The Motley Fool

Forget the Bitcoin price! Here’s how I’d invest £150 a month in UK shares to make a million

Image source: Getty Images.

Headlines tell us that the Bitcoin price has been hitting a three-year high. November has been a particularly strong month for one of the most high profile cryptocurrencies. It’s suggested by some that it’s seen as a better hedge than gold against inflation and weakening currencies. And that’s why the price has been rising.

For me though the almost completely unregulated currency holds no appeal versus the returns I can get from investing in profitable income and growth UK shares. Best of all, it doesn’t take much money to start investing in shares. It’s perfectly possible to invest an amount like £150 a month in UK shares. This can grow substantially over time in a process known as compounding that can make you far wealthier, in my view, than Bitcoin ever could.

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...

The appeal of shares over Bitcoin

The Financial Conduct Authority describes cyptoassets, which is what Bitcoin falls under, as “very high risk, speculative investments. If you invest in cryptoassets, you should be prepared to lose all your money.”

It does in fairness have a similar warning for penny shares. However, to make my million from modest monthly investments, I plan to stick mainly to the FTSE 350 and some of the larger AIM-listed shares.

For me these shares are far less risky than a cryptocurrency – especially now that share prices in some companies are trading on very cheap valuations.

How I’d invest £150 a month in UK shares to make a million

Specifically, if I was investing monthly and drip-feeding my investments I’d start with an investment fund. I’d do that through a platform like Hargreaves Lansdown so that I could minimise my costs and build up my holdings in a professionally managed investment. I’d also be comforted by the diversification that a fund can provide.

Once I’d done that I’d look to build up a pot of cash to invest £450 every three months into an individual share or an investment trust. The advantage again would be to minimise my trading costs and tax.

For the funds and any individual holdings, I’d want to identify shares that combine cheap valuations, dividend payments and share price growth potential. Given this year’s dividend cuts and the economic environment, shares that combine all these qualities are hard to find. And other investors will also be looking for them meaning they might not be cheap for long.

I think shares like Persimmon, Legal & General, and National Grid, all fit the bill of shares that combine these characteristics. They are shares I’ve actually held for a long time for this very reason. I’d happily add £150 a month to my stocks and shares ISA and drip feed buying more shares in these quality companies.

Over the coming years, I truly believe they will make any investor far better off than investing in Bitcoin will.

“This Stock Could Be Like Buying Amazon in 1997”

I'm sure you'll agree that's quite the statement from Motley Fool Co-Founder Tom Gardner.

But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.

What's more, we firmly believe there's still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.

And right now, we're giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool.

Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge!

Andy Ross owns shares in Persimmon, Legal & General, and National Grid. The Motley Fool UK has recommended Hargreaves Lansdown. 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.