2 FTSE 100 shares I’d buy to try and become a Stocks & Shares ISA millionaire!

I think these high-performing FTSE 100 shares could help me make a million with my ISA by the time I retire. Give me a few minutes to explain why.

| 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 mixed-race woman jumping for joy in a park with confetti falling around her

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.

Past performance is not a reliable guide to the future. But history shows that a balanced portfolio of FTSE 100 shares can help Stocks & Shares ISA holders like me build a big nest egg for retirement.

Britain’s leading UK share index delivered an average annual return of 7.48% between 1984 and 2022. Had I invested £25,000 at the start of that period and sat back, I’d have a very decent £234,138.06 sitting in my bank account.

That’s not bad. But I think I can do better.

Rather than investing in something like a FTSE 100 tracker fund, I prefer to search for individual stocks to buy. The two I’m currently considering buying are Ashtead Group (LSE:AHT) and JD Sports Fashion (LSE:JD.).

Millionaire maker

Why these particular stocks, you ask? Well, during the 2010s they were among the Footsie’s best-performing stocks.

Take Ashtead, for example. An investment of £30,000 in the rental equipment provider on 2 December 2009, would have turned me into an ISA millionaire, as the chart below shows.

Source: IG Group

I’m confident that it could continue delivering smashing returns during the 2020s and beyond, too.

To reiterate my earlier point, there’s no guarantee that past returns can be replicated. But here is why I believe those FTSE 100 shares could help me in my quest to become a stock market millionaire.

Rental giant

I already own Ashtead shares in my Stocks & Shares ISA. Its successful acquisition-based growth strategy has formed the bedrock for electrifying profits (and thus share price gains) over the past decade.

And I’m hopeful this trend will continue: strong cash generation certainly gives it the means to continue growing its market share through additional bolt-on buys.

I’m also expecting market conditions to steadily improve over time, giving its revenues a big kick.

There is some uncertainty in the near term as high interest rates curb construction activity. But predictions of solid economic growth in the US — allied with increased infrastructure spending across its North American and UK markets — bode well for Ashtead over the long term.

Sports star

An investment of £30,000 in JD Sports on 2 December 2009 would have turned into £736,320 a decade later. While it could deliver disappointing returns in the near term, I still expect its shares to produce tasty returns for the 2020s as a whole.

Athleisure demand is under pressure at the moment amid weak consumer spending levels. This is especially the case in the FTSE 100 company’s US territory. However, the long-term outlook for this fashion segment remains highly promising, and especially at the premium end of the market where JD specialises.

Analysts at 360iResearch think the global athleisure market will grow at an annualised rate of 18.8% between 2023 and 2030. And JD, through its worldwide expansion drive, could be in a great place to capitalise on this.

I’m confident both these FTSE 100 shares will remain star performers. And I plan to search for more winning stocks to aid me in my quest to become a stock market millionaire.

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 Ashtead Group 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.

More on Investing Articles

Investing Articles

Here’s the HSBC share price forecast through to 2026

Shares in this FTSE 100 bank have surged in 2024, but what’s next for the HSBC share price? Dr James…

Read more »

Pink 3D image of the numbers '2025' growing in size
Investing Articles

Can Rolls-Royce shares continue to outperform in 2025?

Stephen Wright thought Rolls-Royce shares were undervalued heading into 2024. After a 90% rally, is this still the case with…

Read more »

Investing Articles

Here’s what Warren Buffett says is ‘always a bad investment’

Working out what to invest in can be difficult. But there’s one asset that Warren Buffett says long-term investors should…

Read more »

Investing Articles

Up 40%! Is it too late for me to grab some shares of this skyrocketing FTSE 100 giant?

With the share price soaring, our writer’s kicking himself for not buying this FTSE 100 share when he reported on…

Read more »

Investing Articles

Down 54%, here’s one of my favourite FTSE 100 bargain shares for 2025!

The FTSE 100 remains packed with value shares despite its strong showing this year. Here's one fallen angel I think…

Read more »

Snowing on Jubilee Gardens in London at dusk
Investing Articles

A cheap FTSE 250 share I think could fly during the Santa Rally!

The FTSE 250 has historically delivered its best results during December. Value shares like this one could be in prime…

Read more »

Investing Articles

Why the FTSE 100 may outperform the S&P 500 as the Santa Rally begins!

History shows us that buying FTSE shares in December can deliver brilliant returns. Here are our man Royston Wild's plans…

Read more »

White female supervisor working at an oil rig
Investing Articles

Is soaring Rockhopper Exploration a hidden gem on the UK stock market?

This UK stock has outperformed the wider market over the past month amid renewed optimism around its Falkland Islands projects.

Read more »