We’ve all dreamed of making millions by investing in UK shares. Yet it’s a goal that only a fraction of British share investors achieve. It doesn’t have to be this way though. If you’re brave enough to buy UK shares after the recent stock market crash, you can seriously boost your chances of creating a fortune.
If you want to make better returns than the herd, you have to think differently from the herd. And today this means buying UK shares while most other investors sit on the sidelines. You don’t just have to take my word for it though. The many hundreds of Stocks and Shares ISA investors who made millions by buying after the 2008/09 stock market crash do the talking for me.
Don’t fear stock market crashes!
It’s a perfectly normal response to get agitated when stock market crashes happen. No one wants to see the value of their UK shares plummet in value. It undoes all of your hard research, at least in the short term, and makes a mockery of all your hard saving.
However, plenty of share investors panicked following the crash of early 2020 and sold everything in sight. They forgot one of the key lessons of investing: stock market crashes don’t stop patient long-term investors from making terrific returns on their money.
Studies reveal that those who buy UK shares and hold them for 10+ years make an average annual return of between 8% and 10%. Sure, stock markets crash. But in the subsequent years, share prices always recover. Those who hold on and resist the temptation to sell can ride the subsequent rebound and watch the value of their investments rise again. Those who sell their shares during the depths of market crashes… well, they can’t.
Making millions with UK shares
This leads me back to my original point. Share buyers are always in short supply when stock markets crash. And in the case of the 2020 crash, dip-buying activity remains muted a whole six months after the initial drop. Those brave investors who put their heads above the parapet and buy UK shares in times like these are the ones who make extraordinary returns.
They use stock market crashes as a chance to buy the high-quality UK shares that panicked sellers have chucked out. By buying them at dirt-cheap prices too, they can ride that inevitable recovery in global stock markets and make boatloads of cash in the process. This investment strategy helped more than a thousand Brits make millions in products like Stocks and Shares ISAs following the 2008/09 stock market crash.
There’s no reason why you and I can’t achieve the same goals this time round. Sure, the economic outlook might be as clear as mud. But with the help of The Motley Fool and its huge library of special reports, you can find excellent investment opportunities and avoid some classic investor traps. You might even make a million in the process.
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.