The Motley Fool

ISA millionaires are buying these FTSE 100 stocks today

Image source

I’ve always believed FTSE 100 stocks are a great way to build my wealth, but I didn’t realise how good. New research shows there are thousands of ISA millionaires in the UK, and they’ve loaded up with shares on the index.

Hargreaves Lansdown reports 579 ISA millionaires on its platform, and they’re big on dividend-paying FTSE 100 stocks.

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...

Oil giants BP and Royal Dutch Shell, pharmaceutical companies AstraZeneca and GlaxoSmithKline, financials Lloyds Banking Group, Legal & General Group and Aviva, and National Grid, Unilever and Vodafone Group make up their top 10 picks. They all come with company-specific and sector risks, of course, but I’d buy them. 

I’d buy these FTSE 100 stocks

Perhaps that isn’t surprising. When you aggregate 579 different ISA portfolios, it’s inevitable that big, popular FTSE 100 stocks will appear more frequently.

However, it’s still a worthwhile reminder that investing in solid blue-chips is a great way to build wealth. These giants may not always deliver stellar share price growth, but their dividends can roll up year after year. That’s not guaranteed though, and all share investing includes the risk of losing money too.

That’s why it’s interesting that the data also shows ISA millionaires ‘play it safe’. They’re less likely to hold the most risky FTSE 100 stocks, such as airlines and hotel groups, that may not make it through the pandemic. In other words, they didn’t need to make big calls or take excessive risks to build a million.

Platform AJ Bell has also published its ISA millionaire data and this shows they prefer individual shares to funds. An incredible 83% of their portfolios are in stocks, but just 14% in pooled funds. It said those with larger sums can afford to take the higher risks of investing in individual equities, because they have assets to diversify appropriately.

The average number of investments held by AJ Bell’s ISA millionaires is 28. ISA millionaires are putting their eggs in lots of different baskets (partly because they have so many eggs).

Becoming an ISA millionaire takes time

Again, they focus on FTSE 100 stocks. Most of the ones I’ve listed above also feature, as well as HSBC Holdings, Tesco and Unilever.

Here’s another interesting fact. The average Hargreaves Lansdown ISA millionaire is 71, while at AJ Bell, it’s 69. This reminds me of something I’ve said on the Fool, again and again. The best way to build wealth from FTSE 100 stocks is over the long term. The stock market isn’t a get-rich-quick mechanism. Instead, it can make me wealthy slowly.

That’s why I wouldn’t wait too long before starting investing if I was a beginner today. I wouldn’t do anything clever like trying to time the market either. I think the best thing for me to do is put money into FTSE 100 stocks. And leave it there.

I don’t expect to come close to being an ISA millionaire, but I do plan to build my own retirement wealth in a similar way. By investing in a spread of shares (and funds for overseas exposure) and leaving my money to grow for the long term. I’m talking decades here.

This opportunity tempts me.

A Top Share with Enormous Growth Potential

Savvy investors like you won’t want to miss out on this timely opportunity…

Here’s your chance to discover exactly what has got our Motley Fool UK analyst all fired up about this ‘pure-play’ online business (yes, despite the pandemic!).

Not only does this company enjoy a dominant market-leading position…

But its capital-light, highly scalable business model has previously helped it deliver consistently high sales, astounding near-70% margins, and rising shareholder returns … in fact, in 2019 it returned a whopping £150m+ to shareholders in dividends and buybacks!

And here’s the really exciting part…

While COVID-19 may have thrown the company a curveball, management have acted swiftly to ensure this business is as well placed as it can be to ride out the current period of uncertainty… in fact, our analyst believes it should come roaring back to life, just as soon as normal economic activity resumes.

That’s why we think now could be the perfect time for you to start building your own stake in this exceptional business – especially given the shares look to be trading on a fairly undemanding valuation for the year to March 2021.

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

Harvey Jones has no position in any of the shares mentioned. The Motley Fool UK has recommended GlaxoSmithKline, HSBC Holdings, Lloyds Banking Group, Tesco, and Unilever. 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

Renowned stock-picker Mark Rogers and his 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 click below to discover how you can take advantage of this.