Forget short-term pain! Consider these penny shares for long-term gain

Are you looking for classic penny shares to pick up on the cheap? Here are three that Royston Wild believes demand a close look.

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BUY AND HOLD spelled in letters on top of a pile of books. Alongside is a piggy bank in glasses. Buy and hold is a popular long term stock and shares strategy.

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Seeking out penny shares to buy isn’t at the top of most investors’ priorities right now. As we’ve seen, these small-cap stocks are among the most volatile when markers shake. Their smaller size and limited financial resources often makes them more vulnerable when economic conditions worsen.

Still, for long-term investors, market choppiness can provide a great dip buying opportunity. When conditions improve, earnings at many penny stocks can surge, launching their share prices higher.

Here are three sub-£1 shares I think demand a serious look today.

Michelmersh Brick

It’s not a shock to see Michelmersh Brick (LSE:MBH) shares tumbling. The prospect of rising interest rates is severe as surging oil prices drive inflation. In this climate, demand for new houses could topple.

Yet I think Michelmersh’s 14% share price drop over the past month merits attention. The company now trades on a rock-bottom price-to-earnings (P/E) ratio of 8.4 times.

Make no mistake, the long-term outlook for newbuild demand remains as robust as ever. Industry consultancy Marrons believes 5.4m more homes will be needed in England alone by 2040 to keep up with the booming population. In this climate, brick demand could rocket. Michelmersh is well placed to capitalise on this upswing — it manufactures 125m bricks a year.

Panthera Resources

Gold miner Panthera Resources (LSE:PAT) has dropped 13% in value over the last month. It’s tracked precious metals prices lower as the US dollar has strengthened. A rising buck makes it less cost-effective to buy and hold USD-denominated assets.

I’m confident that gold prices will rebound, however, as the geopolitical landscape becomes more volatile. Adding in fears over global growth, rising inflation, and the long-term direction of the dollar, I’m expecting bullion to rebound strongly as it did earlier in 2026.

Investors have plenty of junior gold miners to choose from. I like Panthera because of the quality of its African mining projects. In January, the company said its Kalaka project in Mali has an exploration target of 3m to 5m ounces of gold. That was up from its earlier estimates of roughly 3m ounces.

Brave Bison

Brave Bison (LSE:BBSN) shares have plunged 8% over the last month. They’ve dropped not only due to broader risk aversion as the Middle East crisis rolls on. Like other tech stocks, the company’s slumped over fears artificial intelligence (AI) will hammer its growth prospects.

This penny share makes and distributes online video content. It’s easy, then, to see how it could be impacted if AI takes off as some predict. Time will tell how far AI disrupts Brave Bison’s operations, though the company sees it as an opportunity and is embracing AI tools itself to drive growth. So far trading remains strong, and revenues here leapt 57% in 2025.

Today the firm trades on a P/E-to-growth (PEG) ratio of 0.2. That’s below the value benchmark of one, and makes the company — like those other penny shares — worth serious consideration.

Royston Wild has no position in any of the shares mentioned. 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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