Forget Brexit! I’d double my money by investing in these FTSE 100 stocks 

I wouldn’t fret missing out on buying these stocks before they ran up, because there are others around. 

| 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.

FTSE 100 real estate provider Barratt Developments (LSE: BDEV) saw a 14% jump in share price the day the Tories came into power with a majority last month. This was no coincidence, of course. Real estate is a cyclical sector, meaning it is sensitive to macroeconomic conditions. Prolonged uncertainty was doing the sector no good, but the election results finally broke the Brexit-related limbo.  

Sharp real estate run-up 

For investors in BDEV, there couldn’t be a better time. Its share price breached the £7 level on the day, consistently stayed above it and more recently breached £8 (before sliding back a bit) as well. It was a good company to invest in earlier, but with the path to Brexit now clear, it seems that all doubts have cleared from investors’ minds. The story’s similar for other FTSE 100 real estate developers like Berkeley Group Holdings, Taylor Wimpey, and Persimmon, whose share prices haven’t looked back since mid-December either.  

The downside 

With a price to earnings (P/E) ratio of 11 times, BDEV still looks affordable, making it a worthwhile investment even now.

The only catch is this. I’m just not sure if its price can increase at speed. Consider this – from the price spike on 13 December up to the latest close, its share price has risen 5.8%. This isn’t a bad increase in five weeks, but it doesn’t compare to the expectations that were set up by the sharp increase seen the day the results were announced.  

Besides this, I’d really like to see improvement in real estate numbers before investing in this type of company now. The government’s latest numbers on house prices are encouraging. But given the weakness seen over the past few months, I’d wait for more confirmation of the latest trend.  

Buy when the chips are down 

It’s no reason for despair, though. I still think there are still plenty of FTSE 100 stocks that can double my money in a reasonably limited time frame. One of these is the consumer goods giant Unilever, whose chips have been down for over a month. It sounded somewhat diffident in its latest update, but I’m not exactly worried when I consider the details. It’s a quality stock, whose price is down at the moment, but it has doubled investor capital in half a decade. It’s a fine buy.     

Reliable growth 

Clearly, though, there are investors who don’t think quite the same way. That’s the reason the ULVR share price is still weak. If you are also thinking like them, then consider another company. The FTSE 100 analytics provider RELX has  more than doubled investor money in the last five years. It part of a growing industry, is financially healthy and there’s no reason to suggest it won’t continue doing well in the future. If ULVR is a fine buy, RELX is even better.

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.

Manika Premsingh has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Unilever. The Motley Fool UK has recommended RELX. 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 Investing Articles

Investing Articles

Could the JD Sports Fashion share price double in the next five years?

The JD Sports Fashion share price has nearly halved in the past five years. Our writer thinks a proven business…

Read more »

Bus waiting in front of the London Stock Exchange on a sunny day.
Investing Articles

If interest rate cuts are coming, I think these UK growth stocks could soar!

Falling interest could be great news for UK growth stocks, especially those that have been under the cosh recently. Paul…

Read more »

Investing Articles

Are these the best stocks to buy on the FTSE right now?

With the UK stock market on the way to hitting new highs, this Fool is considering which are the best…

Read more »

Petrochemical engineer working at night with digital tablet inside oil and gas refinery plant
Investing Articles

Can the Centrica dividend keep on growing?

Christopher Ruane considers some positive factors that might see continued growth in the Centrica dividend -- as well as some…

Read more »

Smiling family of four enjoying breakfast at sunrise while camping
Investing Articles

How I’d turn my £12,000 of savings into passive income of £1,275 a month

This Fool is considering a strategy that he believes can help him achieve a stable passive income stream with a…

Read more »

Person holding magnifying glass over important document, reading the small print
Investing Articles

2 top FTSE 250 investment trusts trading at attractive discounts!

This pair of discounted FTSE 250 trusts appear to be on sale right now. Here's why I'd scoop up their…

Read more »

Smiling young man sitting in cafe and checking messages, with his laptop in front of him.
Investing Articles

3 things that could push the Lloyds share price to 60p and beyond

The Lloyds share price has broken through 50p. Next step 60p? And then what? Here are some thoughts on what…

Read more »

Young female business analyst looking at a graph chart while working from home
Investing Articles

£1,000 in Rolls-Royce shares a year ago would be worth this much now

Rolls-Royce shares have posted one of the best stock market gains of the past 12 months. But what might the…

Read more »