Ever wondered why the number of Stocks and Shares ISA investors making millions with UK shares has ballooned recently?
There’s more than one way to skin a cat, as they say. And these ISA investors used a number of different strategies to make their fortunes. But one theme that connects many of these stock market millionaires is that they bought cheap stocks after the 2008 banking crisis. And then watched them balloon in value as the global economy gradually bounced back and investor confidence returned.
With a little research and a commitment to regular investment there’s no reason why you and I can’t expect to make spectacular returns from UK shares once the economy recovers from the coronavirus crisis either. This is why I’ve continued to buy British equities for my own Stocks and Shares ISA. And I plan to buy even more as the stock market crash leaves plenty of quality stocks trading at dirt-cheap prices.
3 possible millionaire-makers on my list
Let me talk you through two cheap UK shares I reckon could surge in value as the economic rebound kicks in:
- The upswing in consumer spending that accompanies economic rebounds provides a profits boost to sellers of leisure products. So why not buy music and audio products supplier Focusrite to ride this theme? Recent data revealing how spending on home leisure is outpacing other leisure goods provides is another reason to buy. It’s why profits at this UK share have continued to rise despite tough economic conditions. Today, Focusrite trades on a forward price-to-earnings growth (PEG) multiple of 0.6. And this makes it a steal.
- Strict Covid-19 lockdowns have played havoc with the tourism and leisure services sector in 2020. But there remain stacks of UK shares here that, like Focusrite, could thrive in the medium-to-long term. Take Everyman Media Group for instance. As Cineworld investors will know, the cinema sector is in severe difficulties because of the impact of lockdown requirements on ticket sales. The postponement of a string of major movie releases hasn’t exactly helped either. But, unlike Cineworld, boutique chain operator Everyman doesn’t have a mountain of debt on its books. It could well have the financial mettle to survive until the industry recovers and then deliver mighty profits growth. It’s a risky UK share sure. But a rock-bottom PEG ratio of 0.1 makes it worthy of attention, in my opinion.
Want to get rich with more UK shares?
These white-hot UK shares could make investors a lot of money during the inevitable economic recovery. But they’re not the only top stocks that could make even more ISA millionaires in the new decade. The Motley Fool’s huge catalogue of exclusive reports is packed with great shares like AG Barr. And they can sent completely free of charge to your inbox in a matter of moments.
Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Focusrite. 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.