If I had £1,000, what would be the best shares to buy now for my ISA?

Jonathan Smith surveys the lie of the land and picks some stocks that he feels are the best shares to buy now, ahead of events on the horizon.

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If I had £1,000 to put to work, I’d have a multitude of options. One of them is to top up my ISA by investing in some of the best shares to buy right now. In theory, I’d be able to benefit from a rising share price, meaning a net profit when I come to sell the shares. Given that the ISA allows all of us to pay no capital gains tax on disposal, we’re able to enjoy the full benefit of the profit. Each of us has an ISA allowance of £20,000 per year, so chances are you still have some room left. I know I do. So what are some of the best shares to buy now in my opinion?

Think (invest) smart

Some of the biggest moving share prices from this year have been impacted by external factors. Such factors have the ability to really change a firm, for better or worse. For example, cruise operator Carnival Cruises has lost almost three-quarters of its value due to the share price fall this year. The pandemic has ground business to a halt. Although investors couldn’t have predicted the pandemic, they could have cut positions for a much smaller loss by thinking ahead in March.

So for ideas on the best shares to buy now, what events are close by that could influence things? There’s plenty. Apart from the risk of another lockdown here in the UK, there are the US elections and a looming Brexit deadline. We also have the busy end-of-year Christmas trading period.

Some of the best shares I’m looking at

I recently wrote a piece on Boohoo Group, about how my call was correct on buying the stock earlier this year. Even though I’ve recently had to sell my shares to fund something else, I’m looking to buy back in as soon as I can. The business is doing well, shown by the recent half-year pre-tax profit coming in at £68.1m, up £22.9m from the same period last year. With the busy retail season approaching, I think online demand will remain strong, something which could quickly get priced in to the share price, despite its recent drops.

On the risk of a stricter lockdown (either localised or national) over the winter, I think Ocado Group is another good share to buy now. The online supermarket benefitted from the extensive distribution network it has when the UK went into lockdown this spring. The share price has almost doubled this year, with some saying it’s looking overvalued. From my angle, the firm is still in the high growth stage, something that will only be accelerated from any further lockdown demand. This growth is shown by the 50% jump in third-quarter sales after starting to deliver Marks & Spencer food.

Timing is important

Trying to time the market perfectly is impossible. But you and I can ensure we’re timed well enough to benefit from potential future events. So investing £1,000 in some of the best shares mentioned above would make sense before the relevant events happen, instead of potentially missing the boat. 

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.

jonathansmith1 has no position in any of the shares mentioned. The Motley Fool UK has recommended boohoo group and Carnival. 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.

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