The Motley Fool

Get rich, retire early! A premium UK share I’d buy for my Stocks & Shares ISA and hold forever

Image source: Getty Images.

There’s a variety of ways that you can value a share. One of the most common is to consider its current price in relation to its near-term earnings potential. This can be calculated by looking at its price-to-earnings (P/E) ratio or its price-to-earnings growth (or PEG) reading. They are handy ways to try to find value but it’s not a foolproof way to help you get rich and retire early.


5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!

According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…

And if you click here we’ll show you something that could be key to unlocking 5G’s full potential...

Indeed, some shares are cheap for good cause. BT, for example, trades on a forward P/E ratio of below 10 times because of its battered balance sheet and the colossal threat of rising competition at its consumer division.  

Ultra-cyclical share OneSavings Bank also trades under this rock-bottom level because of the threat of a prolonged UK economic downturn. And the possibility of sinking demand for big-ticket items leaves Dixons Carphone trading on a multiple under the bargain benchmark of 10 times, too. An elevated level of risk is often the price investors have to pay for a low multiple. And this can come at a high price for investors and destroy their attempts to get rich.

Moving on up

It can pay to forget about low valuations and to pay extra for shares of supreme quality. In the long run, the cream tends to rise to the top – the impact of an elevated near-term P/E ratio is ironed out. Don’t let a high premium deter you from taking the plunge. Many shares are highly rated by the market for a good reason.

Take Games Workshop Group (LSE: GAW) as an example. The business – which produces and sells miniature war games for fantasy lovers – was one of the stars of the second quarter. Its share price rocketed 85% over the period despite its high P/E ratio. These more recent gains leave it trading on a high forward earnings multiple of around 45 times. Still, I’d happily buy it for my own ISA as it has all the tools to help you get rich and retire early.

Get rich with Games Workshop

Economic downturns can devastate profits for many retailers. But it’s not a problem that Games Workshop is likely to suffer from following the coronavirus crisis. Sellers of essential goods like supermarkets are widely considered ‘recession proof’ but they are not alone. Niche products retailers like this FTSE 250 share can also thrive in good times and bad.

Games Workshop’s trading update of mid June underlined this point perfectly. It said that its sales performance since re-opening its stores following the Covid-19 breakout “has been better than expected” and raises hopes that trading will remain robust despite the upcoming global downturn.

Games Workshop has a number of strings to its bow. It has a so-called ‘economic moat’ against its competitors insomuch that its fantasy products have been the gold standard for decades and subsequently command a very loyal following. The business is bringing its products to a steadily-growing worldwide audience and now sells into around 70 countries. And it is taking steps like launching a Warhammer online store in China to ride the e-commerce boom, too. If you’re looking for hot growth shares to help you get rich and retire early you need to give Games Workshop serious attention.

A Top Share with Enormous Growth Potential

Savvy investors like you won’t want to miss out on this timely opportunity…

Here’s your chance to discover exactly what has got our Motley Fool UK analyst all fired up about this ‘pure-play’ online business (yes, despite the pandemic!).

Not only does this company enjoy a dominant market-leading position…

But its capital-light, highly scalable business model has previously helped it deliver consistently high sales, astounding near-70% margins, and rising shareholder returns … in fact, in 2019 it returned a whopping £150m+ to shareholders in dividends and buybacks!

And here’s the really exciting part…

While COVID-19 may have thrown the company a curveball, management have acted swiftly to ensure this business is as well placed as it can be to ride out the current period of uncertainty… in fact, our analyst believes it should come roaring back to life, just as soon as normal economic activity resumes.

That’s why we think now could be the perfect time for you to start building your own stake in this exceptional business – especially given the shares look to be trading on a fairly undemanding valuation for the year to March 2021.

Click here to claim your copy of this special report now — and we’ll tell you the name of this Top Growth Share… free of charge!

Royston Wild has no position in any of the shares mentioned. 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.

Our 6 'Best Buys Now' Shares

The renowned analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.

So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we're offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our 'no quibbles' 30-day subscription fee refund guarantee.

Simply enter your email address below to discover how you can take advantage of this.

I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement.