Best British shares to buy in August

We asked our writers to share their ‘best of British’ stocks to buy next month, including three FTSE 100 giants!

| 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.

photo of Union Jack flags bunting in local street party

Image source: Getty Images

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.

Every month, we ask our freelance writers to share their top ideas for shares to buy with investors — here’s what they said ahead of August!

[Just beginning your investing journey? Check out our guide on how to start investing in the UK.]

Antofagasta 

What it does: Antofagasta is a FTSE 100 mining stock that owns a string of copper projects in northern and central Chile. 

By Royston Wild. I think copper prices could rise in the weeks and months ahead, pulling share prices across the mining complex higher. Antofagasta (LSE:ANTO) is a UK stock I’d buy to capitalise on this scenario. 

Copper demand from major consumer China remains solid and should remain robust as the country’s central bank steps in to support the economy. Meanwhile, production of the bellwether commodity remains mixed and scrap markets are tight.  

Copper stocks at the London Metal Exchange are already alarmingly low and dropped to levels not seen since late 2021. Such tightness bodes well for prices during the second half of the year. 

I’d buy Antofagasta shares to benefit from any near-term boost to metal prices — and I’d aim to hold onto them for the long haul. I expect demand for its essential product to rise strongly as renewable energy investment heats up and electric vehicle sales steadily increase. 

Royston Wild does not own shares in Antofagasta. 

HSBC

What it does: HSBC is one of the world’s largest banks, with operations in over 60 countries.  

By Charlie Keough. It’s been a strong year for the HSBC (LSE: HSBA) share price, up around 20% as I write. And I expect this to continue. 

My main attraction to the bank is its global diversification. It operates in a host of regions, with a large proportion of its profits generated from Asia. This makes the business less prone to country-specific issues, such as inflationary pressures in the UK.  

An additional attraction to HSBC is its dividend yield. The stock currently offers a yield of 4.8%, sitting above the FTSE 100 average. To add to this, it also looks cheap, with a price-to-earnings ratio of just 7.  

Although a benefit, the bank’s global exposure could be cause for concern. And with nations such as China posing a threat with ongoing geopolitical tensions, this could hinder HSBC’s operations.  

However, I think the opportunities that the firm’s emphasis on Asia offers in the long term outweigh any potential short-term concerns. As such, HSBC is my pick for August.  

Charlie Keough does not own shares in HSBC.  

MJ Gleeson

What it does: Sheffield-based MJ Gleeson builds homes and promotes land through the planning system for residential development

By Paul Summers: The best time to buy shares is often when most people won’t. As insultingly simple as that sounds, this is why I think MJ Gleeson (LSE: GLE) is worth a look.

A toxic combination of rising interest rates and the cost-of-living squeeze has sent the shares down nearly 20% in the last year.

Of course, there could be worse to come. However, the small-cap’s focus on affordable housing in the North of England and the Midlands could be its saving grace. 

Since the need for new homes won’t disappear, MJ Gleeson might see more resilient demand than its more luxury-focused peers. In fact, any chinks of light could see the stock soar in value given that a recession appears priced-in. 

Although the income can never be guaranteed, there’s also a secure-looking 3.3% dividend yield to keep investors patient until sentiment recovers. 

Paul Summers does not own shares in MJ Gleeson.

Scottish Mortgage Investment Trust

What it does: Scottish Mortgage invests globally in high-growth companies across both public and private markets.

By Ben McPoland. I think the macroeconomic picture is starting to look better for Scottish Mortgage Investment Trust (LSE: SMT). Inflation is finally cooling and we might be nearing the end of the rate hiking cycle.

Indeed, interest rates might even start to come down next year, which would be a bullish development for the sort of high-growth stocks that the trust holds. 

Not that any of this optimism is currently reflected in Scottish Mortgage shares. As I write, they’re still trading on a net asset value (NAV) discount of 19%. Clearly the market is yet to be convinced, which is a concern.

Yet I can’t help thinking this presents an opportunity for long-term investors. I mean, the trust’s portfolio is packed with companies at the forefront of artificial intelligence (AI). From Nvidia and ASML to Amazon and ByteDance (owner of TikTok).

Where else am I going to get discounted exposure to this revolutionary theme right now? Not many places, it seems, except with this trust.

If I didn’t already own so many shares, I’d buy more now.

Ben McPoland owns shares in ASML, Nvidia and Scottish Mortgage Investment Trust.

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.

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. HSBC Holdings is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool UK has recommended ASML, Amazon.com, HSBC Holdings, and Nvidia. 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

Happy young plus size woman sitting at kitchen table and watching tv series on tablet computer
Investing Articles

Could Raspberry Pi shares hit £5 by 2030?

After a strong start out of the blocks this month, our writer asks whether Raspberry Pi shares could move further…

Read more »

Close-up of British bank notes
Investing Articles

Five 5%+ yielders I’d buy for an ISA today!

Our writer identifies a handful of FTSE 100 and FTSE 250 firms each yielding at least 5% he'd happily buy…

Read more »

Front view photo of a woman using digital tablet in London
Investing Articles

5 stocks with 5%+ yields I’d love to buy and hold in a Stocks and Shares ISA

Harvey Jones is keen to add these five FTSE 100 high-yielders to his Stocks and Shares ISA, ideally before they…

Read more »

A young Asian woman holding up her index finger
Investing Articles

I’d target £880 of passive income annually, spending £10K now on this FTSE 100 share

Our writer explains how he would add to his diversified portfolio happily by investing in this FTSE 100 passive income…

Read more »

Light trails from traffic moving down The Mound in central Edinburgh, Scotland during December
Investing Articles

3 reasons I think the Scottish Mortgage share price could keep rising

Christopher Ruane explains a trio of reasons he thinks the once-mighty Scottish Mortgage share price could be set to increase…

Read more »

Syringe and vial on blue background
Investing Articles

Is this forgotten FTSE share about to make investors rich all over again?

Not long ago, this FTSE share was all the rage before demand dropped off and things went south. Is it…

Read more »

Warren Buffett at a Berkshire Hathaway AGM
Investing Articles

I’d use these 5 Warren Buffett approaches to build wealth

Christopher Ruane outlines a handful of investing lessons from billionaire Warren Buffett that he thinks can help a small investor…

Read more »

US Stock

Nvidia stock: 3 things investors need to know as it surges towards $150

Nvidia is a stock that's had an extraordinary run in 2024. Edward Sheldon highlights some important things investors should know.

Read more »