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Stock market crash: I’d drip feed £500 a month into these cheap UK shares to make a million

Could the 2020 stock market crash be the investment opportunity of a lifetime? We here at The Motley Fool believe crashes shouldn’t be feared. For long-term investors with a sound investment strategy they provide a brilliant opportunity to get rich. And possibly even make a million.

Those that buy equities in the immediate aftermath of a stock market crash often tend to make the biggest money. They use corrections to buy quality companies at dirt-cheap prices. And then to watch them balloon in value as the economic cycle picks up. In theory, it’s a simple way for share investors like you and I to turbocharge our overall returns. But it’s mightily effective.

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A stock price graph showing declines, possibly in FTSE 100

Buying shares after the stock market crash

It’s been proven that long-term investors can make an average annual return of 8-10%. Based on those figures, someone who drip feeds £500 a month into something like a Stocks and Shares ISA could make a whopping £1.03m over the space of 30 years. Some ISA millionaires have shown it’s possible to make even more money, and over a shorter space of time too.

Let me talk you through a few shares I think have ‘millionaire-maker’ potential printed all over them following the stock market crash. I’ll start with Clipper Logistics, whose warehouses and distribution facilities provide a key role in the e-commerce segment.

This business trades on a sub-1 forward price-to-earnings growth (PEG) ratio of 0.5. It’s a reading I think fails to reflect the exceptional rate at which the online shopping phenomenon is growing and, consequently, Clipper’s bright profits outlook. ACI Worldwide says British e-commerce sales rocketed by a fifth year-on-year in June.

I’d happily buy Stock Spirits Group at current prices too. This business changes hands on a forward PEG ratio of 0.4 as earnings (just like those at Clipper) are expected to balloon more than 30% this fiscal year. This is no flash in the pan though. It can expect sales of its much-loved spirits labels to keep ripping higher as wealth levels in its core Central and Eastern European markets grow.

A too-cheap-to-miss FTSE 100 stock

I also reckon AstraZeneca is too cheap to miss after the stock market crash. This FTSE 100 share trades on a PEG ratio inside the bargain-basement territory of 1 for both 2020 and 2021. It’s a reading that fails to reflect the pharma giant’s top-quality pipeline that helped new medicine sales to soar 42% in the first half of 2020. This cheap price also doesn’t illustrate the profits boost AstraZeneca will receive in the years ahead as healthcare spending in emerging markets rockets.

Buying these cheap stocks at today’s prices gives investors a chance to supercharge their eventual returns. And there are plenty more top-quality UK shares trading too cheaply to choose from. The stock market crash provides many opportunities for investors to build a five-star shares portfolio at little cost.

It could even help you make a million or more!

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 recommended Clipper Logistics. 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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