We all dream of becoming stock market millionaires by buying UK shares. In reality, though, very few investors make it over the line. It doesn’t have to be that way.
Getting rich from UK shares isn’t a simple process. It’s become easier in recent years as the amount of material and guidance from experts like The Motley Fool has exploded. But it takes time and some trial-and-error, too, to come up with a robust investing strategy and build a five-star stocks portfolio. It also requires a lot of financial discipline to keep putting money aside to build that shares portfolio, of course.
There is a short cut to making big money from share investing, however. That’s by buying UK shares after a stock market crash. It’s not a secret as such. Hundreds of Brits made millions in Stocks and Shares ISAs in the 2010s by using this very trick. Yet the lack of serious dip buying after the recent market crash suggests it’s a strategy many investors aren’t willing to try.
2 top dip buys
The panic that accompanies stock market crashes means that high-quality stocks are always sold off along with the dogs. The 2020 crash is no different in this regard. Even UK shares in great financial shape to sail through the economic downturn have been chucked out. You and I can buy them at low cost today, watch them soar in value as corporate profits steadily improve and investor appetite improves, and then sell them at a fat profit.
The London Stock Exchange is loaded with top-quality UK shares like this. Let me fill you in on a couple on my own ISA watchlist:
- I’m thinking of using the 35% share price decline at AG Barr in 2020 as a dip-buying opportunity. Recent Covid-19 lockdowns smashed demand for its drinks across the hospitality and the ‘on the go’ segments. The long-term outlook for the Irn Bru manufacturer remains quite robust, though. Barr’s brand power is as beloved as ever, allowing it to raise prices whatever broader economic conditions are like. And it remains hugely cash generative, too, giving it the strength to ride out the current economic crisis and to continue investing in its products too.
- Hill & Smith’s 20% share price decline in 2020 has also attracted my attention. This UK share manufactures road barriers, signs, gantries, and other fixtures you see at the side of the road. In other words it builds products that are indispensable whatever broader economic conditions are like. Indeed, with infrastructure spending on the march in both its British and US markets, the long-term profits outlook here remains quite robust as well.
Getting rich with UK shares
These are just a couple of the too-good-to-miss UK shares available to buy today. Browsing The Motley Fool’s huge catalogue of exclusive reports can help you find even more. So do some research and go dip buying today. You could get seriously rich and possibly even make a million.
Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended AG Barr. 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.