The threat of a painful global economic downturn doesn’t terrify me. And neither should it worry long-term UK share investors who have bought quality stocks with robust balance sheets.
The lion’s share of successful share investors make their fortunes over a long number of years. Over an extended time horizon the impact of turbulent economic times like these on total shareholder returns is greatly reduced. It’s why long-term investors, even accounting for periods of extreme pressure on corporate profits like this, tend to enjoy a chunky average annual return of at least 8%.
Investor tension remains high and many nervous investors might not be convinced by my bullish take. No one likes seeing the value of their investment portfolio plummet, even if for a temporary period. But there are plenty of UK shares that should still deliver terrific shareholder returns in the next few years. And therefore I expect their share prices to rise despite the economic downturn.
3 great growth stocks
Let me talk you through three robust UK shares like these that I’m thinking of adding to my own Stocks and Shares ISA:
- Getting access to the animal healthcare market is a very good idea for growth investors. And a great way to play this theme is by buying into drugs developer Dechra Pharmaceuticals. Mordor Intelligence says that vaccines demand for pets and livestock animals is picking up all over the globe. And it’s one of the reasons why it expects the veterinary healthcare sector to grow by a meaty annualised rate of 6.5% through to 2025. No wonder City analysts reckon Dechra’s long-running record of yearly profits growth will keep rolling despite the global economic downturn.
- Exploding demand for vanadium redox batteries (or VRBs) could drive profits at Bushveld Minerals to the stars too. Growing demand for green energy means that solar panel and wind turbine usage is booming. This means the VRB market will grow at an annualised rate of 43.7% through to 2025 (according to 360 Research Reports). And Bushveld – a major producer of vanadium in South Africa – is in great shape to get seriously rich in the process.
- A murky economic outlook bodes extremely well for gold producer Centamin. Safe-haven demand for precious metals traditionally remain strong in challenging times like these. The stressed global economy means that central banks will keep frantically printing money, too, boosting sales of hard currencies like gold still further. But this is not the only reason I like this particular gold-digging UK share. I’m also impressed by estimate-beating production levels and cash costs at the gold play in recent times. No wonder City analysts reckon annual earnings will rocket 69% in 2020 and by just over 50% next year.
Getting rich with UK shares
So what am I waiting for? These UK shares are just a fraction of the many great British companies that could make me a fortune despite the global economic downturn. The 2020 stock market crash presents the chance to pick them up at rock-bottom prices, too.
Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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.