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Stock market rally: this is how I’m buying UK shares in an ISA to get rich

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UK share markets are continuing their rapid ascent as the news surrounding the Covid-19 crisis gets ever brighter. Take the FTSE 250 for example. Britain’s second-tier index is now trading 1% higher in Tuesday business and, at around 19,760 points, is now trading at levels not seen since the end of February.

Positive news surrounding the hunt for a Covid-19 vaccine has sent UK share prices through the roof this month. The FTSE 100’s up 15% since the beginning of November and could gain on further news on the vaccine testing front. Yesterday, was the turn of AstraZeneca to announce terrific testing news of its own.

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Additionally, UK share prices have gained following confirmation that England’s second Covid-19 lockdown will cease on 2 December.

The UK national flag in front of Canary Wharf skyscrapers where professionals trade shares for a living.

Thinking long-term

So the Covid-19 news flow has been more favourable for UK share markets in recent weeks. But could British stock investors be getting a bit too giddy by piling in again?

Unless one has a crystal ball, it’s impossible to say. Developments on the Covid-19 front have certainly been more promising in recent weeks. News that Donald Trump is preparing for an orderly transition of power to president-elect Joe Biden has soothed investor nerves too.

Still, there are plenty of reasons to remain concerned about the global economy. Big questions over the effectiveness and the rollout of a coronavirus vaccine are still to be answered. And, in the meantime, Covid-19 infection rates continue to soar all over the world. Meanwhile, the threat of a no-deal Brexit in just over a month also looms large. There’s still plenty of reason why UK share prices could reverse sharply again.

Top UK shares in my ISA

For these reasons I haven’t gone on a buying spree of UK shares. Investing solely on the basis of what you think stock markets will do in the short term is often a recipe for disaster.

That’s not to say I’ve stopped buying UK shares altogether. Provided that one buys quality stocks as part of a long-term investing strategy there’s every chance of generating brilliant shareholder returns. Over this sort of timescale the adverse impact of share market volatility tends to be greatly diminished.

I buy UK shares in my Stocks and Shares ISA with a view to holding them for a minimum of 10 years. Some shares like Unilever, Diageo and Coca-Cola HBC are stocks I don’t expect to sell at any point, given the eternal popularity of their products. Others I’ve bought like brick manufacturer Ibstock because I expect them to make big profits over the next decade. This particular UK share should see the bottom line surge as Britain steps up homebuilding activity during the 2020s.

There are lots of other top stocks like these I’m thinking of buying for my ISA today. And investors can boost their chances of finding the best UK shares out there with the help of experts like The Motley Fool.

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Royston Wild owns shares of Coca-Cola HBC, Diageo, Ibstock, and Unilever. The Motley Fool UK has recommended Diageo, Ibstock, and Unilever. 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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