The Motley Fool

Best investments for 2021: 2 UK shares I’d buy right now

Image source: Getty Images

So far, 2020 has been a turbulent year for investors. The coronavirus crisis has had a significant impact on the global economy, and many UK shares are still trading below the level at which they began the year. 

However, growth is expected to return in 2021. And with that in mind, I think now could be an excellent time for long-term investors to snap up a basket of cheap blue-chip stocks. Here are two companies I’d consider buying today. 

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...

UK shares to buy right now 

The coronavirus crisis has had a significant impact on luxury retailer Burberry (LSE: BRBY). The group was forced to close the majority of its stores at the height of the pandemic, and sales slumped as a result. 

The company could also continue to struggle in the near term. In an economic downturn, sales of luxury goods and services tend to decline. Nevertheless, Burberry’s most significant advantage is its brand. The group’s worldwide brand recognition, coupled with its global footprint, suggests to me the business is one of the best UK shares to buy to profit from the global economic recovery. 

What’s more, Burberry’s strong balance sheet and robust profit margins should help the business weather the storm in the near term. As such, I think this stock could be worth buying as part of a diversified basket of cheap UK shares. It could rise in value significantly as the global economic recovery starts to gain traction.

InterContinental Hotels

The crisis has also severely impacted InterContinental Hotels (LSE: IHG). Lockdowns forced the company’s hotels around the world to close, and they’re only just starting to reopen. It could be some time before occupancy returns to pre-Covid levels. 

This suggests the company faces a lot of near-term uncertainty. Still, as one of the largest hotel companies in the world, I think InterContinental can make it through this uncertainty. It’s also well-positioned to profit from an economic recovery on the other side as global travel resumes.

A healthy balance sheet and global diversification only add to my belief that this business is one of the best UK shares to own for 2021. 

There has also been some speculation that InterContinental may merge with its European peer, Accor, as it tries to recover from the crisis.

Such a deal would catapult the enlarged company to the top of the hotel industry. It would be the largest operator of hotels in the world. This could be a huge positive for investors. By combining, the two groups would be able to lower costs through economies of scale and increase their appeal to potential franchisees. That may also mean more substantial returns for investors.

InterContinental has returned a considerable amount of cash to investors in the past with special dividends. I expect this trend to continue when sales return to 2019 levels, even if the company doesn’t merge with Accor. 

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...

It’s just ONE innovation from a little-known US company that has quietly spent years preparing for this exact moment…

But you need to get in before the crowd catches onto this ‘sleeping giant’.

Click here to learn more.

Rupert Hargreaves owns no share mentioned. The Motley Fool UK has recommended Burberry and InterContinental Hotels Group. 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.