Did the 2020 stock market crash provide the investment opportunity of a lifetime? We at The Motley Fool believe it’s created a great chance to get rich by buying quality UK shares for little cost. The lack of significant dip-buying following the collapse in March suggests that stock investors aren’t as convinced though.
There’s a galaxy of great UK shares that are likely to soar in value from their current lows. The global economy will recover from the Covid-19 crisis, corporate profits will rise again, and market confidence will bounce back from its current lows. This means that those brave enough to continue buying UK shares today can make a fortune in the coming years. It’s a strategy that helped the number of Stocks and Shares ISA millionaires to balloon following the 2008/09 stock market crash.
The coronavirus outbreak has significantly worsened the earnings outlook for a great many British companies. The pandemic means that plenty of UK shares face the prospect of going out of business entirely. However, investors shouldn’t pull up the drawbridge entirely. History shows us that share pickers can still make fortunes whichever point in the economic cycle we find ourselves at.
2 stocks I’d buy after the stock market crash
Let me talk you through two UK shares I’m thinking of buying for my Stocks and Shares ISA, and why.
- The relentless rise in defence spending provides UK share investors with a solid investment opportunity. Despite the uncertain outlook for the global economy manufacturers like QinetiQ Group can still expect to enjoy strong earnings growth. This week the FTSE 250 firm said that order intake between April and September had been “particularly strong.” It predicted that order intake and revenues during the full fiscal year to March 2021 would be up from the previous period too. Today QinetiQ can be bought on a forward price-to-earnings (P/E) ratio of 14 times. And this makes it a steal in my book.
- Homeserve Group’s a brilliant buy for even the most risk-averse investors, I feel. This FTSE 100 colossus has a long history of unbroken annual earnings growth behind it. And City analysts don’t expect this record to hit the buffers any time soon, despite the poor economic outlook. Why? Well the essential nature of this UK share’s services, from emergency boiler repair to detecting water leaks, means that demand for its policies remains robust in the good times and bad. This is not the only reason I’d buy Homeserve for my ISA, though. I also like the steps it is taking to grow its position in the gigantic UK market.
Make a million with UK shares
This is just a taster of the top-quality UK shares available for investors to buy today. And The Motley Fool’s epic trove of special reports can help you find even more. So do some research and get investing today, I say. 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 Homeserve. 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.