£5k to invest in cheap UK shares? 3 stocks I’d buy in my ISA to make a million

I’m looking to get rich during the new bull market. Here are two cheap UK shares I think could help make plenty of new ISA millionaires, including me.

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Are you looking for strategies to become a stock market millionaire? Well, here’s one tried-and-tested plan which has made UK share investors fortunes for decades. Buying heavily-sold stocks following stock market crashes.

It’s a strategy that made hundreds (if not thousands) of Stocks and Shares ISA investors millions during the 2010s. These opportunistic investors snapped up top-quality UK shares whose prices had collapsed following the 2007-2008 financial crisis. They then got rich as these stocks rebounded in value amid improving economic conditions.

Share investors need to be extremely careful before splashing the cash, of course. The Covid-19 crisis continues to worsen and the outlook for many UK shares remains fraught with peril. But diligent investors who take the time to do proper research before buying have an opportunity to make a fortune in new bull market. Some might even get a seat in the millionaires’ club like those famous ISA investors.

macro shot of computer monitor with FTSE 100 stock market data in trading application

2 cheap stocks on my ISA radar

I’ve gone dip-buying for UK shares after the 2020 stock market crash. The last stock I bought for my Stocks and Shares ISA was soft drinks giant Coca-Cola HBC. I’m expecting this FTSE 100 stock to recover strongly from the Covid-19 crisis as the world reopens, driven by the industry-beating brand power of its soft drinks and its ever-expanding product ranges.

And there are many more cheap UK shares I’m thinking of buying in the days and weeks ahead. Here are two top stocks I think are ideal ISA buys in 2021:

  • I’d use HSBC Holdings’s failure to recover from the 2020 stock market crash as a dip-buying opportunity. Okay, the continuing public health emergency casts a cloud over the FTSE 100 bank in the near term. I’m confident the bank has a very bright future however, as heavy population and wealth growth in Asia — allied with low financial product penetration there — will light a fire under revenues growth later in the decade. Today, HSBC trades on a forward price-to-earnings growth (PEG) ratio of just 0.2. It carries a vast 5% dividend yield for 2021 too.
  • Advertising and marketing budgets are usually one of the fastest things to recover during upturns. And it’s why City analysts are expecting annual earnings at 4Imprint Group to rocket 270%-plus in 2021. This UK share makes a wide selection of marketing materials for businesses to dole out to clients. And it generates almost all profits from the US, a region whose economy will benefit from massive stimulus measures in the short-to-medium term. 4Imprint also trades on a forward PEG ratio of 0.2.

Making millions with UK shares

I don’t think share investors should delay buying UK shares right now. There are tonnes of five-star stocks that will rocket in value during the new bull market. And with the right investment strategy they can expect to make big money in the next decade. Possibly even a million.

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.

Royston Wild owns shares of Coca-Cola HBC. The Motley Fool UK has recommended 4imprint Group and HSBC Holdings. 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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