The 2020 stock market crash has presented a terrific opportunity for UK share investors to get rich. I’m not bothered if the market sinks again. I believe there are too many quality shares out there that are too good to miss out on at current prices.
So the FTSE 100 posted its worst one-day performance for three months on Monday. So what? It’s nothing that I, as a long-term investor in UK shares, am worried by. Volatility on share markets is nothing new. And over the course of many years, stock market crashes don’t stop patient investors from making BIG returns.
It’s clear that the global economy faces massive challenges. Following the Covid-19 crisis UK share pickers might have to refine their investment strategies and review their shopping lists. But it doesn’t mean they should stop buying UK shares altogether.
3 top buys after the crash
Indeed, in the event of another stock market crash I’ll be breaking out the chequebook again. Here are some UK shares I’ll be thinking of adding to my own Stocks and Shares ISA in the event of a fresh correction:
- Stock Spirits Group doesn’t have much to fear from the global economic downturn. In fact, history shows us that alcohol sales rise during recessions. But this UK share is no flash in the pan. I’m confident the beverages maker’s focus on the fast-growing emerging markets of Poland and Czechia should deliver monster long-term profits growth too. Today, Stock Spirits trades on a forward price-to-earnings (P/E) ratio of 12 times. It carries a 4.2% dividend yield as well. This makes it worthy of serious attention.
- Pensions consultancy XPS Pensions Group also has a very bright future. Britain’s population is rapidly ageing and the Office of National Statistics reckons there’ll be more than 20m people aged 65 and over by 2068. It looks like demand for XPS’s services is set to boom in the coming decades as a result. And I don’t think a P/E ratio of 12 times for 2020 reflects this. A 5.7% dividend yield adds extra incentive to buy this UK share.
- Primary Health Properties doesn’t look as appealing in terms of value on paper. It carries a forward P/E ratio of 26 times. Still, I reckon it’s a wise buy for long-term UK share investors. This developer of healthcare premises stands to gain from Britain’s ageing population too. It should also benefit from the huge investment going into upgrading primary healthcare facilities as government tries to divert patients away from hospitals. One final thing to consider: a big 4% dividend yield helps take the sting out of that P/E multiple.
Get rich with UK shares!
Studies show that stock market investors, over the space of a decade or more, enjoy an average return of at least 8% a year. So why should you and I stop buying UK shares on the back of recent volatility? There are plenty of top stocks like those above to choose from today. And you can find even more by browsing The Motley Fool’s epic library of exclusive reports.
Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Primary Health Properties. 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.