When hunting for the best shares to buy, it can often be wise to look at what the experts are up to. After all, if professional investors are throwing big money around, there must be a good reason for it. And in the last few months, quite a few big players have been buying up UK shares.
For example, BlackRock recently disclosed it’s increased its stake in Endeavour Mining (LSE:EDV). Meanwhile, Norges Bank’s been snapping up shares in M&G (LSE:MNG).
So what’s behind these moves? And should investors consider following in their footsteps?
Betting on gold mining
Recent regulatory filings revealed that BlackRock’s increasing its stake in Endeavour Mining. Sadly, we don’t know the exact reasons why. Still, it’s no secret that gold prices are reaching record highs right now on the back of growing geopolitical uncertainty. And with Endeavour being a top-tier gold producer in West Africa, this tailwind has proven marvellous for its earnings. Even more so as operational momentum is ramping up production volumes at a time of rising prices.
Looking at the latest interim results, gold volumes were up 38% and, thanks to the rise of gold prices and fixed operating costs, EBITDA skyrocketed 226% from $349m to $1.14bn!
This surge in cash flow’s being allocated towards further project development as well as dividends and buybacks. And combined, the stock’s more than doubled since the start of 2025.
However, while there’s a lot to be excited about, it’s essential to recognise the risks surrounding this enterprise. West Africa’s not the most politically stable region. And even if the regulatory landscape doesn’t cause disruption, Endeavour’s earnings are almost entirely at the mercy of gold prices – something management has no control over.
Should interest rates fall and geopolitical tensions ease, investor interest in riskier assets like stocks could result in a massive allocation shift out of gold, dragging the price down and taking Endeavour’s earnings with it. While it can be easy to forget during the good times, gold prices are notoriously cyclical.
Opportunities in life insurance
As with BlackRock, we don’t know precisely why Norges decided to buy more M&G shares. But given the insurance giant’s high dividend yield, improving cash generation, and resilient fee-earning asset portfolio, it’s not the only investment group to have taken a liking to this business.
M&G’s enjoying the benefits of higher interest rates as well as the structural tailwinds of an ageing UK population. With demand for retirement products rising, management has multiple avenues to seek new growth. But of course, the firm doesn’t operate in a vacuum.
Other UK insurance titans are seeking to capitalise on the same tailwinds, putting pressure on M&G’s fees as well as client capital inflows. And with its financial assets exposed to the fluctuations of the debt and equity markets, just like Endeavour, the group’s performance may be adversely impacted by forces beyond its control.
The bottom line
There’s a lot to like about both these businesses. However personally, the risk profile’s too high for my tastes, especially given that other UK shares show far more promise, in my opinion. That’s why neither of these stocks is on my personal ‘buy now’ list. Instead, I’m looking elsewhere for investing opportunities.
