Our view on the 2020 stock market crash couldn’t be clearer. Those who’ve stopped buying UK shares during the past six months are wasting a golden opportunity to get rich. At The Motley Fool we see opportunity in buying after market crashes. You and I can build a five-star stocks portfolio at little cost today, and then watch it balloon in value as economic conditions improve and share prices rise again.
Studies show that long-term investors have nothing to fear from stock market crashes. For those who buy UK shares to hold for 10 years or more, the average return sits at 8-10% a year. Market crashes come and go, but they’re clearly no barrier to making a stack of cash.
3 top buys after the stock market crash
I’ve continued to buy UK shares in my own Stocks and Shares ISA in 2020. And here are three more top stocks I’m thinking of adding to my shares portfolio:
- Iomart Group’s a share poised to enjoy terrific earnings growth despite the uncertain economic outlook. The rise of home working means demand for its cloud computing services should take off. This UK share can also take confidence from the fact almost all its revenues are recurring in nature, allowing it to absorb a severe Covid-19 shock. A forward price-to-earnings (P/E) ratio of 22 times for Iomart is toppy on paper. But, in reality, it’s an undemanding reading given the rate at which sales are poised to take off.
- Nervous investors might want to pay Tharisa close attention today. In the long-term, this platinum and palladium producer can expect demand for its product to rocket from the auto sector. This is thanks to increased metal loadings in catalytic converters to clean up exhaust emissions. And, in the meantime, it can ride rising investment demand for the safe-haven metals as the global economy shakes. Tharisa trades on an undemanding forward P/E ratio of 15 times and boasts a near-4% dividend yield too.
- I reckon UK share investors should expand their horizons and also consider buying top US stock Amazon. The online retail goliath’s share price has almost doubled as Covid-19 lockdowns turbocharged e-commerce growth across the globe. And it’s investing heavily to capitalise fully on the internet shopping boom. Just this week, Amazon said it was hiring another 7,000 employees across its UK operations alone. No wonder it commands a mountainous forward P/E ratio of 116 times. This is a superstar stock worthy of a place in anyone’s shares portfolio.
Make a million with UK shares
Amazon et al are just a few of the hot shares I’m thinking of buying following the stock market crash. And with the help of The Motley Fool’s epic library of special reports and expert articles you can discover even more UK shares to get rich with. They could even help you make a million.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Royston Wild has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Amazon. The Motley Fool UK has recommended Iomart Group and recommends the following options: short January 2022 $1940 calls on Amazon and long January 2022 $1920 calls on Amazon. 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.