By following billionaire investor Warren Buffett’s rulebook, even someone starting their wealth-building journey at age 50 can still achieve impressive results. And with the right moves, it’s possible to drastically upgrade your longer-term retirement lifestyle with a chunky pension pot.

So for investors starting from scratch today, how much money could they make over the next few years following in Buffett’s footsteps? And what exactly are his golden rules?

What’s the secret sauce?

Over the years, Buffett’s shared quite a few important nuggets of investing wisdom. But perhaps the five most important rules are:

1. Only invest in businesses you understand.
2. Invest in quality businesses at fair prices.
3. Be greedy when others are fearful.
4. Reinvest any dividends earned.
5. Stay invested through volatility.

Looking at Buffett’s own investing track record, it’s clear he’s been rigorously sticking to this framework.

His early investing style may have focused on dirt cheap ‘cigar butt’ value stocks. But that strategy evolved to instead find and invest in businesses with durable competitive advantages, even if they’re not trading in deep-value territory.

He notoriously avoided the technology sector until more recently due to fear of not fully understanding the industry, and has continuously invested heavily during stock market crashes and corrections. All the while reinvesting dividends received, and staying invested during times of crisis instead of panic selling like everyone else.

There’s no denying this style of investing requires immense discipline and patience. But as one of the world’s richest people, it’s a strategy that holds a lot of weight.

Which UK stocks follow Buffett’s principles?

The Oracle of Omaha’s style means he often invests in slow-and-steady compounders that rarely make it into the headlines. And here in the UK, we have a long list of such businesses, including Halma (LSE:HLMA).

The safety, environmental analysis, and healthcare instrument enterprise operates with a radically decentralised business model.

With 50 independent subsidiaries, each with its own niche monopoly of supplying mission-critical components and services, Halma’s dug out a vast and diversified moat. And while growth often isn’t explosive, it’s been remarkably consistent, leading to 22 years of uninterrupted record-breaking profits.

Even in just the last 10 years, shareholders have earned a chunky 17.8% average annualised return. That means a 50-year-old drip feeding £500 a month since April 2016 is now sitting on £163,579 at age 60.

So is Halma still a top stock?

What’s the verdict?

Even in 2026, Halma remains a top-notch business. Demand for its products is strongly tied to structural megatrends, not cyclical ones. And even though expansion through acquisition can be a risky growth strategy, management’s proven its ability to identify, execute, and integrate bolt-on businesses.

Of course,  that doesn’t guarantee future buyouts will prove as successful. And if the firm makes a series of bad investments, it could damage the balance sheet and harm shareholder returns. There’s also a valid anti-Buffett-like argument to be made about its valuation.

At a forward price-to-earnings ratio of 35, Halma shares are far from cheap. And that does open the door to volatility if the firm makes even a small misstep. Nevertheless, it’s a premium that’s well earned, in my opinion, making it potentially fall within Buffett’s ‘fair price’ category. That’s why I think Halma shares indeed deserve a closer look.

The post How you can use Warren Buffett’s golden rules to start building wealth at 50 appeared first on The Motley Fool UK.

Zaven Boyrazian has no position in any of the shares mentioned. The Motley Fool UK has recommended Halma Plc. 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.

Motley Fool UK 2026

Penny stocks are notoriously risky investments. But for investors who snap up shares early on in businesses that later evolve into industry leaders, the returns can be game-changing.

And there are quite a few impressive examples of such explosive gains being unlocked:

• Melrose Industries has surged from around 30p in 2003 to 567p today – a 1,790% return.
• Judges Scientific has skyrocketed from around 64p in 2009 to 4,410p today – a 6,791% return.
• In 30 years, Diploma has jumped from roughly 82p to 6,910p – an 8,327% return.

A simple £1,000 investment at the start of these journeys would be worth over £10,000 today. And in the case of Diploma, the figure’s much closer to £84,269!

But the question now becomes, which penny stocks in 2026 could be the next major winner?

An emerging 10x opportunity?

In 2026, there’s a long list of promising UK micro-cap stocks to choose from. And among these, perhaps one of the most compelling is Helium One Global (LSE:HE1).

This is a helium exploration business with two active projects:

• It’s flagship Southern Rukwa project in Tanzania covering a vast 1,900 square kilometre area of the Rukwa Rift Basin (100% owned).
• A recently-acquired 50% working interest in the Galactica-Pegasus project in Colorado, US, currently being operated by Blue Star Helium.

While Galactica-Pegasus has started extracting helium, its group’s Rukwa project that could be transformational. Rukwa is estimated to contain up to 138 billion cubic feet of the inert gas. And at current market rates, such an enormous reserve could yield anywhere between $69bn to $166bn in revenue over its lifetime.

Compare that against Helium One Global’s £62.7m market-cap, early investors could be on track to earn a 10x return, even if material resource estimates are significantly reduced later down the line.

So should penny stock investors rush to buy shares today?

Understanding the risk

The prospect of Helium One potentially sitting on a genuinely world-class helium reserve is undeniably exciting. Even more so, given that the gas is a critical and non-substitutional input material for semiconductor manufacturing, quantum computing, and space technology.

However, it’s essential to recognise that we’re still in the very early days of this project.

The enormous mineral resource estimate has yet to be confirmed by drilling tests. And while the company has secured mining licenses from Tanzanian regulators, mining infrastructure, processing plants, off-take agreements, and commercial production remain on the to-do list – a process that will take years and vast sums of money to complete.

Is a 1,000%+ return realistic?

The catalysts for a 10x return are real and progressing. But exploration companies fail far more often than they succeed. That includes those with promising reserves simply due to running out of funding.

The near-term revenue from its Galactica-Pegasus project will help on that front. But it isn’t going to be enough. And Helium One will still need to secure external financing, potentially heavily diluting early investors.

That’s why, despite its explosive potential, I haven’t bought any shares. But for investors looking for a lottery-like penny stock, comfortable with the risk of a total loss, I feel Helium One Global looks like one of the most credible opportunities to consider compared to other penny stocks in the UK.

The post How to try and turn £1,000 into £10,000+ with penny stocks appeared first on The Motley Fool UK.

Zaven Boyrazian 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.

Motley Fool UK 2026

A stock market crash is my favourite time to start buying FTSE 100 shares. Why? Because when everyone else is panicking, terrific high-quality companies often end up trading at substantial discounts. And as the saying goes, investors need to “buy low and sell high”.

That’s why when the stock market eventually crashes again, I won’t be wasting this exceptional chance to snap up some fantastic dirt cheap bargains. But this also raises an interesting and tricky question: should I only ever buy shares during a market downturn?

That’s a particularly pressing question right now, given rising global tensions, a looming energy crisis, and substantial trade disruptions. So should I wait for disaster to strike?

No. I’m not waiting

While it may seem counterintuitive, waiting for the stock market to implode can actually harm a portfolio’s performance. The problem is that stock market crashes are notoriously hard to accurately predict, with countless failed attempts from even the smartest minds in finance.

Even in today’s current economic and geopolitical landscape, a crash is far from guaranteed.

The conflict in Iran is obviously concerning, but a successful peace agreement could swiftly end those concerns. And even if the war drags on, the subsequent energy shock could prove short-lived or less severe than expected as other countries ramp up oil & gas production to take advantage of the supply gap.

That’s why in the midst of all the recent chaos, I’ve been drip feeding money into the stock market throughout the last two months. And while I’ve mostly focused on US stocks, several FTSE 100 stocks are now looking rather promising.

What stocks are on my radar?

I’m bullish on quite a few FTSE 100 stocks in 2026. And among my favourite picks stands the Warhammer creator, Games Workshop (LSE:GAW).

With the launch of its 11th Edition of Warhammer 40,000 just a few months away, the company appears to be on track for another gangbuster year of revenue and profit growth for its core miniature business.

Crucially, this timing also appears to line up nicely with the planned completion of its new Factory 4 facility, expanding its existing manufacturing capacity. And with a fifth site already secured for future growth, the business appears to be preparing to scale its operations significantly in the coming years.

As an existing shareholder, this operational expansion has me excited. However, even though I’m bullish, there are still some important near-term risks to monitor.

What should investors watch?

It’s not just oil & gas that’s been disrupted due to the Iran war. Global supply of petrochemical plastics, like the ones that Games Workshop uses to manufacture its miniatures, has also been hit, likely translating into higher raw material costs for the business.

Luckily, Games Workshop commands exceptional pricing power, granting flexibility to pass this cost along to customers. But in an environment of rising energy and food prices, that power might be put to the test, with volumes potentially taking a hit.

My contrarian view is that demand for the 11th Edition launch box will offset this headwind. But clearly, that’s not a guaranteed outcome.

Nevertheless, with an impressive product line-up, incoming production expansion, and an enviable track record, this is a risk I feel might be worth taking. That’s why I’m seriously considering snapping up more shares today.

The post Should I buy FTSE 100 shares today, or wait for the next stock market crash? appeared first on The Motley Fool UK.

Zaven Boyrazian has positions in Games Workshop Group Plc. The Motley Fool UK has recommended Games Workshop Group Plc. 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.

Motley Fool UK 2026

BAE Systems’ (LSE: BA.) share price has jumped about 77% since the start of 2025, taking it to a little over £20 per share. That’s a huge move for a FTSE 100 defence contractor.

It’s comfortably beaten Melrose Industries and is slightly lagging Rolls-Royce.

So is it fair for new investors to ask whether they’ve missed the boat, and for existing holders to wonder if it’s time to bank profits?

What has driven the surge?

Sadly, global conflicts drag on, despite attempts at peace deals. As a result, global military spending reached a record $2.7trn in 2024, up roughly 9% in real terms from the year before.

Naturally, there’s been particularly sharp increases in Europe and the Middle East. Conflicts in these two regions have kept defence and energy security at the top of political agendas. That, in turn, has ramped up demand for kit and services from contractors in the sector.

BAE’s own numbers have also impressed. In 2025:

• Revenue reached £28.3bn, up 8% year on year.
• Operating profit hit £2.9bn.
• Basic earnings per share (EPS) climbed to 68.8p. 

These were all ahead of the prior year.

Meanwhile, order intake reached around £36.8bn and the order backlog climbed to a record £83.6bn. This gives the group unusually strong visibility over future earnings.

Valuation: clearly expensive

After such a run, BAE does not look cheap. Just looking at a few quick valuation metrics, we can see the shares trade on the following:

• A price-to-earnings (P/E) ratio around 31.
• A price-to-book (P/B) multiple above 5.
• An enterprise value to EBIT of roughly 27.

Those are all well above typical long-run defence sector averages.

Before Russia’s invasion of Ukraine, BAE’s forward P/E was closer to 12 times earnings, so the market has more than doubled the rating it’s willing to pay for the stock.

Plus, with a yield of only 1.7%, dividends add minimal income potential. So the majority of returns from here will need to come from capital gains rather than income.

What are the risks?

There are several risks to keep in mind. Most critically, BAE’s dependance on government defence budgets. As global conflicts evolve, political shifts or budgetary reallocations could slow order growth.

The shares may have also seen uncharacteristically high growth due to rising tensions in Eastern Europe and the Middle East. Historically, such periods are often followed by a short-term correction as tensions ease.

Closer to home, BAE is dealing with industrial relations issues, including strikes in parts of its UK workforce. This could negatively impact the success of recent acquisitions like Ball Aerospace.

The bottom line

For new investors, the current valuation leaves little room for disappointment. Any setback on contracts, budgets or geopolitics could hit the shares hard in the short term.

Realistically, growth in the upcoming 12 months is unlikely to match the spectacular gains seen since 2025.

For existing shareholders or patient investors, it’s still worth considering the shares. The combination of a record order book, government spending and a growing dividend keep the long-term thesis intact.

But for those seeking outsized growth, I’ve spotted more appealing value plays on the FTSE 100 lately.

The post After a 77% rally, the BAE share price looks bloated. How should investors react? appeared first on The Motley Fool UK.

Mark Hartley has positions in BAE Systems. The Motley Fool UK has recommended BAE Systems, Melrose Industries Plc, and Rolls-Royce Plc. 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.

Motley Fool UK 2026

With the cost of living continuing to rise, having a tax-free passive income from a Stocks and Shares ISA can ease the burden. Even having an extra £1,000 coming in each month can be a massive help. But how big does an ISA need to be to generate this sort of monthly income?

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

Crunching the numbers

There are lots of different ways to earn a passive income in the stock market. The most popular is arguably investing in dividend shares. But for investors like me who prefer owning more growth-oriented businesses, it’s still possible to generate an income by trimming a few shares each month.

If the goal is to earn £1,000 a month, or £12,000 a year, then following the 4% withdrawal rule means I’ll need a Stocks and Shares ISA worth around £300,000.

Obviously, that’s not pocket change. And for many, it might seem out of reach. But it’s actually a far more achievable goal than what most might think.

How can I make £300,000?

Let’s say I’m starting from scratch today, and my ISA portfolio matches the UK stock market’s average performance of generating an 8% annualised return. Then, by simply investment my £20,000 annual allowance for 10 years would result in an ISA worth £304,971.04.

Of course, not everyone has the luxury of being able to invest roughly £1,667 each month. But the good news is, even with £500 to spare on a monthly basis, the destination is still achievable in just over 20 years.

But being patient for two decades is obviously less than ideal. So beyond investing more money, is there another way to accelerate the wealth-building process?

How to target bigger gains

Instead of matching the stock market’s average return, investors can seek to beat it with a custom-crafted portfolio of hand-picked stocks. And by owning the right businesses, the returns can be game-changing.

Take Goodwin (LSE:GDWN) as a perfect example. Over the last 10 years, anyone who’s been reinvesting dividends has earned a staggering 24.06% annualised return – three times the stock market average!

At this rate, drip feeding £500 each month would now be worth £245,104.05 – 82% of the way towards the target of £300k in half the time. And those investing £20,000 a year over the last decade are now sitting on a staggering £817,176.92!

Is Goodwin still a buy?

The company’s a family-controlled precision engineering group that’s embedded in a series of multi-decade contracts, with some running into as late as the 2060s, providing management with exceptional revenue visibility.

With Goodwin recently repositioning its business to focus on higher-margin defence and nuclear contracts, trading profits across the first six months of its 2026 fiscal year (ending in April) have more than doubled from £17.1m to £37.2m. And the long duration of Goodwin’s contracts organically creates structural tailwinds, granting impressive operating leverage.

Of course, this strategic pivot also has its downsides. Both the nuclear and defence industries are complex, technically demanding, and heavily regulated. Contract delays, changes in design requirements, or political priority shifts could all adversely impact the future order book and profit timelines.

So is the risk worth it? That ultimately depends on an investor’s individual risk tolerance. But in my opinion, Goodwin has the hallmark traits of an exceptional quality compounder that deserves a closer look.

The post How much do I need in a Stocks and Shares ISA to earn £1,000 a month? appeared first on The Motley Fool UK.

Zaven Boyrazian has no position in any of the shares mentioned. The Motley Fool UK has recommended Goodwin Plc. 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.

Motley Fool UK 2026

If you have a good lump sum of savings in the bank, you could instantly unlock a passive income by using this money to invest in quality dividend-paying UK shares. But with the right investments, this income stream could gradually become far more substantial over time.

So let’s say an investor has £9,000 sat on the sidelines. How much could dividends generate today? And how much could this be worth in the future?

What’s the income potential?

Here in the UK, the FTSE 100 is by far the most popular destination for capital. And right now, it offers an overall dividend yield of 2.93%. That means if I were to invest £9,000 today in a low-cost index tracker, my portfolio would now generate a £263.70 passive income overnight.

On the surface, that’s not much different to a much-lower-risk savings account. But the key advantage of the stock market is that, unlike a savings account, the yield gradually increases in line with company earnings.

Looking again at the FTSE 100, over the last decade, dividends have increased by an average of 3.3% on an annualised basis. And assuming this trend continues over the next 10 years, the £263.70 dividend income today could grow to £364.85.

Yet, could stock pickers potentially earn even more?

A bigger income opportunity?

Instead of relying on index funds, investors can craft a custom portfolio. This requires a lot more effort and discipline. But it also opens the door to potentially life-changing returns as long-term investors in Diploma (LSE:DPLM) have learned first-hand.

Ten years ago, the value-add distributor of industrial products and services only offered a modest payout of 2.73%. But with the business proving to be a free cash flow generating machine, Diploma’s grown its dividends each year by an average of 13.1% — almost four times what FTSE 100 index investors have enjoyed.

In terms of money, that means anyone who invested £9,000 in April 2016 has gone from earning a £245.70 passive income to £764.42 today. And if all this money had been automatically reinvested, the initial £9,000 would now be worth £95,721.30!

Clearly, Diploma has been a fantastic investment. But is it still worth buying today?

Does Diploma hold up in 2026?

While selling specialised wiring, fasteners, and seals, among other industrial products, is hardly an exciting business model, it’s nonetheless a critical one. And it’s why just last month, the company announced a significant upgrade in its 2026 full-year guidance, raising organic growth and profit margin expectations.

Its strategy of continuously executing bolt-on acquisitions and then improving its acquired businesses has proven to be a winning formula. But sadly, that doesn’t make it a guaranteed winner in the future.

Acquisitions, even smaller digestible ones, still come with significant execution and integration risk. And unexpected delays are a notorious source of value destruction and cost overruns in this type of dealmaking, especially in more complex sectors like aerospace and life sciences.

Nevertheless, in my opinion, Diploma’s quality and track record make this a risk worth considering, especially given its increased dividends for 20 years in a row. And while new investors today may only enjoy a 0.89% yield on day one, left to run, this could become far more substantial further down the line.

The post How to turn £9,000 of savings into a £263.70 passive income overnight appeared first on The Motley Fool UK.

Zaven Boyrazian has no position in any of the shares mentioned. The Motley Fool UK has recommended Diploma Plc. 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.

Motley Fool UK 2026

Last week was tough for the FTSE 100. It ended the week down 2.71% at 10,379.08. Is the Iran war finally catching up with it?

So far, the blue-chip index has been surprisingly resilient. That’s been a pattern across global stock markets, with investors shrugging off warnings of an oil price spike and fuel shortages. Lately, they’ve preferred to focus on an upbeat US earnings season.

But with the crucial Strait of Hormuz tanker route still under threat, the oil price climbed to $105 yesterday, and the FTSE 100 retreated. Where the war goes next is anybody’s guess. So what should we all do?

Should we just get stuck in and start investing?

At The Motley Fool, we think it’s always a good time to buy shares. With the proviso that investors should take a long-term view. The real benefits of equity investing come over time, as share prices and dividends compound and grow. The earlier investors kickstart that process, the better. Also, anybody who delays stock purchases hoping to find an even better entry point will typically miss it, leaving their money sitting on the sidelines even longer.

I’d argue that we’re already looking at a buying opportunity. On 27 February, the day before the US attacked Iran, the FTSE 100 hit an all-time high of 10,910. It’s down almost 5% since. And some individual FTSE 100 stocks have fallen a lot more than that.

Babcock shares have plunged

Perhaps surprisingly, shares in defence, aerospace, and security stock Babcock International Group (LSE: BAB) are down 22% over the last three months. With the US at war, Europe looking to rearm and the UK government under pressure to spend more on the military, it should be flying.

Babcock combines solid operational performance with a £9.9bn contract backlog, and has even been running a £200m share buyback. But I think the share price had simply flown too far, too fast. Some investors will be taking their ample profits. There’s also CEO transition uncertainty following news that CEO David Lockwood plans to retire this year.

I reckon this stock is worth considering

The share price is still up 42% over 12 months, and a stunning 275% over three years. That rapid growth sent the price-to-earnings ratio towards 30, and many clearly felt the good news was priced in, leaving Babcock vulnerable to a re-rating.

We have that now. Its forward P/E is down to a relatively modest 19.8. So it’s better value than it was. Babcock is no longer a recovery play, and I don’t expect the shares to rise as quickly as before. But those who felt they’d missed out on the chance to grab defence exposure at a fair price, now have a second chance. I think it’s worth considering today.

I can see plenty more blue-chips that have been taken a beating in recent months, and are ripe for a recovery, once sentiment improves. So yes, I think now is a good time to buy FTSE 100 stocks. As ever, with a long-term view. For all we know, the index could rebound next week. That’s investing.

The post Is now a good time to buy FTSE 100 shares? appeared first on The Motley Fool UK.

Harvey Jones 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.

Motley Fool UK 2026

While Rolls-Royce Holdings (LSE: RR.) shares have been rocketing, analyst price targets have done so alongside. Has anyone been expecting expert enthusiasm to fade a bit as the valuation has grown?

Well, it mostly hasn’t. The top of the range of broker price targets currently stands at close to 1,750p. That’s around 50% ahead of the price at the time of writing. The low end of the scale, meanwhile, suggests we could see a fall of about 20%. So it seems not quite everyone is on board for the ride.

I just wonder how realistic the optimists are being. After all, Rolls-Royce shares are on a forward price-to-earnings (P/E) ratio of about 35 now. We need to look a bit more closely at that valuation.

Future potential

By FTSE 100 standards, that P/E might seem a bit steep. But compared to some of the big growth shares we’ve seen in the past, Rolls might still look like it’s in the bargain basement. In the short term, we often see big valuations based on modest current earnings. And they can fade rapidly as profits climb.

To look at an extreme example, Tesla in the US is on a P/E of 285. That, of course, is not driven by current earnings levels. And it’s really nothing to do with electric vehicles either. No, it’s based in what the potential for the business could turn into… and there’s little in the way of AI-led technology that’s off the table as far as CEO Elon Musk is concerned.

Now, UK investors clearly don’t expect Rolls-Royce profits to keep pace with anticipated Tesla-style growth. But anything significantly ahead of the Footsie market average could quickly make today’s valuation look sensible.

Next few years

Are forecasts for the next few years enough to make me want to buy? I’m really not so sure. Earnings predictions would drop the P/E to 25 by 2028, based on where Rolls-Royce shares are today. And yes, I’ve bought growth stocks at higher valuations than that in the past. Some of them even turned out well.

A look at the company’s anticipated cash generation makes me feel good. Analysts expect net cash of more than £5bn on the books by 2028. And this is a company that nearly collapsed under debt just a few years ago. I also love what CEO Tufan Erginbilgiç has achieved. How he’s reshaped the company has been truly remarkable.

Decision time?

Why do I hesitate over Rolls-Royce shares? It’s because I see a period of uncertainty ahead. How long can profit growth keep being driven by aero engines and defence demand? Those both surely must reach a plateau. So until we see how the next phase of transition for the company turns out, I’ll remain hands-off. And I think investors might be wise to consider some better-value alternatives.

I can, however, see why Rolls-Royce enthusiasts are still considering buying at today’s price. They might turn out to be right. Again.

The post Here’s how Rolls-Royce shares could climb another 50%… or fall 20%! appeared first on The Motley Fool UK.

Alan Oscroft has no position in any of the shares mentioned. The Motley Fool UK has recommended Rolls-Royce Plc. 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.

Motley Fool UK 2026

I still remember the first time I started investing in FTSE shares over a decade ago. Mostly because my first £1,000 investment was a tremendous success, more than doubling in value in the space of a few months, allowing me to buy my first car.

But the memory is also vivid for another reason: I mistook luck for skill, and proceeded to make some terrible, misguided decisions that sent me back to square one.

What happened?

In early 2014, I made my first investment in an emerging biotech group called Oxford Biomedica, now known as OXB (LSE:OXB). Why? Because I read a news article that the firm was developing a novel gene and cell-therapy platform for drug development.

Looking back, this ‘due diligence’ was hardly up to par. And I had no clue about the dangers of investing in young biotech businesses – this will be relevant again in a moment.

Fortunately, my investment proved to be near-perfect timing. A few months later, OXB’s LentiVector platform proved to be a massive success, enabling management to secure a landmark commercial deal with Novartis. The result? OXB shares surged from around 100p per share to over 600p on a split-adjusted basis.

So what did I do with all my winnings (beyond buying a red second-hand Renault Clio)? I, of course, piled everything into another young early-stage biotech business called ValiRx.

After 12 months, I lost almost 90%, at which point I sold my shares in dismay and decided maybe I wasn’t Warren Buffett after all. And by the way, ValiRx shares are still down 99.9% today.

Lessons learned

The most obvious lesson isn’t to invest in a risky biotech group with no revenue, no products, and massive capital expenditures ahead. But the more valuable teaching is to recognise and understand why OXB succeeded where ValiRx failed.

OXB, while still risky, had a unique product that large biotech groups’ research cell therapies desperately needed. This provided a valuable and powerful moat to the firm that has since propelled it from a tiny penny stock to a £775m enterprise today.

Having realised this, I eventually invested in OXB again in 2018. And alongside other more intelligent and informed investment decisions, I recovered from my losses and have since propelled my wealth to fantastic highs.

Is OXB still a buy in 2026?

Today, OXB focuses almost exclusively on its LentiVector platform as a gene therapy contract development and manufacturing organisation. In simple terms, it helps other biotech companies develop and manufacture their own treatments.

The move massively de-risked the business, since OXB’s success no longer depends on successful and expensive clinical trials, it gets paid either way. And since viral vector manufacturing is extraordinarily complex, the company continues to benefit from the advantage that kicked off its journey – enormous barriers to entry.

But while cell and gene therapy is a structural megatrend within the biotech sector, it’s important not to understate the risks. OXB’s still unprofitable, its revenue’s dependent on a small number of major pharmaceutical clients, and the balance sheet’s started accumulating significant debt.

So is OXB a promising FTSE growth share opportunity in 2026? Yes. Is it risky? Absolutely. That’s why I’ve only allocated 1.5% of my portfolio to the business.

The post How I invested my first £1,000 in FTSE shares… and the mistakes I made appeared first on The Motley Fool UK.

Zaven Boyrazian has positions in OXB. 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.

Motley Fool UK 2026

I’m looking to earn a passive income that will supersize my earnings during retirement far more than just relying on the State Pension.

In 2026, the full State Pension amounts to £241.30 a week, or £12,547.60 a year. But I’m considering a plan to earn an extra £15,000 on top of that by investing just £290 a month in UK shares. Here’s how.

What’s the plan?

Investing in stocks and shares comes with notable risks. But with prudent diversification and following robust portfolio management principles, these risks can be kept under control. And over the long term, the stock market has historically rewarded investors with an average return of 8% a year.

Since I’m planning on following the 4% rule, that means to earn a £15,000 sustainable passive income, I’m going to need a portfolio worth around £375,000. That’s obviously quite substantial. But even if I were starting from scratch today, it remains perfectly within reach when unleashing the power of a Self-Invested Personal Pension (SIPP).

Contributions made to this snazzy retirement wealth-building tool are automatically topped up by the government with 20% tax relief. So for every £290 added, a total of £362.50 of investable capital becomes available. And investing this money at an 8% annualised rate will build a £375k retirement portfolio in around 26 years.

That means even a 40-year-old today still has enough time to build this nest egg and retire by 66. But what if I want to speed up this process, or target a more impressive retirement income stream?

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

How to accelerate compounding

By using a stock-picking strategy, investors can focus their portfolio on only the best and brightest of businesses with strong, durable moats and impressive cash generation. And that’s definitely something the shareholders of 4imprint Group (LSE:FOUR) have benefited from over the last 15 years.

Selling branded merchandise such as pens, mugs, tote bags, and trade show displays, among others, doesn’t sound like a particularly thrilling enterprise. But 4imprint has nonetheless spent its years developing impressive unit economics that allowed it to scale, steadily taking the lion’s share of a highly fragmented market.

The result? Anyone who has been drip feeding £362.50 a month since April 2011 is now sitting on a staggering £601,956.49 – enough to generate a passive income of £24,078.26 (almost double the State Pension in 2026).

But is 4imprint still worth considering today?

What’s the conclusion?

Since January 2025, 4imprint shares have actually been down in the dumps. The company relies on a long list of suppliers, primarily coming out of China. As such, it’s been hit hard by the threat of US tariffs. And since most of its customers tend to be small- and medium-sized companies, the firm’s vulnerability to sudden discretionary business spending cuts has resulted in a revenue stream that’s effectively stalled.

This perfectly highlights the group’s cyclical nature. But it’s not the first time management’s had to navigate lacklustre market conditions. And with the shares now trading at an earnings multiple of just 12.9, the valuation looks quite attractive for a proven compounder that’s temporarily out of favour.

With all the crucial fundamentals and long-term demand still intact, the risk-to-reward ratio looks quite promising, in my eyes. That’s why I’m already considering it for my SIPP in a quest to beat the State Pension.

The post How to invest £290 a month in UK shares for an income that aims to beat the State Pension appeared first on The Motley Fool UK.

Zaven Boyrazian has no position in any of the shares mentioned. The Motley Fool UK has recommended 4imprint Group Plc. 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.

Motley Fool UK 2026