I’ve been working hard to build my investment portfolio this year. And there are a number of UK shares that I’ve been buying.
High inflation, rising interest rates and geopolitical tensions have caused uncertainty in the FTSE 100 and the FTSE 250. So I’ve tried to follow Warren Buffett and be greedy when others are fearful.
But I’ve also tried to be selective. Throughout the year I’ve attempted to stick to the highest-quality companies I can find to maximise my long-term returns.
Aviva 8 ⅜% PF 8 ⅜% CUM IRRD PRF #1
I didn’t expect to be buying preferred stock in Aviva at the start of the year, the 7% dividend on offer just made too much sense. I think the investment will do well for me over time.
Unlike Aviva’s common stock, the preferred shares have a fixed dividend. That means that it won’t go up or down, making it much more predictable.
A 7% return looks attractive to me in this market. So I bought Aviva’s preferred stock with a view to holding it forever and reinvesting the dividends.
Diploma
The most recent addition to my collection of UK shares is Diploma. I’ve admired the business for some time, but it only recently reached a price that I thought was attractive.
First and foremost, I’m impressed by the company’s growth. At its most recent trading update, Diploma announced that its revenues had increased by around 30% compared to last year.
The stock trades at a high price-to-earnings (P/E) ratio, which brings some risk. But I think that the growth prospects for the business justify the high price tag.
Experian
I bought Experian shares because I think the business has one of the best economic moats of any UK stock. I’m really pleased to have had the opportunity to buy it.
Experian operates in an industry with little heavyweight competition and provides a product that’s difficult to replicate. I see this as a winning combination.
The share price has been falling as rising interests threaten the UK property market. But I expect this to be a short-term headwind for a strong business.
Halma
Halma is a company that I’ve only come to take an interest in during the last year. I didn’t know much about the business at the start of the year, but I’ve been impressed by what I’ve discovered.
As a Berkshire Hathaway shareholder, I appreciate a firm that acquires businesses and lets their managers get on with running them. That’s exactly what Halma tries to do.
That makes it a natural fit for my portfolio. And its impressive revenue and profit growth, combined with its strong balance sheet caused me to buy the stock in September.
Rightmove
The fallout from the Truss government’s ‘mini-budget’ announcement gave me a chance to buy Rightmove shares at a price below £4.80 per share. And I seized that opportunity with both hands.
I think that Rightmove is a terrific business. As an online platform it has relatively low costs and its size gives it a formidable advantage over competitors.
At the start of the year, I was watching Rightmove carefully, thinking the stock was overpriced. I’m delighted to have had an opportunity to invest at a level that I think is a good one.
