2 top value stocks I’ve bought to hold for 10 years!

I’ve been searching for the best value stocks to buy. And I think building my stakes in these top UK shares could be a great idea.

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The FTSE 100 and FTSE 250 are packed with brilliant value stocks following market volatility in 2023.

I already own the following UK shares in my investment portfolio. And at current prices I’m thinking about buying more of both. Here’s why I plan to own these top stocks for the next decade.

TI Fluid Systems

Tough trading conditions have smacked profits at car builders and auto component builders in recent times. TI Fluid Systems (LSE:TIFS) — a UK share that I currently own — has been a big casualty of car plant shutdowns during the pandemic and chip shortages in the recovery that have limited motor production.

The company’s share price has tumbled 60% during the past 18 months. But excellent trading news last week suggests now could be a good time to increase my stake.

TI Fluid Systems manufactures hardware that carries and holds fluids inside your car. We’re talking about fuel tanks, brake lines, coolant modules, and multiple other critical parts that make travel possible.

It’s just announced that revenues jumped 14.9% (at constant exchange rates) in the first quarter, driven by product launches and inflationary recoveries. The result was especially impressive given that global light vehicle production rose by just 5.7% between January and March.

The company’s share price rocketed following Wednesday’s market update. Yet at current levels it still offers excellent value for money.

City analysts think annual earnings here will rise 127% in 2023. This leaves TI Fluid Systems trading on a forward price-to-earnings (P/E) ratio of just 7.3 times.

Brokers are tipping double-digit profits growth through to the middle of the decade, too, as the car industry bounces back. It’s also because sales of electric vehicles (EVs) look set to surge.

EVs provides exceptional growth possibilities for TI Fluid Systems. This is because the amount of fluid-related content in battery- and hybrid-powered vehicles is far higher than in those running on internal combustion engines. As build rates boom, this FTSE 250 company could see sales volumes balloon.

A fresh downturn in the auto market could disrupt these bright profits forecasts. But on balance I think this growth share remains a top buy.

Legal & General Group

Legal & General (LSE:LGEN) is the most recent addition to my Stocks and Shares ISA. Its excellent all-round value means I’m already thinking about building my position.

The FTSE 100 firm trades on a forward P/E ratio of 6.9 times. Meanwhile its dividend yield sits at a massive 9% for 2023.

I’m tipping Legal & General’s profits to soar over the next decade. As a major provider of retirement products like pensions and annuities it’s well placed to capitalise on rapidly-growing elderly populations.

I’m also expecting demand for investment management services to ramp up significantly. This will be driven by rising life expectancies, increasing emerging markets wealth, and growing interest in non-traditional investment products.

Legal & General operates in a highly competitive environment. But the company’s formidable brand power helps to mitigate this threat. I believe the firm will deliver excellent investor returns during 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 has positions in Legal & General Group Plc and Ti Fluid Systems Plc. The Motley Fool UK has no position in any of the shares mentioned. 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.

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