The Motley Fool

Forget Bitcoin, gold and buy-to-let! I’d invest money in these 2 UK shares to retire rich

Image source: Getty Images.

Investing money in UK shares could lead to high returns over the long run. A number of high-quality stocks in the FTSE 100 and FTSE 250 appear to have scope to deliver capital gains.

Therefore while Bitcoin, gold and buy-to-let property may be popular investment destinations at the present time, a portfolio of British stocks could offer better value for money.

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...

With that in mind, here are two stocks that could be worth buying today. They may improve your financial prospects and help to bring your retirement date a step closer.

Outperforming other UK shares

While many UK shares have declined in value this year as a result of the stock market crash, Reckitt Benckiser (LSE: RB) has gained over 20% in 2020. The consumer goods company has reported high demand for its products, with its half-year results showing a rise in operating profit of over 15%.

Looking ahead, the company appears to have sound growth prospects. It has invested in online sales opportunities so that it is in a good position to benefit from the likely shift in consumer demand towards e-commerce.

While Reckitt Benckiser now trades on a price-to-earnings (P/E) ratio of around 23, its earnings growth potential could provide a further boost to its share price. With a diverse range of products and exposure to a variety of regions, it appears to offer an attractive risk/reward investing opportunity.

An improving outlook after a challenging period

The Associated British Foods (LSE: ABF) share price has followed other UK shares downwards this year. The owner of Primark has recorded a decline in its market valuation of 22% since the start of the year. It has been negatively impacted by store closures as part of lockdown measures.

However, the company recently reported that its sales performance has been strong since reopening. It has also experienced robust demand across many of its other segments, which has helped to support its overall performance.

ABF is forecast to post a rise in earnings of around 60% next year. It trades on a forward P/E ratio of around 16, which suggests that it offers a margin of safety relative to its past ratings. As such, now could be the right time to buy it within a diverse portfolio of UK shares while it continues to trade at an attractive price.

Buying Bitcoin, gold and buy-to-let

Of course, UK shares such as Reckitt Benckiser and ABF may experience an uncertain near-term future due to ongoing risks such as Brexit. However, their long-term growth prospects suggest that they offer a superior investment opportunity than gold and buy-to-let, which appear to lack value for money for new investors.

And with Bitcoin lacking fundamentals, investors seeking to retire early may be better off building a portfolio of British stocks while they seem to offer good value for money.

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!

Peter Stephens owns shares of Reckitt Benckiser. The Motley Fool UK has recommended Associated British Foods. 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.