It’s hardly unheard of to see a stock go up several times in value, but I was not expecting it so quickly from Barclays (LSE: BARC) shares. It’s been a real trip watching the value in my brokerage account over the last couple of years. From bottom to top, I saw the share price rise nearly four times.

From a 129p low in late 2023, the share price climbed to a high of 489p (although has retreated since). This makes it the best performing FTSE 100 bank over the period. And guess what? I think the stock is still in pretty good shape and might hit the 1,000p, or £10, mark sooner rather than later. Here’s why.

Why did I buy?

To start with, let me quickly explain why I bought in the first place a little while before that 2023 low. The simplified version: bargain basement valuations; rapidly rising inflation and interest rates; and the bank’s exposure to the US economy.

I had reservations too. The 2010s were something of a lost decade for the banking sector. The ghosts of 2008 were around every corner and Barclays shares dropped 59% over a 10-year period. There were no guarantees that the turnaround was coming soon, if ever.

So why am I bullish today? For one, valuations are still very reasonable. A price-to-earnings ratio of around 10 looks cheap as chips, and well below the FTSE 100 average. The price-to-book ratio of 0.79 looks like a 21% discount on the theoretical minimum of one. The runup of the last couple of years has not made banks look overpriced, in my view.

The impact of inflation and interest rates is similar to what it was a couple of years ago as well. Higher rates help banks to increase margins. More earnings could mean more share buybacks to help lift the share price. With inflation proving sticky – and the impact of an Iran war not helping matters – I see the Bank of England keeping rates elevated in the medium-term.

Cold water

The last factor of the US economy is perhaps even truer today than it was a while back. The country is leading the world on artificial intelligence, and its GDP growth figures put the rest of the developed world to shame. As Warren Buffett puts it: “Never bet against America.” All this is good for Barclays because of its high US exposure compared to other FTSE 100 banks.

I’ve been extremely positive so far, so allow me to pour a little cold water on the excitement here. It’s impossible to say whether a stock is a clear slam dunk ahead of time. And the exposure to the US could be a double-edged sword if the artificial intelligence trend proves to be a bubble and pops.

To sum up? The average stock doubles in value every seven or eight years. Will Barclays be one of those stocks that does it faster on the way to the £10 mark? Only time will tell for sure, but I think the stock is worth considering.

The post When will Barclays shares hit £10? appeared first on The Motley Fool UK.

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John Fieldsend has positions in Barclays Plc. The Motley Fool UK has recommended Barclays 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

It is never easy running an airline, as there are so many variables in the mix, from fuel costs to passenger demand. Despite that, easyJet (LSE:EZJ) has been one of the success stories of the British aviation sector in recent decades. Last year, for example, its headline pre-tax profit before tax was £0.7bn. Yet the firm currently has a market capitalisation of under £3bn. So, easyJet shares are selling for less than six times their statutory earnings.

There is an obvious reason for that: the Middle East war threatens to see passenger demand fall, while jet fuel prices have surged. It expects to report a headline pre-tax loss of between £0.5bn and £0.6bn for the first half of its current financial year.

Still, easyJet has triumphed through adversity before.

The pandemic hammered the shares, but they went on to more than double between October 2020 and April of the following year.

In just six months, that meant a great return for investors who had been brave enough to buy when the market had pushed the share price down.

Can easyJet ride the latest storm?

Just because something has happened before does not necessarily mean it will happen again.

History is littered with airlines that have successfully navigated multiple crises – until they met one that they could not survive.

Having said that, I am fairly upbeat about the medium- to long-term outlook for easyJet.

It has a well-honed, proven business model. Even if passenger demand does fall temporarily, when it bounces back I reckon the carrier is well-positioned to benefit from it.

Anyway, in its most recent quarter, the company said that “strong late demand for domestics, cities and the Western Mediterranean offset war-related softness in Egypt, Turkey and Cyprus”.

This looks pretty tempting to me

Plus, easyJet has entered the latest challenging period for aviation in good financial shape. It has net cash of £0.5bn with a lot of additional liquidity (like agreed borrowing capacity) it can call on should it need to.

The company has also hedged 70% of its summer fuel needs, meaning that even if prices go up it will not pay more for that percentage of its fuel needs. Still, costs could potentially soar on the unhedged 30% depending on what ongoing Middle Eastern uncertainty means for the oil market.

From a long-term perspective, I feel confident the carrier can ride the current storm. In fact I think its current price undervalues the long-term potential and could end up looking like a deep bargain a year or two from now.

I’m watching, but not in a hurry

Still, I am hesitant.

Airlines can often look like terrific bargains when the chips are down – but they may still turn out to be horrible investments.

There are some simple reasons for that: passenger demand and fuel costs are often outside airlines’ control, even though they can hedge their fuel costs in the short term. The industry is competitive and complex. Running costs are high, even when planes are not well-utilised.

I am going to wait a bit and try to get a firmer idea of whether the current short-term challenges for easyJet and its peers look set to end soon, or develop into more enduring problems.

Cheap though easyJet shares look, I am not ready to buy any just yet.

The post easyJet shares have bounced back before. On a P/E ratio of 6, could they do it again? appeared first on The Motley Fool UK.

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C Ruane 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

One concern a lot of investors have is about the impact of inflation on their passive income streams. Even when a company grows its dividend per share each year, if that growth is not as strong as inflation, its value in real terms could fall over time. That helps explain why National Grid (LSE: NG) attracts some loyal private investors. The FTSE 100 power network operator aims to grow its dividend per share annually in line with a leading measure of inflation – or even more.

Could that make it the sort of passive income generator I would like to have in my portfolio as a way to try and mitigate the potentially harmful impact of inflation on my dividend income?

This business has some compelling characteristics

Before getting into the dividend, let me explain why I like the National Grid business.

People need power and, over time, consumption looks set to grow, not decline. Moving power from where it is generated to the point of use will therefore continue to be big business.

Not only is it big business, but it is also one that is costly and difficult to get into. The sort of networks that National Grid has built over decades are impossible to replicate in many cases. Even if a rival could do so, it would likely be prohibitively expensive.

That gives National Grid strong pricing power – potentially so much, in fact, that the government regulates many of its prices. That can be seen as bad for profit potential, but it does help provide some transparency about possible future pricing levels.

But there’s something I don’t like about National Grid

So far, so good.

However, while the company has a lot of strengths, its chosen area of business also exposes it to a significant challenge. That is keeping the network operational and fit for purpose.

That is not just about sending a couple of engineers out in vans on a stormy night (important though that can be). It also involves the enormous task of maintaining and reshaping the grid to meet changing patterns of energy generation and consumption.

Such infrastructural work is expensive.

How expensive? Put it this way: in the first half of its current financial year alone, the company spent £5bn on capital investment.

That is a lot of money even for a business with a market capitalization of £63bn. Indeed, ongoing capital expenditure helps to explain why National Grid has amassed a net debt of £42bn.

The dividend has been cut before – and could be again

So what, you may ask.

National Grid’s high ongoing revenue generation potential could surely help fund such capex requirements?

In reality, the funding is an issue. Revenue in the first half was £7bn. So that £5bn of capex is substantial.

It makes sense that a power network operator spends a lot of money on maintaining and updating the network. However, National Grid has other things it needs to fund too, from paying interest on that large debt pile to employee wages.

A dividend cut could be one solution to its spending needs and indeed, it already reduced the dividend per share last year despite its stated aim of growth.

I fear that could happen again in future, so I have no plans to invest.

The post Could National Grid shares offer me a dividend that won’t be hurt by inflation? appeared first on The Motley Fool UK.

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C Ruane has no position in any of the shares mentioned. The Motley Fool UK has recommended National Grid 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

Ever wondered just what sort of damage a stock market crash could wreak on your portfolio?

The usual definition of a crash is a 20% or more fall in value in a short timeframe. So a portfolio worth £1,000 could soon fall to a valuation of £800 – or lower.

But, as a long-term investor, just looking at the short-term ebbs and flows of the market does not interest me much. What is the bigger picture?

Learning from history

Let’s take a step back and consider a couple of the most recent stock market crashes.

One was the pandemic crash in 2020. Since then, the FTSE 100 is up 98%.

Before that came the financial crisis. From its low point in 2009, the FTSE 100 has risen 177%.

On top of that, investors in the index have been earning dividends along the way.

The current yield is 2.9%, but investors who bought during market slumps would be earning a higher yield even to this day if they held their shares. That is because yield is a function of dividends — and what an investor paid for the shares in question.

History does not necessarily repeat itself. But a key insight here is that, although the stock market suffered these crashes, it more than bounced back in the years that followed.

Is the big picture misleading?

Of course, focusing on the blue-chip index may not tell the whole story. After all, not all shares fare equally well during a stock market crash. Some may go to the wall altogether.

But the long-term performance data does point to some important truths.

The index rose considerably over time from the lows it hit during those crashes. It also ultimately rose above where it stood before them.

So, even if someone put £1,000 in before the crash and then saw their investment value crumble as markets tumbled (by almost 40% in 2009 and 30% in 2020), if they had been willing to hold on for recovery they would have seen their portfolio get back to where it had been when they invested – and later surpass it. This year has seen the FTSE 100 hit an all-time high.

This matters now, as always

That is a useful lesson when it comes to the value of taking a long-term approach to investing.

Nobody knows when the stock market will next crash. But I believe that no matter how bad that crash, over time a properly diversified portfolio of carefully chosen blue-chip shares ought to recover.

One share worth considering

One share I think investors eyeing market turbulence ought to consider for its long-term potential is M&G (LSE: MNG).

In 2020, the M&G share price fell several times to around £1.10. It is now close to £3 – and still yields 6.9%.

So an investor who bought back in March 2020 could now be earning a dividend yield of around 19%. Wow!

There were risks then, as now. As a financial services firm, M&G might see investors pull money from its funds if the market tanks. That could hurt earnings.

But with its strong brand in the asset management market, large customer base across multiple markets and deep expertise in the financial markets, I believe M&G has ongoing potential for the long term.

The post Here’s what happened to £1,000 invested in the past 2 stock market crashes appeared first on The Motley Fool UK.

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C Ruane has no position in any of the shares mentioned. The Motley Fool UK has recommended M&g 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

The HSBC (LSE: HSBA) share price last week hit a record high of 1,398p, capping a stunning run for one of Britain’s biggest banks.

Over the past year the shares are up 73.5%, and they’ve surged about 220% over five years.

What’s driving the growth?

That kind of climb usually means something’s gone very right. Investors seem to have warmed to HSBC after a long spell when the bank felt out of favour.

Key factors driving growth include:

• Growing focus on Asia.
• Rising interest income.
• Hefty share buybacks.

The recent numbers help explain the excitement.

Revenue’s actually down 9.97% year on year, but net margins are still a healthy 20.57%, showing the bank’s turning a good chunk of what it brings in into profit.

The dividend yield sits at 4.12%, which is appealing versus cash savings, even if it’s only mildly higher than the UK average. But valuation is where it might raise a few eyebrows. Its price-to-earnings ratio of 14.95 is the highest among the big FTSE 100 banks, which tells us a lot of optimism is already baked into the price.

That’s in sharp contrast to more domestic UK banks that often trade on single‑digit multiples. It reflects how the market sees HSBC as a higher‑quality, global operator rather than a plain‑vanilla high street lender.

Risks on the radar

The strong numbers mask potential trouble behind closed doors. Recently, head of banking in Europe and the Americas, Gerry Keefe, resigned – another senior departure after a major restructuring. Leadership changes at that level can slow decisions and unsettle staff, even with an interim boss in place.

On top of that, it faces more risk from the Middle East than most European rivals. Here are some analyst estimates for HSBC’s exposure in the region:

• Roughly 4% of revenue.
• Up to 9% of profit before tax.
• Around 2% of the loan book.

Amid the current conflict, that adds an extra layer of geopolitical risk – even if most clients are large, highly-rated companies.

So what are the professionals saying? 

What the experts think

Analyst coverage is broadly positive but cautious. Recent data shows a mix of Buy and Hold ratings, with only a few Sells. Some brokers think the shares have run ahead of themselves, noting that average 12‑month price targets sit below the current level. 

Meanwhile, others think earnings upgrades and strong capital returns could push the price higher. Commentators have even floated the idea of the stock hitting 2,000p if momentum continues, though that would mean another big leg up from here.

Is HSBC a long-term buy?

For UK investors, the bottom line is simple: HSBC continues to offer appeal as an income‑paying global bank, but it’s no longer obviously cheap. Anyone buying today is paying up for quality, growth in Asia, and chunky dividends.

All the while, accepting the usual banking risks plus extra exposure to the Middle East.

For long‑term investors who can handle some ups and downs, it’s still deserving of consideration in a diversified ISA portfolio. But it probably belongs as one piece of the puzzle rather than the whole picture.

The post Here’s how the HSBC share price reached an all-time high… and what might be next appeared first on The Motley Fool UK.

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HSBC Holdings is an advertising partner of Motley Fool Money. Mark Hartley has positions in HSBC Holdings. The Motley Fool UK has recommended 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.

Motley Fool UK 2026

Diageo (LSE: DGE) shares are a reminder that even the biggest FTSE 100 names can take a beating. But they can also bounce back. For the last couple of years, the drinks giant has looked like one of the most compelling recovery plays on the index. Is its long-awaited comeback about to begin?

For years, Diageo looked like a no-brainer buy, with an enviable portfolio of global brands, including Johnnie Walker, Baileys, Smirnoff, Tanqueray and Guinness. It boasts huge diversification too, selling more than 200 brands across 180 countries.

That worked brilliantly, until it didn’t. The shares were hit by a profit warning in November 2023, triggered by falling sales in Latin America and the Caribbean, compounded by inventory issues.

Big FTSE 100 faller

Rather than a blip, it proved a warning shot. Other markets struggled too, as inflation surged and consumers traded down from Diageo’s premium and ultra-premium brands, or simply cut back. It’s also been hit by one-offs as US tariffs hit exports of Canadian whisky and its key Mexican tequila brand Don Julio. There are structural concerns too: younger people appear to be drinking less, while GLP-1 weight-loss drugs were seen as denting demand further. In short, it’s been under fire on all fronts.

The scale of the task called for ‘Drastic’ Dave Lewis, best known for turning around Tesco in its darkest hour. Sir Dave took over in January amid high investor hopes. However, these were dented on 25 February when he reported falling sales in North America and Asia Pacific, a $200m drop in free cash flow to $1.5bn, and stubbornly high net debt of $21.7bn.

Markets should have expected this. At Tesco, Lewis used the classic ‘kitchen sink’ approach, where a new CEO gets all the bad news out early, resets expectations, and create a lower base for recovery. He also halved Diageo’s dividend. That was a blow to long-term investors like me, but should free up around $1bn to help tackle that debt.

Lewis is doing what we’d expect: accelerating the $625m cost-cutting plan, simplifying management and selling non-core brands to raise cash. He’s also rebalancing the portfolio towards more affordable options and using AI to cut marketing spend. There’s less he can do about generational shifts in drinking habits or the potential impact of weight-loss drugs. But his track record suggests he’ll act decisively where he can.

Should I buy this stock today?

The share price has plunged 27% over one year and almost 55% over five. Given that horror show, the forward price-to-earnings ratio of 13.4 could have been even lower. Ignore any websites showing a yield of 5.2%. It’s now half that.

It’s still early days in the Lewis era. It took around 18 months before Tesco shares responded to his efforts. Diageo is one of the worst performers in my SIPP. But hope springs eternal and I still think its shares are worth considering today. We may get a better idea when the Q3 trading update lands on 6 May. That date is in my diary.

I still see Diageo as one of the more intriguing recovery plays on the FTSE 100. Darkest before the dawn and all that. But given recent stock market volatility, there are plenty of alternatives to consider too.

The post Investors tempted by beaten-down Diageo shares should mark 6 May on their calendars now appeared first on The Motley Fool UK.

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Harvey Jones has positions in Diageo Plc. The Motley Fool UK has recommended Diageo Plc and Tesco 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

Taylor Wimpey (LSE: TW) shares have been in terrible form for a while. Anyone who bought 12 months ago and kept the faith would be looking at a paper loss of over 20%. Those who loaded up five years ago will have seen their stake more than halve in value.

Based on this performance, I’m not surprised if new investors are reluctant to get involved. But are we getting to a point where they might be considered a bargain?

Serious headwinds

It’s not an accident that the UK housebuilder is out of favour with the market. The last five years haven’t exactly been plain-sailing for our economy. We’ve gone from the shock of the pandemic to a cost-of-living crisis to concerns over armed conflict in Europe and the Middle East. All of these developments had or are having an impact on interest rates, building costs and, ultimately, buyer appetite.

Recent results don’t exactly inspire confidence. Back in March, the £3bn cap forecast lower profit for 2026. Somewhere in the region of £400m is now expected. This is down from the £420.6m delivered in 2025.

Of course, this was just an estimate at the time. But I’m not sure the firm’s outlook has improved since. A swift end to the Iran-US conflict looks increasingly unlikely, meaning that oil and energy prices are likely to remain high. This hardly bodes well for the next trading statement, due on 28 April. It might also help to explain why the High Wycombe-based business is proving fairly popular among short sellers.

But is it absurd to even contemplate adding it to a stock market shopping list?

It’s not all bad

I’m not so sure. As things stand, Taylor Wimpey shares change hands at a price-to-earnings (P/E) ratio of 11. That’s not dirt cheap but nor does it imply that the market is ignoring recent events. Rival Persimmon trades on a similar valuation. Barratt Redrow is very slightly less expensive.

The forecast dividend yield of 8.8% further sweetens the investment case. For comparison, the FTSE 250 index in which the company features yields 3.3%.

Yes, those cash distributions are never nailed on and signs of a further deterioration in trading could force CEO Jennie Daly to make another cut. Right now, it’s anticipated that the total dividend will barely be covered by anticipated profit.

Cut or not, whatever is received could still be regarded as sufficient compensation for being asked to wait for a recovery. Moreover, Taylor Wimpey doesn’t look financially stressed as things stand. It’s balance sheet still boasted a net cash position at the end of the last financial year.

Taylor Wimpey shares are worth considering

Things have been torrid for holders and, barring news of a proper peace deal, could stay that way. However, the long-term tailwinds remain in place. Put simply, the UK requires more quality homes to be built. As one of the biggest players, I struggle to believe this company won’t play a role in meeting that demand.

My view is that this is a business that’s under pressure; but it’s not broken. The best time to ponder buying a cyclical stock is surely when the economic chips are down. As such, I reckon the shares are worthy of a closer look.

The post Are Taylor Wimpey shares just too cheap to ignore? appeared first on The Motley Fool UK.

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Paul Summers has no position in any of the shares mentioned. The Motley Fool UK has recommended Barratt Redrow and Persimmon 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

The new tax year is with us, which means plenty of folks will be looking at their Stocks and Shares ISA to work towards their passive income goals. One question that might be on minds is: how to achieve a relatively small income stream of £50 a month in the ISA? And will the full £20k (the yearly maximum deposit) be needed to achieve that figure? Let’s answer both questions.

Methods

One popular method of building passive income through an ISA is to target high-yielding dividend stocks. The best of these stocks deliver cash on a regular basis from the earnings of the company. And because they’re paid directly, the income is truly passive. All that’s required is logging into the app once a quarter or two and the money will have been deposited automatically.

What’s a realistic return from such stocks? In the first year, it’s best not to count on much more than 5%. Most stocks pay less than that. And the ones that pay more come with risks. For example, it’s rare to see a stock get near 10% without a dividend cut or a share price increase to cancel it out.

Let’s go back to that £50 a month target (equal to £600 a year). With a 5% return from dividends, an investor would need to invest £12,000 into the ISA to achieve it. That’s some way under the £20,000 deposit limit too. Although savvy investors will know that there’s a lot more to investing than the very first year.

By choosing a stock with a growing dividend and by reinvesting the dividends received, the passive income could grow over the years. With a dividend growth rate of 5% for example, by year five, the passive income is £86 a month and by year 10 the income is £157 a month. While dividends are never guaranteed, this is how people can work towards turning their passive income into a true second income.

Which stocks might fit the bill?

Is this stock worth a look?

I think Aviva (LSE: AV.) is one worth considering. The insurance giant has a dividend yield of 6.1%, which has been growing at an average of 6.57% a year for the last decade. That’s above the FTSE 100 average on both counts. The share price has been rising in recent years too.

The other side of investing in dividend stocks for passive income is never guaranteed. Aviva cancelled the dividend during the pandemic at the height of the panic. That turned out to be more a temporary blip than lasting crisis, but you never know what’s around the corner. A big crisis hitting the UK economy would affect stocks of all stripes.

On balance? Investing for dividends through a Stocks and Shares ISA is an important step in building wealth. While no one can say what the future has in store, there will always be some stocks that outperform the average. I believe Aviva could be worth further research for that reason.

The post Here’s how to target a £50 monthly passive income in a Stocks and Shares ISA appeared first on The Motley Fool UK.

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John Fieldsend has positions in Aviva Plc. 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

The road however, has been far from smooth, with the stock up just 17.5% in five years. This shows how far it fell — 46% in 2022 alone — when interest rates jumped.

To be fair, Scottish Mortgage does warn investors that progress is not linear. Its aim is to invest in outlier growth companies that can deliver multibagger returns over the long run, and these can be notoriously volatile.

[Our] investing style comes with a tolerance for volatility as progress is rarely in a straight line. We are extremely comfortable with the fact that the biggest outliers are often the most volatile.

Scottish Mortgage.

What are outliers?

Companies like Amazon, Nvidia and Apple have compounded at growth rates that dwarf the average annual stock market return. Research shows a relatively small handful of these outliers have accounted for the majority of the market’s total wealth creation.

Therefore, Scottish Mortgage aims to “exploit the asymmetric pay-off structure of equities: uncapped upside yet bounded downside”. In other words, the most that can be lost on a stock is 100% (assuming debt isn’t used), but the potential gains are theoretically uncapped.

Below, we can see this strategy in action, with a handful of large winners offsetting the losers easily. 

Why’s the stock surging?

As we can see, the biggest winners so far have been Nvidia, Tesla, SpaceX, ASML, Spotify, and Wise. The Nvidia holding’s delivered an astonishing 132-fold return!

Note, three of these were private companies when Scottish Mortgage first invested (Spotify, Wise, and SpaceX). And it’s the latter — Elon Musk’s rocket and satellite company — which has really driven the stock up sharply in recent months.

If Musk gets his way, the firm could raise $75bn at a whopping valuation of $1.75trn. As such, the trust has updated its valuation of SpaceX to reflect this potential. It now represents 19.3% of assets.

Still worth a look?

For much of the past three years, Scottish Mortgage has traded at a significant discount to its net asset value (NAV). During this time, many writers here at The Motley Fool have been banging the drum for the discounted stock. So it’s nice to see it flying recently.

However, the NAV discount has turned into a 4.4% premium. And there’s always a risk the discount returns, especially if there’s a tech sector meltdown.

Plus, the portfolio has 14% of assets in China. Personally, I think China carries as much political risk as potential reward. However, many innovative companies are emerging out of the world’s second-largest economy, so it arguably deserves some exposure.

Is Scottish Mortgage still worth considering around 1,420p per share? I think so, assuming an investor has a long-term holding period and is willing to stomach the inevitable ups and downs (and ideally look to add on any significant dips).

Looking ahead, I’m bullish on the portfolio, which holds multiple world-class growth companies that could also go public at huge valuations in the next few years. These include AI lab Anthropic, fintech giants Revolut and Stripe, and TikTok owner ByteDance.

The post £7,500 invested in Scottish Mortgage shares 3 years ago is now worth… appeared first on The Motley Fool UK.

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Ben McPoland has positions in Nvidia, Scottish Mortgage Investment Trust Plc, and Wise Plc. The Motley Fool UK has recommended ASML, Amazon, Apple, Nvidia, Tesla, and Wise 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

A number of factors have contributed to the Rolls-Royce (LSE: RR.) share price rising 1,164% over the last five years. But one of the most exciting is the possibility of a once-in-a-generation opportunity to build a fleet of small nuclear power stations (called SMRs or small modular reactors) that could be the energy of the future.

These clean energy power stations are still in their early stages, but good news like signing deals with Great British Energy, and the country of Czechia, has made Rolls-Royce shares look more and more attractive. And there was another brilliant bit of news in this regard just this week.

The details are that government approval has been reached on the building of the first three of these ‘Made in Britain’ SMRs in the UK. The sites on the island of Anglesey in north Wales had already been pencilled in. But now the official go-ahead has been confirmed.

Why is this so important?

More energy

The simple answer is the country needs more energy – who knew!? Joking aside, while developments in renewables have been impressive, we’re still beholden to dirtier but more reliable sources of energy. Big problem.

Nuclear is one possibility to plug this hole. The French, for instance, pay around half of our electricity prices because they have more nuclear. However, the trials and tribulations of building giant power plants like Hinckley C show that we can’t really rely on these massive projects that run over time and over budget.

This is where SMRs come in. They’re easy to build, relatively cheap, and with no fossil fuels needed. The SMRs on Anglesey should provide energy for 3m homes for 60 years. Several dozen more of them and we might have an answer to our ongoing energy crisis. The Rolls-Royce share price would likely have a good old time of it too.

Sounds pretty good, no? But are there any downsides?

A leg-up

The biggest risk here is that this unproven technology may simply be unviable. This type of power station across the world totals just two at present. There are no guarantees that they will be the world’s future energy.

And even if SMRs do go on to be a raving success, Rolls-Royce might not be the prime beneficiary. There are dozens of companies aiming to pull off the same trick, many with quite different types of technology to the FTSE 100 firm. One American firm is Bill Gates-backed and might have the deeper pockets to be the real winner.

I’ll say here that Rolls-Royce does have the advantage of institutional expertise here. The firm has been making these types of reactors for Royal Navy submarines going back to the 1950s. That’s a leg-up over the competition to some degree.

To sum up? It will be years before we know the true impact of SMRs on the Rolls-Royce share price and the energy supply of the UK or world at large. Personally though, I’m optimistic and think the stock is worth considering.

The post Up 1,164%! Here’s how the Rolls-Royce share price might keep surging appeared first on The Motley Fool UK.

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John Fieldsend has positions in Rolls-Royce Plc. 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.

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