The Motley Fool

Scared to buy UK shares after the stock market crash? 2 top stocks I think could make you rich

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Man making notes on graphs and charts
Image source: Getty Images.

Market appetite for UK shares remains stuck in the doldrums. The FTSE 100 and FTSE 250 actually receded over the summer as fear over Covid-19 and the global economy grew. As I type there are no obvious catalysts on the horizon that could blast UK share prices away from their 2020 lows either.

Okay, stock pickers need to be extremely careful when building shares for their portfolios. Corporate profits could remain under severe pressure in the short to medium term at least. There are plenty of UK shares whose weak balance sheets could cause them to go out of business entirely.

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...

However, I don’t believe that you and I shouldn’t keep investing in something like a Stocks and Shares ISA. There are still hundreds of UK shares that should provide exceptional shareholder returns in the long run. And there are plenty of ways that investors can protect themselves from tricky near-term economic conditions.

Graph Falling Down in Front Of United Kingdom Flag

2 top stocks for ISA investors

You can buy companies with strong competitive advantages (or “economic moats“, as Warren Buffett likes to call them). Investors can also buy UK shares with defensive operations like food producers, utilities providers, or general insurance companies. Profits for these types of companies tend to be stable whatever macroeconomic hiccups emerge. Furthermore, you can buy firms with exposure to fast-growing consumer trends that remain unaffected by Covid-19 and its severe social and economic consequences.

Here are two top shares I’d be happy to buy for my own Stocks and Shares ISA. I think they have all the tools to make investors a fortune over the coming decade:

  • Naked Wines is a top buy for a few of reasons. First, history shows us that alcohol sales actually rise, not fall, during tough economic times. This spells good news for this UK share’s bottom line over the next couple of years. Secondly, this online-only retailer is well placed to ride the exploding popularity of e-commerce in the years ahead. Finally, I’m excited by the terrific progress Naked Wines is making in the US (revenues there rocketed 20% in the last financial year).
  • I believe that US streaming giant Netflix is another wise buy for the near term and beyond. Weak consumer spending around the world will encourage citizens to stay in and watch a movie instead of going out. So will the steady rise in Covid-19 infection rates that has emptied cinemas and prompted people to stream at home instead. And in the long term I’m excited by the amount Netflix is spending to produce local-language content in emerging markets. As Hargreaves Lansdown notes: “these geographies have a lot more growth potential than the mature US market”.

Making a fortune with UK shares

Netflix and Naked Wines are brilliant buys for British investors. But these are just a couple of top stocks packed with investment potential despite the poor economic outlook. The Motley Fool’s epic library of special reports can also help you dig out loads of UK shares that are too good to miss today. So do some research and get investing today.

5 Stocks For Trying To Build Wealth After 50

Markets around the world are reeling from the coronavirus pandemic…

And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.

But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times.

Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down…

You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm.

That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away.

Click here to claim your free copy of this special investing report now!

Royston Wild has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Netflix. 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

Renowned stock-picker Mark Rogers and his 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 click below to discover how you can take advantage of this.