I think investors can find some great bargains in the FTSE 100 index. With that in mind, here are two FTSE 100 shares to buy with £2k that I would acquire for my portfolio right now.
Shares to buy for growth
The first company on my list is the online stockbroker Hargreaves Lansdown (LSE: HL). Over the past decade, this group has gone from strength to strength by offering a low-cost service to investors across the UK.
Last year its growth accelerated as stuck-at-home consumers turned to stock markets to entertain themselves. The number of customers on its platforms jumped. And so did profits.
Some analysts thought this trend would not last into 2021. However, figures appear to show that it has. In a trading statement issued over a week ago, the company reported that it added 23,000 new clients between the 1 July and 30 September.
Assets under administration jumped 2% to £138bn, boosted by new business and market movements.
The company’s growth has been phenomenal over the past two years. But it remains to be seen if this trend will continue. Competition in the sector is growing, and Hargreaves needs to continue to invest in retaining clients. Competitors such as Freetrade are aggressively chasing market share with their zero-cost offering.
Despite these risks, I think the online stockbroker can continue to grow and develop its product. That is why I would buy the FTSE 100 business for my £2k portfolio today.
FTSE 100 global champion
As well as Hargreaves, I would also require Glencore (LSE: GLEN) for my portfolio. This company is the world’s largest commodity trading business. It also mines vital commodities such as coal and copper.
Commodity trading is a low-margin, high-volume business, and there are only a few companies in the world that have the scale to operate in the international market successfully. Glencore is one of those.
The group could be set for windfall profits this year. Commodity prices have charged higher off the back of rising demand and constrained supply. Analysts think this trend could continue for the next few years, especially in the copper market, as the demand for green energy accelerates.
Despite its potential, some investors may not be comfortable investing in this business due to its exposure to the coal industry. As other companies have been at exiting the sector, Glencore has been buying. That seems like the right decision now, with coal prices trading at record levels, but could incur significant financial liabilities later.
I would buy the FTSE 100 company for my portfolio despite this risk, considering its position in the global commodities market. As the global economic recovery after the pandemic gains traction, I think the enterprise should be able to capitalise on the surging demand for commodities for rebuilding.
Right now, this ‘screaming BUY’ stock is trading at a steep discount from its IPO price, but it looks like the sky is the limit in the years ahead.
Because this North American company is the clear leader in its field which is estimated to be worth US$261 BILLION by 2025.
The Motley Fool UK analyst team has just published a comprehensive report that shows you exactly why we believe it has so much upside potential.
But I warn you, you’ll need to act quickly, given how fast this ‘Monster IPO’ is already moving.
Rupert Hargreaves has no position in any of the shares mentioned. The Motley Fool UK has recommended Hargreaves Lansdown. 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.