Global stock markets are enjoying a ‘Biden Bounce’ in start-of-week trading and many UK shares have surged. But it’s no reason for investors to start celebrating. The evolving Covid-19 crisis could put paid to this mini bull run at any moment.
I’m not bothered by how UK share prices could perform in the weeks or months ahead though. I’m not even put off by the possibility of another stock market crash. I buy UK shares with a view to holding them for a decade or more. Over this sort of time horizon any short-term volatility has no effect on my chances of making BIG returns on my invested cash.
Getting rich with UK shares
If anything, stock market crashes can actually improve our chances of getting seriously rich from UK shares. Step one involves buying top-quality stocks that have been oversold during the panic. Step two requires sitting back and watching them rocket in value as the global economy recovers, corporate news flow improves, and investor optimism comes washing back into markets.
By doing some careful research it’s possible to avoid the duds and identify the oversold stars. Stocks that are in good shape come through the economic crash and generate brilliant returns for UK share investors. There’s plenty of help on hand from experts like The Motley Fool to help you dig out these bargains and formulate a sound investing strategy too.
Be like Buffett!
In confusing times like these it’s worth listening to the advice of people who have made fortunes from share investing. And there’s few that come with as great a track record of Berkshire Hathaway head honcho Warren Buffett. He’s amassed a whopping $79bn fortune by spotting opportunities that the broader market has missed.
The so-called Oracle of Omaha is very happy to share the wisdom he’s picked up along the way. And a pearl which UK share investors should treat seriously today is to “be fearful when others are greedy, and greedy when others are fearful.”
It’s no surprise the billionaire investor is so bullish. Buffett began his long investing career back in the 1950s and he has witnessed first hand a range of economic, social and political crises. And he’s seen US stock markets always recover strongly from these (indeed, the Dow Jones traded at record highs in February).
US stock indices have already clawed back plenty of lost ground in 2020. And I’m confident UK share markets will recover strongly from the Covid-19 crisis. It’s why I’ve continued to invest in my Stocks and Shares ISA. I believe Buffett’s sage advice will significantly bolster my chances to get rich and hopefully retire early. There are plenty of top-class shares to help me realise this dream 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.