The Motley Fool

Forget Bitcoin! I’d hold shares like this to get rich, and I’d buy right now

Image source: Getty Images.

Since the bottom of the market crash in the spring, the value of Bitcoin has been shooting up.  But I don’t think the move is sustainable over the long term. And there’s no dividend income if I hold Bitcoin. On top of that, the higher the price of Bitcoin goes, the more I believe the risk of a reversal to the downside increases.

So, I’m not making Bitcoin part of my long-term portfolio of investments. And I don’t believe the cryptocurrency can contribute to my quest to get rich and retire early. I’d sum up Bitcoin up in one word: risky.

5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!

According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…

And if you click here we’ll show you something that could be key to unlocking 5G’s full potential...

I reckon this is a share to buy now

But there’s a huge opportunity for me in London-listed small-cap shares such as UP Global Sourcing (LSE: UPGS). For starters, I like the modest valuation with the earnings multiple near 12. And with the share price near 94.5p, the dividend yield is around 4%. On top of that, the balance sheet looks strong too.

Meanwhile, today’s full-year results report reveals to us the strength of the company’s performance with cash. Indeed, the firm has just repaid the money it received from the government under the Coronavirus Retention Scheme. It’s also paid all its deferred VAT and PAYE payments. The company reckons the repayments were possible because profitability and cash generation were “stronger than expected” during the crisis.

As well as demonstrating the strength of the company’s finances, I reckon the move to repay money to the government also reveals the integrity of the management team at UP Global Sourcing. Both factors encourage me to make a long-term investment in the company’s shares.

The firm makes its living by owning, managing, designing and developing well-known brands focused on the home. It sells to more than 300 retailers in 37 countries and divides its products into the categories of Audio, Heating and Cooling, Housewares, Laundry, Luggage, and Small Domestic Appliances. The brands include names such as Beldray, Intempo,  Constellation, and Progress. There are also licence agreements in place for the Salter and Russell Hobbs brands.

Targeting sustainable growth

The growth strategy involves continuous development of the portfolio of brands for “mass-market, value-led, consumer goods for the home.” And the company targets the sales channels of discounting retailers, supermarkets, online platforms and international retailers. The directors reckon that the “tried and tested” approach led to a “resilient” performance for the full year to 31 July 2020, despite the challenges of the pandemic.

Although total revenue decreased by just over 6% in the period, the company adapted well to the changing market dynamics. Indeed, online revenue rose by just over 47% to become 14.5% of the total. And supermarket revenue increased by almost 40% to become more than 24% of the total. Meanwhile, underlying earnings per share slipped by just 2.5%, which I think is a modest decline given the tough year’s trading.

Looking ahead, the directors are “confident” the strategy will deliver sustainable growth in the coming years. I’d buy some of the shares now and hold for the long term as part of a diversified portfolio of promising small-cap shares.

The high-calibre small-cap stock flying under the City’s radar

Adventurous investors like you won’t want to miss out on what could be a truly astonishing opportunity…

You see, over the past three years, this AIM-listed company has been quietly powering ahead… rewarding its shareholders with generous share price growth thanks to a carefully orchestrated ‘buy and build’ strategy.

And with a first-class management team at the helm, a proven, well-executed business model, plus market-leading positions in high-margin, niche products… our analysts believe there’s still plenty more potential growth in the pipeline.

Here’s your chance to discover exactly what has got our Motley Fool UK investment team all hot-under-the-collar about this tiny £350+ million enterprise… inside a specially prepared free investment report.

But here’s the really exciting part… right now, we believe many UK investors have quite simply never heard of this company before!

Click here to claim your copy of this special investment report — and we’ll tell you the name of this Top Small-Cap Stock… free of charge!

Kevin Godbold has no position in any share 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.

Our 6 'Best Buys Now' Shares

The renowned analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.

So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we're offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our 'no quibbles' 30-day subscription fee refund guarantee.

Simply enter your email address below to discover how you can take advantage of this.

I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement.