Making a million from UK shares isn’t the realm of fantasy. Building a robust and well-balanced portfolio packed with brilliant UK shares has never been easier.
There’s plenty of brilliant products out there like Stocks and Shares ISAs to help you do that. There’s a wealth of great information out there to help you become a millionaire, too. And the 2020 stock market crash provides a great opportunity to create a winning stocks portfolio at little cost.
Make a million with the housebuilders
Vistry Group is one UK share I’d strongly consider buying if the stock market crashes again. Its shares are already looking dirt cheap; the blue chip trades on a forward price-to-earnings ratio of below 10 times. Another price plunge would be too good to miss given the bright outlook for homes prices over the long term.
Estate agency Savills reckons that home prices will still rise around 15% from now until 2024 despite the near-term pressure created by Covid-19. And Vistry, as one of Britain’s biggest housebuilders, is well placed to ride this trend.
I’d buy shares in FTSE 100 builders The Berkeley Group and Persimmon too owing to their inflation-mashing dividend yields. These sit north of 4% for 2020 at current prices. There’s still plenty of reason to believe that the housebuilders have millionaire-maker potential in the years ahead as the UK’s undersupply of new homes rumbles on.
More millionaire makers?
Speaking of homes, I reckon buying shares in some of Britain’s student accommodation providers is a great way to try to make a million. We’re talking about the likes of Unite Group, GCP Student Living, and Empiric Student Property here.
These shares have sold off as investors fear falling university enrolment numbers in the near term. An economic shock, allied with concerns potential students might have over contracting Covid-19, are cited as reasons to expect applications to plummet. But I’m not so downbeat. According to university applications body UCAS, a record 40.5% British 18-year-olds had applied for a higher education course for the 2020–21 academic year as of June.
Social distancing rules pose a problem for universities hoping to conduct business as usual. But I’m encouraged by these establishments’ efforts to meet surging demand for their services with a combination of online and face-to-face learning. Student enrolments remain on a long-term uptrend and I’m confident that they will remain so in the years ahead, paving the way for more excellent growth in annual earnings at Unite Group et al.
Expensive but exceptional
Now these firms don’t come cheap when viewed in terms of conventional metrics like P/E ratios. Indeed, Empiric Student Properties trades on the lowest earnings multiples of those three operators I mention. Yet the small cap still carries a P/E ratio of 25 times for 2020.
Expensive, sure, but a reflection of their excellent long-term profits outlooks. As I say, university enrolment numbers from British citizens continues to boom. And the UK remains the second-biggest destination for overseas students behind the US. These are firms that are packed with millionaire-making potential and I’d use a second market crash as an opportunity to buy them at a cheap price.
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.