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I’d buy these 2 FTSE 100 shares in a Stocks and Shares ISA today to retire early

Buying FTSE 100 resources companies could seem like a risky move at the present time. After all, the world economy faces an uncertain period that could lead to challenging operating conditions for a range of companies.

However, in many cases, those risks may have been priced in by investors. This could mean there are margins of safety on offer, and that the risk/reward opportunities are attractive.

With that in mind, here are two FTSE 100 resources companies that could be worth buying in a Stocks and Shares ISA. In the long run, they could improve your chances of retiring early.


The gold price has enjoyed a strong performance in 2019, with it increasing by around 15% since the start of the year. This has helped to improve the financial performance of gold miners such as Polymetal (LSE: POLY). Its bottom line is expected to rise by 13% in the current year, followed by further growth of 31% next year.

Despite its improving outlook, the stock trades on a relatively low valuation. For example, it has a price-to-earnings growth (PEG) ratio of just 0.4. This could indicate that there is further capital growth ahead for the business as it capitalises on rising demand for gold among investors.

With US interest rates having fallen in recent months, the popularity of gold could stay at high levels over the medium term. Risks such as a global trade war may push investors towards perceived lower-risk assets, and create more favourable operating conditions for Polymetal and its sector peers.

Therefore, on a risk/reward basis the stock appears to be attractive. It could prove to be undervalued given the uncertain outlook for the world economy.


Those uncertain prospects for the world economy may mean that oil and gas companies such as BP (LSE: BP) experience a challenging short-term outlook. Slower economic growth has historically been associated with lower demand for oil. This may lead to a lower oil price that ultimately causes financial challenges for oil and gas companies.

BP’s recent quarterly update showed that it was able to deliver strong cash flow and profitability despite experiencing a lower price environment. It is investing in downstream markets in Asia that could provide long-term growth, while divestments are set to change the mix of its portfolio to potentially create a more favourable risk/reward opportunity.

The company currently trades on a price-to-earnings (P/E) ratio of just 12.4. This may provide a margin of safety for investors that could translate into capital growth in the long run. Its dividend yield of 6.7% may not be the most reliable, since its financial performance can be relatively volatile. But its dividend cover of 1.2 suggests that it has room to increase shareholder payouts should the business be able to capitalise on growth opportunities across its industry.

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Peter Stephens owns shares of BP. 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.