£10k to invest? I think these UK shares could help you retire rich

These UK shares are some of the best in their respective industries, which could help them produce large returns for investors.

| More on:

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.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

Many investors are avoiding UK shares at the moment. In some cases, this is understandable. The outlook for London-listed stocks is highly uncertain with the coronavirus crisis and Brexit weighing on investor sentiment. 

However, the best time to buy stocks is often when other investors are selling. What’s more, not all UK shares are created equal. Some companies, particularly in the technology sector, are world leaders in their respective fields. 

So, I think that buying a basket of these shares today could potentially help you retire rich. 

UK shares to buy

Credit rating business Experian (LSE: EXPN) is one of the world’s largest data processing businesses. It’s been managing consumer credit information for decades. This gives it a strong competitive advantage over the rest of the industry because, in the world of data, the more you have, the better. 

It would be tough for a competitor to replicate Experian’s data set. It’s growing every single day. This is why I think the stock could help you retire rich. Experian is one of the few UK shares that has a truly global footprint and competitive advantage. 

These advantages have helped the group produce healthy returns for investors over the past decade. An investment of £10k in the stock 10 years’ ago would be worth £51k today. As the company continues to dominate the global financial data space, I think these returns can continue. 

Market leader

There was one clear blue-chip winner from this spring’s lockdown. That was Ocado (LSE: OCDO). While many other UK shares struggled in the first half of the year, this business prospered. 

Demand for the retailer’s services was so high that it had to stop taking new customers for a while. Many companies would kill to have this problem. 

Ocado’s critical competitive advantage is its technology. The group owns the tech behind its robotic warehouses, which it’s been licensing to other retailers. The pandemic has exposed one significant weakness in supermarkets’ business models — they need humans to prepare orders.

If a large percentage of the workforce is sick, then they may struggle to fill orders. Ocado’s solution removes this issue. Robots can’t get ill, and they can keep going when the rest of the world is shut down. 

Therefore, I think the demand for Ocado’s tech will only increase. As well as this growth, the company should also continue to see rising demand for its home delivery service. 

Over the past few years, the retailer has defied all expectations. I reckon it could continue to do so. Nothing is stopping its growth from here. The firm has the money, technology and investor support. Another shutdown could even benefit the retailer. 

As such, I think it may be worth adding Ocado to a basket of UK shares today. This tech leader’s growth could only just be getting started.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Rupert Hargreaves owns no share mentioned. The Motley Fool UK has recommended Experian. 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.

More on Investing Articles

Affectionate Asian senior mother and daughter using smartphone together at home, smiling joyfully
Investing Articles

How I’d invest my first £20k ISA to target £4,900 a year from dividend shares

Looking for dividend shares in a new Stocks and Shares ISA, and want diversification too? Here's how I'd go about…

Read more »

Passive income text with pin graph chart on business table
Investing Articles

Yields of up to 7%! I’d consider boosting my income with these FTSE dividend stocks

The London market has some decent-looking dividend stocks right now, and I’m tempted by these two for growing income streams.

Read more »

Young mixed-race couple sat on the beach looking out over the sea
Investing Articles

I’d put £20K in an ISA now to target a £1,900 monthly second income in future!

Christopher Ruane shares why he thinks a long-term approach to investing and careful selection of shares could help him build…

Read more »

Mature couple at the beach
Investing Articles

6 stocks that Fools have been buying!

Our Foolish freelancers are putting their money where their mouths are and buying these stocks in recent weeks.

Read more »

Black woman using loudspeaker to be heard
Investing Articles

I was right about the Barclays share price! Here’s what I think happens next

Jon Smith explains why he still feels the Barclays share price is undervalued and flags up why updates on its…

Read more »

Investing Articles

Where I’d start investing £8,000 in April 2024

Writer Ben McPoland highlights two areas of the stock market that he would target if he were to start investing…

Read more »

View of Tower Bridge in Autumn
Investing Articles

Ahead of the ISA deadline, here are 3 FTSE 100 stocks I’d consider

Jon Smith notes down some FTSE 100 stocks in sectors ranging from property to retail that he thinks could offer…

Read more »

Young female business analyst looking at a graph chart while working from home
Investing Articles

Why I think Rolls-Royce shares will pay a dividend in 2024

Stephen Wright thinks Rolls-Royce shares are about to pay a dividend again. But he isn’t convinced this is something investors…

Read more »