Stock market crash: Just £200 a month could help you make a million from UK shares!

Looking to make a million from UK shares? Royston Wild explains why the 2020 stock market crash presents a terrific opportunity for you and I to get rich.

| 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.

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.

Our message here at The Motley Fool is clear as crystal. Investors like you and I shouldn’t stop buying UK shares after a stock market crash. Market volatility is nothing new, and over the long run, those who have built a balanced portfolio of quality stocks are still likely to have made great returns.

In fact, it’s our belief that investors should use stock market crashes to boost their chances of getting rich. You and I should “be fearful when others are greedy and greedy when others are fearful,” as billionaire investment guru Warren Buffett famously said. This strategy can supercharge your eventual returns by letting you buy great stocks at cheap prices and then watch them balloon in value as profits climb on the back of improving economic conditions.

Chart displaying growth

3 cheap UK shares I’d buy today

Studies show that with a little discipline you may even be able to make a million with UK shares. It’s been proven that long-term investors make an average annual return of between 8% and 10%. So a 25-year-old who invests £200 a month in UK shares could potentially make a handsome £1.1m retirement pot by the age of 65.

Here are three top-quality UK shares that are on my watchlist following the crash. I’m expecting them to soar in value over the medium-to-long term.

  • Digital transformation specialist Kin & Carta is certainly worth serious attention, I feel. It trades on a forward price-to-earnings (P/E) ratio of 12 times right now. And it’s a multiple that fails to reflect the wide number of growth levers in its arsenal, whether that be through the fast-expanding e-commerce, cloud computing or artificial intelligence arenas.
  • Trifast meanwhile offers the beauty of low multiples — in this case a forward P/E ratio of 13 times — along with bulging dividend yields. For 2020 this UK share carries a yield of 3.5%. I’d buy the industrial fastenings company on expectations that demand from its core automotive and electricals markets will rebound strongly as the global economy recovers.
  • I’m also thinking of snapping up Persimmon. This FTSE 100 share trades on a forward P/E multiple of 13 times and carries a mighty 4.1% dividend yield. Last week the housebuilder resurrected the dividend in a sign of its sunny profits outlook. A huge and growing supply gap (which the BBC recently put at 1.2m homes) should keep demand for this UK share’s new-builds soaring for many years too.

More top stocks for savvy investors

Buying these UK shares at today’s prices is a great way to turbocharge your eventual returns. You can buy them today and watch them soar in  value as the global economy improves. These are just a taster of some of the quality stocks trading too cheaply following the stock market crash. And The Motley Fool can help you find even more with its huge library of articles and special reports. They could even push you closer towards becoming an ISA 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 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.

More on Live: Coronavirus Market Crash Coverage

Young mixed-race woman jumping for joy in a park with confetti falling around her
Investing Articles

2 FTSE 250 stocks (including a 7.1% yield!) I’d love to buy in September!

The FTSE 250 is home to some of London's best value stocks to buy. Here are two I'll be looking…

Read more »

Investing Articles

Is a stock market crash coming? Here’s what I’m doing now!

UK share prices are collapsing again as concerns over the global economy rise. This is what I'll be doing if…

Read more »

Stack of British pound coins falling on list of share prices
Investing Articles

Is the ITM Power share price too cheap to miss?

The ITM Power share price has taken a battering as fears over its widening losses grow. Does this represent a…

Read more »

Investing Articles

2 of the best cheap FTSE 100 shares to buy for 2022!

I'm searching for the best FTSE 100 shares to load up on for the new year. I think these blue-chip…

Read more »

A couple hug having moved into their new home
Live: Coronavirus Market Crash Coverage

Revealed! How first-time buyers receive £30k towards buying a home

According to new research, first-time buyers are beating record house prices by accessing an average of £30k from a particular…

Read more »

Investing Articles

4 penny shares to buy if stock markets crash in December!

I'm searching for the best cheap UK shares as stock markets threaten to crash again. Here are four top penny…

Read more »

Investing Articles

A dirt-cheap FTSE 250 dividend stock I’d buy today

I'm hunting for the best income stocks to buy for my Stocks and Shares ISA. Here's a top-class FTSE 250…

Read more »

Investing Articles

A dirt-cheap UK growth share I’d buy for November!

Investor demand for this UK growth share has cooled in recent weeks. Here's why I think this could prove to…

Read more »