The worst public health emergency for a century has heaped unprecedented strain on the global economy. It’s meant that UK share investors like me have had to be extra careful before buying for their stocks portfolios. 2020 saw swathes of corporate casualties and a legion of British stocks cutting their dividends in response to the crisis.
The enduring pandemic means that more pain could be in store. However, it doesn’t mean that UK share investors need to run for the hills. At least, not in my opinion. I’ve continued to build my Stocks and Shares ISA over the past year despite Covid-19. I don’t just expect these British stocks to provide brilliant returns over the near term. I reckon they’ll make me a lot of money through the next decade at least.
#1: Animal magic
I bought shares in CVS Group a year ago as a play on the booming animal care market. The amount people spend on their furry friends has proved remarkably resilient despite the Covid-19 pandemic. If anything spending in this area has risen as pet adoption rates have recently soared. Veterinary care provider CVS’s interims this week showed like-for-like revenues leap 8.2% between July and February. Promisingly the business has considerable balance sheet strength to keep expanding at a swift pace to make the most of this enormous market. There is a shortage of veterinary surgeons and nurses in the UK which could constrain future profits growth at the business, though.
#2: A top UK logistics share
Clipper Logistics is another UK share I bought in 2020 as the public health emergency took off. With lockdowns dragging on it became clear that impressive e-commerce growth rates in recent years were headed to the stars. This played into the hands of logistics specialists like Clipper which provides an array of services to retailers. Indeed, revenues at this particular operator soared 50% year-on-year in the months of November and December. I’m backing online shopping activity to keep ballooning as technological improvements and heavy multichannel investment by retailers enhances recent consumer trends. Bear in mind, though, that an online sales tax being considered by the British government could significantly hamper demand growth at Clipper Logistics.
#3: A brilliant emerging markets play
I think that owning companies that operate in emerging markets is essential for any stocks portfolio. A combination of soaring population growth and rocketing personal wealth levels provides a wealth of opportunity for UK share investors like me. I chose to bulk up my own exposure in this area by buying shares in Prudential two Januarys ago. This FTSE 100 life insurance giant’s tentacles cover large parts of Asia and the company’s profits here surged 13% in 2020. Analysts at GlobalData expect the life market in this part of the world to keep swelling, too. They reckon written premiums in Asia will grow to $1.5trn in 2023 from $1.2trn in 2019. It’s important to remember, however, that ‘The Pru’ operates in competitive markets and that some of its rivals have greater scale with which to grab customers.
Markets around the world are reeling from the coronavirus pandemic…
And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.
But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times.
Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down…
You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm.
That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away.
Royston Wild owns shares of Clipper Logistics, CVS Group, and Prudential. The Motley Fool UK has recommended Clipper Logistics and Prudential. 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.