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Forget gold and Bitcoin. I’d buy these 2 bargain FTSE 100 shares in an ISA today

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The FTSE 100’s crash may tempt some investors to buy assets such as gold and Bitcoin. After all, they have delivered strong returns over the past few months. For example, gold has traded close to a record high and Bitcoin has doubled since reaching its March lows.

However, the FTSE 100 has a strong track record of recovering from its downturns to post new record highs. Therefore, buying companies with margins of safety included in their share prices could lead to high returns in the long run.

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With that in mind, here are two large-cap shares that could be worth buying in an ISA today. They could deliver strong capital growth over the coming years.

Auto Trader

FTSE 100 digital automotive market place Auto Trader (LSE: AUTO) has experienced significant disruption from coronavirus. Vehicle retailers across the UK have been closed during the lockdown period, which is set to have a negative impact on the company’s financial performance in the short run.

Auto Trader has sought to aid its customers through reducing its charges to zero while vehicle retailers have been required to close. It has also offered a 25% discount to its customers for June, when many of them are expected to reopen.

Looking ahead, the company faces an uncertain period in the short run. Weak consumer demand and social distancing requirements may lower sales for new and used vehicles. However, its dominant market position could allow it to benefit from a gradual return to positive economic growth in the coming years.

Therefore, after its 8% share price decline since the start of the year, it may offer good value for money and recovery prospects over the long-term.

FTSE 100 telecoms company BT

Another FTSE 100 share that is still in negative territory since the start of the year is BT (LSE: BT.A). Its shares are down by 36% in 2020 as investors have priced-in potential risks facing the business.

The company is not providing guidance for the 2021 financial year. It has also cancelled dividends for the 2020 and 2021 financial years, which is likely to weigh on investor sentiment over the near term.

In the long run, BT’s strategy could catalyse its financial performance and share price. For example, it is investing in its network infrastructure across the UK as it seeks to strengthen its competitive position in 4G and 5G. It is also seeking to become more efficient through a simplification process, while its premium ‘Halo’ products now account for around 30% of its consumer broadband customer base.

Although the FTSE 100 stock’s near-term prospects are likely to remain uncertain over the coming months, it appears to have numerous catalysts that could lead to a turnaround. Therefore, now could be an opportune moment to buy it while it appears to offer a wide margin of safety. 

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Peter Stephens has no position in any of the shares mentioned. The Motley Fool UK has recommended Auto Trader. 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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