISA.

Extreme share price turbulence due to social, economic or political events is nothing new. Yet history shows us that UK share prices always roar back following such crises. This is why the average long-term investor enjoys a handsome (if not guaranteed) average annual return of 8%.

I’ve already invested in Keywords Studios in recent days. Here are three more of what I feel are some of the best stocks to buy too. Like other UK shares I own, if I had a lump sum to invest, I’d buy them with a view to holding them for at least a decade.

On Cloud 9

I believe that the rise of home-working in the wake of last year’s Covid-19 outbreak presents good investment opportunities. And I’d do this by investing in Iomart Group (LSE: IOM). This a UK share that offers cloud computing services through its network of data centres spanning Europe, North America and Asia-Pacific.

A new BBC survey reveals how companies like Iomart could be some of the best stocks to buy to ride the digital revolution. More than 80% of the firms that were surveyed said they would “embrace a mix of home and office working”, the broadcaster said. Employees of these firms would be “encouraged to work from home two to three days a week”, the BBC added. The 50 companies that were questioned employ a total of 1.1m people, a figure that illustrates the huge revenues potential for companies that make remote working possible.

Bear in mind though, Iomart has some very big industry rivals. This means that it faces significant pressures when it comes to both product price and quality. The cloud computing market is expanding rapidly, but this UK share isn’t totally without risk.

One of the best property stocks to buy?

I also believe that Grainger (LSE: GRI) could be another top UK share to buy right now. I certainly believe that the professional landlord is one of the best property stocks to buy as rents in Britain go from strength to strength.

A report by estate agency Savills suggests that average rents will rise 17% during the five years to 2025. It’s a prediction that reflects the expectation that tenant demand should continue outpacing property supply, exacerbated by the large number of buy-to-let landlords leaving the sector due to increasing red tape and higher tax charges.

It’s true that changes to the regulation of the rentals market could hit Grainger’s profits further down the line. But right now, I think it’s a great UK share to buy for the next decade.

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 Keywords Studios. The Motley Fool UK has recommended Iomart Group and Keywords Studios. 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

many happy international football fans watching tv
Investing Articles

Is this FTSE 250 stock gearing up to more than double its market cap by October?

Our writer considers the implications of a recent stock market announcement for the share price of this FTSE 250 retailer.…

Read more »

Inflation in newspapers
Investing Articles

3 overlooked UK shares growing dividends faster than inflation

Mark Hartley highlights three lesser-known UK shares offering inflation-beating dividends, while noting key risks investors should watch.

Read more »

Belfast City Sunset with colorful twilight over Lagan Weir Pedestrian and Cycle Bridge spanning over the Lagan River in downtown Belfast
Investing Articles

My 3 ‘secret’ rules I always follow when hunting passive income stocks

Mark Hartley reveals three perhaps not-so-secret tips he uses to ensure his passive income strategy doesn't come back to bite…

Read more »

Man riding the bus alone
Investing Articles

Is there a good reason to consider Greggs shares?

Greggs' shares have been in a state of decline over the past 12 months. However, Dr James Fox remains concerned…

Read more »

Thoughtful man using his phone while riding on a train and looking through the window
Investing Articles

What’s going on with the Jet2 share price now?

The Jet2 share price pulled back after its preliminary results were released on Wednesday. Dr James Fox explains why this…

Read more »

Stack of British pound coins falling on list of share prices
Investing Articles

Is ‘SIMAGA’ the secret to avoiding stock market crashes?

Is there any way for investors to avoid stock market crashes? This method worked for centuries, but is now breaking…

Read more »

Middle-aged black male working at home desk
Investing Articles

Here’s a cheap FTSE 100 share to consider buying today and holding for 10 years!

Driven by a new commodities supercycle, I'm expecting this FTSE 100 mining stock's shares to take off between now and…

Read more »

Businessman using pen drawing line for increasing arrow from 2024 to 2025
Investing Articles

£10,000 invested in Palantir stock 5 years ago is now worth…

Palantir stock's exceeded the expectations of probably the most bullish analysts. But Dr James Fox isn’t convinced by the current…

Read more »