3 safe-haven shares I’d buy as the economy cools

Times are tough for UK plc as economic conditions deteriorate. It’s why I’m considering buying these ‘safe-haven’ shares 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.

Young man exercising in his house gym, doing push ups

Image source: Getty Images

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.

I’m searching for the best safe-haven shares to invest in today. I think these top stocks could grow profits even as economic conditions worsen.

Spire Healthcare

Private hospital operator Spire Healthcare (LSE: SPI) is a UK share I’ve already bought for my Stocks and Shares ISA. I’m considering upping my holdings too as waiting lists for free treatment keep growing.

The British Heart Foundation said on Thursday that wait times for cardiac care grew for a 22nd straight month in April to an all-time high of 319,366 people. Lists are climbing across the NHS and this is driving patient numbers at the likes of Spire through the roof. Private patient revenues at this particular provider rose at a record pace in 2021.

I think stocks like this could be better placed than many others to weather the economic downturn as well. This is because spending on healthcare tends to remain broadly unchanged, even during bad times. Good health is something we can’t afford to take for granted.

I’m considering buying more of Spire despite the threat that rising staff costs pose to profits.

The Gym Group

Investing in companies that offer cheaper goods and services could work for me as consumer spending power falls. One way I’m thinking of doing this is by buying The Gym Group (LSE: GYM) shares.

People don’t stop working out when times get tough. They might however choose to do it at lower cost by joining a gym with cheap membership costs like The Gym Group. In fact, this operator’s low-cost model has helped turbocharge member levels since re-opening last April. It had 718,000 on its books at the end of 2021, up from 547,000 10 months earlier.

I could be tempted to buy the share today and hold onto it for the long haul too. I like its plans to significantly expand its gym network from 206 sites to above 300 by 2025.

The fitness industry is competitive, and The Gym Group will have to paddle hard to keep growing membership numbers. Still, I find the rate at which it has added members over the past year highly encouraging.

Bloomsbury Publishing

Reading is a relatively cheap pastime. So it makes companies involved in the book trade like Bloomsbury Publishing (LSE: BMY) attractive investments for me during this cost of living crisis.

The company’s exceptional trading news this week has boosted my appetite. Sales and profits rocketed 24% and 40% respectively to new highs in the last fiscal year (to February) as the upswing in book demand seen during the pandemic carried on.

I like Bloomsbury for other reasons too. It’s the home of Harry Potter, a cash cow whose sales continue to grow decades after launching. I also like the company’s successful foray into the realm of academic literature.

I’d buy the business even as soaring paper prices put profit margins under strain.

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 in Spire Healthcare. The Motley Fool UK has recommended Bloomsbury Publishing and The Gym Group. 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

Warren Buffett at a Berkshire Hathaway AGM
Investing Articles

1 Warren Buffett stock I’m buying now

Coca-Cola is the fourth-largest holding in Warren Buffett’s Berkshire Hathaway. I’ll explain why I’m following Buffett and buying more.

Read more »

Concept of two young professional men looking at a screen in a technological data centre
Investing Articles

I bought 4,403 Lloyds shares in June and 4,856 in September. Here’s what they’re worth now

Harvey Jones thought he was bagging a FTSE 100 bargain when he bought Lloyds shares on two occasions last year.…

Read more »

Young woman holding up three fingers
Investing Articles

I’m itching to buy these 3 hidden FTSE gems in a Stocks and Shares ISA

Harvey Jones is keen to add these three FTSE 100 companies to his Stocks and Shares ISA before April. Only…

Read more »

Close up of a group of friends enjoying a movie in the cinema
Investing Articles

How I’d try and turn just £1 a day into a fabulous £54,485 passive income for life

By investing small, regular sums in FTSE 100 shares I can potentially generate a huge passive income stream. It won't…

Read more »

Warren Buffett at a Berkshire Hathaway AGM
Investing Articles

I’d aim for a million buying under a dozen shares

Christopher Ruane explains why less could be more when it comes to building a share portfolio if he wants to…

Read more »

Investing Articles

Rolls-Royce shares are up over 1,000% since 2020! Am I too late to buy?

Rolls-Royce shares now cost over tenfold what they did in the firm's 2020 rights issue. Our writer thinks they may…

Read more »

Investing Articles

1 top UK growth stock for my tech portfolio in 2024

Up 30% in just one year, this growth stock looks positioned to continue on the path of substantial gains, according…

Read more »

Buffett at the BRK AGM
Investing Articles

I’d follow Warren Buffett to target effortless passive income

Warren Buffett knows a thing or two about building passive income streams. By learning from the Sage of Omaha, so…

Read more »