Read on and I’ll tell you why I’m bullish on this pair. 

Buying the dip

First, I added 3i Group (LSE:III) to my portfolio. The FTSE 100 stock is down 35% in six months, even after a mini-revival recently.

3i is a private equity firm that invests in other companies. Over the past 10 years, the group’s annualised total return is a very impressive 22%, despite the crash.

A major driver has been Dutch discount store chain Action. In 2011 when 3i first invested, it had 250 stores across three countries and around €80m in EBITDA. At the end of 2025, it had 3,302 stores in 14 countries and generated more than €2.3bn in underlying profit.

In fact, the investment has been so successful that it now accounts for approximately 73% of 3i’s portfolio. So any growth hiccups at Action are bad news. And that’s what we’ve had in recent months, with weaker-than-expected growth in France, its largest market.  

However, I think the selling has gone too far. It means 3i has swung from trading at a massive premium to its underlying assets to a near-10% discount. It also now carries a 3.3% forward dividend yield. 

Taking advantage of this, long-time CEO Simon Borrows recently bought £8.95m worth of shares, which is obviously noteworthy because he knows the company (and its prospects) inside out.

Finally, it’s worth pointing out that Action sees scope for 4,650 stores. So it’s hardly struggling.  

Fitness boom

The second stock I bought is Applied Nutrition (LSE:APN), the leading sports nutrition and supplements brand. The stock’s up 97% in the past year.

However, it dipped 5% earlier this week after shareholder JD Sports unloaded its entire 9.1% stake. Does JD see trouble brewing? Maybe it’s worried about the inflationary Iran conflict hurting Applied Nutrition’s growth or margins. This is a near-term risk.

Alternatively, perhaps JD just crystallised returns after the stock’s strong run. Either way, I’m not worried because I’m investing for the long term. And the global sports nutrition, health and wellness market is projected to grow to £279bn by 2029, at a compound rate of about 8.1%.

What I like is that Applied Nutrition’s growing globally, with its products selling well in Europe, the Middle East, Latin America, and the US (it has shelf space in Walmart). It’s very innovative, bringing out unique flavours and quickly capitalising on new trends in the fitness and wellness markets. 

Crucially, the brand is very trusted. Customers know what they’re getting is the real deal, which is not always the case when it comes to protein and supplements. 

I buy Applied Nutrition’s protein, creatine, and daily greens supplement (because I don’t eat anywhere near enough vegetables!) But nearly half of customers are female, boosted by Coleen Rooney-branded collagen beauty supplements.  

This year, revenue is expected to surge 31% to £140m. The profitable company is trading at 17.7 times forward earnings, which isn’t very expensive for a quality business with a ton of international growth potential.

I’ll look to build out my position on share price dips over the next year or two. 

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Yet the Footsie‘s still a great place to go shopping for bargain stocks. Some top blue-chip shares still trade cheaply despite strong recent price gains. Other quality shares have also fallen in value, providing great dip-buying possibilities for bargain hunters.

3i Group (LSE:III), Standard Life (LSE:SDLF), and HSBC (LSE:HSBA) are three of my favourite FTSE 100 shares to consider today. Want to know why?

3i Group

3i is an investment company specialising in US private equity. Over the last year, it’s fallen by almost a third in value, meaning its share price is 21% lower than its net asset value (NAV) per share.

The firm’s problem right now is slowing sales at Action, a Dutch discount retailer. This is by far 3i’s largest holding, so you can see the problem. But has the market overreacted? I think so.

Action’s like-for-like sales growth halved in 2025, to 5% from the year before. They could remain under pressure, too, as inflation rises. But the long-term earnings potential here remains vast, spearheaded by the company’s planned move into the US. I think it’s worth serious attention at current prices.

Standard Life

Standard Life’s share price has rocketed 27% over the last 12 months. Yet the financial services provider still offers terrific value based on expected profits and projected dividends.

Its forward price-to-earnings (P/E) ratio is 9.7, and its P/E-to-growth (PEG) multiple is well inside bargain territory of below one (0.3). Meanwhile, its prospective dividend yield is 7.8%, currently the second highest on the FTSE 100.

Without doubt, the risks facing Standard Life are rising as the Iran war continues. The conflict could impact demand for its savings and retirement products if consumers tighten their belts. However, over a longer time horizon, I think the investment case remains intact and is worth considering. In my view, earnings could surge as the UK’s rapidly ageing population supercharges market growth.

HSBC

HSBC shares also provide plenty of bang for your buck. The P/E and PEG ratios for 2026 are ultra-low, at 11.7 and 0.7 respectively. And the dividend yield for this year is 4.5%, trumping the FTSE 100 average around 3%.

Like any retail bank, HSBC faces the threat of poor loan growth and rising impairments as the Iran war boosts inflation and hits growth. On the plus side, a likely rise in interest rates will help margins, though the overall impact could still be negative.

But I still think HSBC, whose share price is up 71% over the last year, could be a brilliant bargain. Why? Its large (and growing) focus on Asia could deliver enormous returns, where wealth and population levels are growing rapidly over time. I don’t think this is reflected in the bank’s rock-bottom valuation.

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But investing can be daunting, particularly in today’s market. The FTSE 100 recently dropped more than 10% from its high, prompted by the Middle East conflict, higher oil prices, and the risk of stickier inflation and interest rates.

The more domestically focused FTSE 250 has been hit even harder as investors worry about the UK economy. It’s exactly the kind of turbulance that tempts people to sell everything and hide in cash.

The Buffett playbook

Buffett’s playbook is very different. He tells investors to “be fearful when others are greedy and greedy when others are fearful“.

In other words, stay calm, ignore the noise, and use the dip to buy quality companies at a discount. He often noted how bad news can be an investor’s friend, making quality stocks available at bargain prices.

Right now, some UK shares look priced for disaster, despite decent fundamentals. 

High earnings, low prices

The private equity giant 3i Group (LSE: III) has grown roughly 469% over the past decade, yet the shares are down close to 30% since last April. Analysts put its forward price‑to‑earnings (P/E) ratio for 2026 at around four times — extremely cheap for a long‑term growth winner.

Crucially, recent numbers don’t point to a business in trouble. In the year to March 2025, it reported a 25% total return on shareholders’ funds and strong growth in net asset value per share. Its main holding, European discount chain Action, continues to grow sales and profits at double‑digit rates.

In fact, 98% of its holdings grew earnings in the 12 months to mid‑2025. So this price drop seems to be more about sentiment and higher rates than any obvious operational issues.

A tough market

Vistry, the UK housebuilder, is another example. One valuation service puts its forward P/E at about 5.3, implying investors are very cautious on future profits. This is despite a solid order book and plans for revenue and volume growth. 

In the same vein, easyJet trades on a forecast P/E of roughly five. But revenue and earnings are expected to recover if oil prices drop and travel demand rebounds.

Both are exposed to macroeconomic risks like higher energy costs and a weaker consumer, but those low multiples suggest a lot of bad news is already priced in.

Of course, nothing is guaranteed. 3i Group is heavily reliant on Action and a concentrated portfolio, so a serious downturn in European consumer spending or a sharp fall in private‑equity valuations could hurt. 

And if rates stay higher for longer or geopolitics worsen, all three shares could remain volatile for some time.

No risk, no reward

Buffett likes passive income because it buys freedom: dividends, interest, and long‑term growth can keep flowing whether you’re at your desk or fast asleep.

Market dips like the current correction can be a rare opportunitiy to build an income stream with strong businesses at low prices.

But it also requires risk management — spreading money across sectors, keeping some defensive shares and cash, and accepting that volatility is normal rather than something to fear.

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The biggest faller has been Barratt Redrow, which has crashed 30.6%. The housebuilder was already enduring a “subdued trading environment” back in February. With inflation rising and rate cuts on hold (or worse), mortgages are probably going to become even less affordable.

Similarly, two other housebuilders have sold off: Berkeley (-20.4%) and Persimmon (-19.2%). Leading property search platform Rightmove (-18.5%) makes an appearance, but it’s also been caught up in the AI-will-destroy-software panic.

Speaking of which, Experian (-22%), Sage (-21.3%), Auto Trader (19.5%), and RELX (-17.5%) also join this list. Investors fear autonomous AI agents could potentially cut out data platforms, or at least make their datasets less valuable.

This is probably unlikely for these four, in my opinion, but investors aren’t waiting around to find out. The technology definitely presents pricing power challenges (as well as opportunities) for some software companies.

Elsewhere, gambling group Entain has slumped 24.7% year to date, with concerns rising about the surging popularity of prediction markets across the pond. Former FTSE 100 peer Flutter Entertainment has crashed 53% in 2026!

Other abandoned names include Metlen Energy & Metals (-24.5%), Intertek (-19.7%), JD Sports Fashion (-16.6%), Pershing Square (16.3%) and private equity specialist ICG (-21.6%).

My favourite

Eagle-eyed readers will have spotted that I’ve only mentioned 14 FTSE 100 stocks. So which is my hidden favourite?

Well, I do like Experian, RELX, and ICG, while still holding shares in Pershing Square and Sage. But I’m going with 3i Group (LSE:III), which has bombed 21% year to date.

Private equity trust 3i has sold off because top holding Action is reporting slowing like-for-like sales. And the Europe-based discount retailer intends to invest up to €400m entering the US market over the next few years.

Both of these things add risk, especially if higher European energy and transport costs put further pressure on margins. However, a bit of perspective is needed here. In 2025, Action achieved net sales of €16bn and EBITDA of €2.37bn, up 16% and 14% year on year respectively.

It also intends to expand to 4,650 stores across Europe, up from 3,302 at the end of 2025. It had €900m in cash and cash equivalents in March and plans to make another dividend payment to shareholders in the coming weeks (including, of course, majority shareholder 3i).

Speaking of dividends, 3i’s forward yield has risen to 3.7%. Combine this with a sizeable 23% discount to net asset value, and I think the stock now deserves close attention.

Finally, it’s worth noting that CEO Simon Borrows bought 350,147 shares last week, for a total value of £8.94m. That’s certainly a head-turning sum.

But that’s not all, because on Monday (30 March) senior partner Peter Wirtz splashed out £584,722 on 25,000 shares. Clearly, these vastly experienced insiders think 3i is significantly undervalued right now.

I agree, and intend to follow them by making 3i my first investment this month. Mind you, it will be inside my Stocks and Shares ISA, so will be a tad lower than £8.9m!

The post 15 FTSE 100 stocks have fallen 15% or more this year. Here’s my favourite appeared first on The Motley Fool UK.

With the outcome of the Iran conflict still uncertain, markets could fall further and shares may get cheaper still. But if we see a swift resolution, even an imperfect one, prices could rebound quickly and the opportunity may disappear.

Investors can take two simple steps to protect themselves. First, drip-feed money into the market rather than investing a large lump sum all at once. Second, invest with a long-term mindset, giving markets time to stabilise and allowing both share price growth and dividend income to compound. In truth, that’s the best approach to buying shares at any time.

Going shopping for shares

Many FTSE 100 stocks look remarkably cheap, measured by their price-to-earnings (P/E) ratios. Insurer and asset manager Legal & General Group has a P/E of just 0.3, while yielding more than 9%. Consumer goods giant Reckitt Benckiser trades on a P/E of only 0.6 and yields 4.25%, far higher than it has for years. Both are established blue-chips. While they have faced challenges recently, today’s ultra-low valuations make them worth considering for long-term investors, in my view.

The bargains don’t stop there. Private equity specialist 3i Group (LSE: III) is usually eye-wateringly expensive, but the recent sell-off has hit the shares hard. This is despite the strength of its biggest holding, European discount retailer Action, which remains very profitable and is now expanding into the US.

Typically, investment trust 3i Group trades at a significant premium to its underlying net asset value. However, with the shares down by a third over the last year, it trades at a massive discount of around 24%.

On Monday (30 March), CEO Simon Borrows bought 350,147 ordinary shares in 3i, spending a striking £8.94m. He clearly believes there’s significant value at current levels.

3i Group is on a big discount

This is the largest holding in my SIPP, so the sell-off has been painful. I’m sticking with 3i because I believe the market reaction has been overdone. The US expansion story is particularly compelling, even if it’s a notoriously difficult market to crack. There are signs of a slowdown in Europe, but the scale of the recent decline looks excessive to me. For brave, growth-focused investors with a long-term outlook, I think 3i Group is worth considering.

There are plenty more attractively valued FTSE 100 names. JD Sports Fashion trades on a P/E of 6.6, International Consolidated Airlines Group trades at 6.8, IG Group at 6.9, NatWest at 9.1, Barclays at 10.1, Imperial Brands at 10.6 and BT Group at 11.5. Here are three more to consider: GSK (11.9), Persimmon (12.1) and Bunzl (12.3) may not be dirt cheap, but they still appear good value in today’s market.

Today, global markets are rising on hopes of some kind of peace deal. Whether that optimism proves justified is anybody’s guess. But if markets continue to recover, today’s bargains may not last. In the short run, nobody knows what will happen next but history shows that buying quality shares at low valuations pays off over time. That’s why, despite the risks, this could be a compelling moment.

The post 10 dirt-cheap shares to consider after the correction appeared first on The Motley Fool UK.

Here are two cheap shares that stand out to me as worth looking at in April.

FTSE 100

After delivering years of market-thrashing returns, 3i Group (LSE:III) stock has suffered two massive drops in six months. The first came in November following the release of 3i’s half-year results, while the second leg down came last week.

Since October, this FTSE 100 stock has crashed 47%, marking one of the worst pullbacks in the private equity firm’s long history.

The reason is slowing growth at Action, the discount retailer that dominates 3i’s portfolio. It expects like-for-like (LFL) sales growth between 4% and 5% this year, which would mirror 2025. Business has been weaker than expected in France, its largest market.

For context, Action’s LFL sales growth was 10.3% the year before. So investors appear worried about this slowdown, as well as the retailer’s intention to invest between €350m and €400m by 2030 to enter the hyper-competitive US market.

3i has swung from trading at a 50% premium to the value of its portfolio to a 24% discount today. Even if Action’s implied valuation falls slightly to reflect slowing growth and US execution risk, I think there’s now an attractive margin of safety here.

If we strip out France, Action’s LFL sales growth was still a healthy 5.8% in the first 12 weeks of 2026. And management sees scope for 4,650 stores across Europe, up from 3,302 in December.

So this should be a more valuable business a few years from now, especially if it keeps attracting more bargain-seeking shoppers as inflation bites across Europe.

Another attractive thing worth mentioning is the income on offer. 3i Group owns 29.2% of 3i Infrastructure, the progressive dividend-paying investment trust from the FTSE 250. After the crash, the forward yield has crept up to around 4%, adding to the investment case.

In December I wrote that I would buy 3i stock if it sold off during a crash. Well, we haven’t had a complete market meltdown, but the stock has cratered 26% since then.

Putting my money where my mouth is, I’m going to invest in April.

FTSE 250

Down 18% since November, the second stock that looks too cheap to me is Frasers Group (LSE:FRAS). This is the sprawling retail group that owns Sports Direct, upmarket Flannels, and Evans Cycles, the UK’s leading specialist bike shop.

Frasers has also accumulated big stakes in ASOS, Mulberry, Debenhams (formerly Boohoo), Hugo Boss, Puma, and others. The danger, of course, is that consumer spending could be about to take another hit due to the war in Iran.

Despite this risk, the stock looks ridiculously cheap at just six times forward earnings, despite Frasers continuing to grow (particularly overseas).

There’s no dividend on offer here, but this frees up cash for Frasers to keep buying shares of retailers that it thinks are in the bargain basement. This includes its own, with £70m of its shares being repurchased between December and April.

Frasers is well managed, solidly profitable, and increasingly geographically diversified. The stock is 75% below City analysts’ current 12-month price target. Taking a long-term view, I think it looks sorely undervalued.

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That’s why I think investors should be actively looking for opportunities right now. And there are plenty of big discounts around. 

Discounted discounts

Anyone waiting for discounted stocks doesn’t need to look past the FTSE 100. Shares in 3i (LSE:III) just fell 19% in a day.

The company is a private equity firm that’s been a huge winner in recent years. But it’s fallen sharply for one key reason. It has a very concentrated portfolio. And its key subsidiary – a discount retailer called Action – had faltered recently. 

Like-for-like sales growth is slowing. The latest update includes a forward expectation guide for between 4% and 5%. That’s a sharp fall from 6.2% in 2025. And it’s a huge decline from the 10% increase the firm reported in 2024.

Private equity

With a publicly-traded company, slowing growth usually gets reflected in its share price. But Action isn’t publicly traded.

This means 3i assigns it a valuation on its balance sheet. And they have the business marked at an EBITDA multiple of 18.5. That’s extremely high for a retail operation. And it might be justified if like-for-like sales growth is going to be close to 10%.

At 4%, however, it looks like a stretch. So the market reflects this in the only way it can, which is by discounting 3i shares.

That’s why the stock fell sharply. But the latest move means investors might be underestimating Action’s growth potential.

Growth potential 

Ordinarily, like-for-like sales growth is a good measure to use in evaluating retailers. But Action is an unusual case.

Most publicly traded retailers are somewhere near saturation. In other words, they’re not opening many more stores. That means changes in like-for-like sales are a good indication of long-term growth. With Action, however, things are different.

The firm has plans to more than double its existing store count. And it also has ambitious US expansion targets from 2027. That won’t be straightforward. But there are still plenty of opportunities across Europe, where it already has a strong presence.

An opportunity

In its latest update, 3i reported that its book value had increased to £30.17 per share. But the current share price is 22% below this.

This means investors who buy the stock today aren’t paying an 18.5 EBITDA multiple for Action. The real multiple is more like 14.5.

Given the retailer’s future growth potential, I don’t think that’s unreasonable at all. And it’s an extremely rare opportunity for investors.

Source: Fiscal.ai

Chances to buy 3i stock at a discount to book value in the last 10 years have been few and far between. But during that time, the share price has climbed 411%.

I think there’s more to come from both Action and 3i. So that’s why I’m looking to add to my investment with the stock down. 

Finding stocks to buy

There’s a lot going on in the stock market right now. But it’s somehow managed to avoid falling into crash territory (so far) in 2026. Despite this, 3i shares are down 27% since the start of January. And regardless of what happens next, that’s enough of an opportunity for me.

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However, in some cases, the sell-off just gives investors an opportunity to buy high-quality growth stocks at discounted levels. Here are two that I like today.

On Holding

The first stock is On Holding (NYSE:ONON). This is the Swiss running shoe and sports clothing brand that has defied the gloomy consumer spending environment, even while charging premium prices.

Between 2020 and 2025, sales surged from the Swiss franc-equivalent of $453m to $3.8bn. Profit margins have also expanded and are now industry-leading due to the firm’s premium pricing power. On’s gross profit margin is 63.9% versus 51.6% for Adidas and 42.7% for Nike.

But are the years of heady growth about to come to an end?

Well, net sales on a constant currency basis are expected to be at least 23% this year. Given the current backdrop, that would normally be considered fantastic for a sports brand. But coming off the back of 35.6% growth last year, this deceleration has disappointed Wall Street.

Beyond slowing growth, there could be some margin pressure this year from increased marketing spend, currency fluctuations, and tariffs.

Meanwhile, in an unexpected change in the C-suite this week, On announced that two co-founders would take over as co-CEOs. So this has created more uncertainty.

The stock’s down 30% year to date. Based on 2027 forecasts, On is now trading at 17.5 times forward earnings, translating into a price-to-earnings-to-growth (PEG) ratio of 0.75. Remember, anything below one is seen as potentially undervalued.

Longer term, I’m still bullish here. On was founded on the “principle of relentless innovation“, and we can see this in its CloudTec cushioned trainers and LightSpray manufacturing process, which makes laceless, robot-sprayed super-trainers in three minutes.

Apparel sales jumped 68.2% last year, but there’s a blue-sky opportunity to sell far more clothes. And On is a rare Western brand enjoying surging sales across Asia Pacific, its fastest-growing region.

Earlier this week, I took advantage of the dip and bought more shares.

3i Group

Turning to the FTSE 100 now, we have private equity firm 3i Group (LSE:III). The share price has fallen off a cliff — down 30% in a month and 47% since October.

The catalyst for this has been Action, the Dutch discount retailer that makes up a whopping 70% or so of 3i’s assets. Not content with its 3,300+ stores across 14 European countries, Action will enter the hyper-competitive US market by the end of 2027 or early 2028.

Now, this expansion will obviously need a fair bit of capital, and isn’t guaranteed to pay off. North American has long been a graveyard for European retailers — ask Tesco and Marks and Spencer.

A few months back, 3i stock was overvalued, trading at a wild premium to its underlying net asset value (NAV) per share. But after crashing back down to earth, it has swung to a double-digit discount.

I think that’s very attractive for this high-quality business, which has a fantastic track record of buying, building, and selling unlisted businesses.

Now carrying a 3.4% dividend yield, the stock’s well worth considering while it’s under 2,400p.

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A crash usually means a fall of 20% or more, so what we’re seeing is uncomfortable, but not unprecedented.

The obvious question is whether this is a short‑term wobble or the start of something nastier.

What’s behind the sell‑off?

Geopolitical risk in the Middle East has sparked a sharp global sell‑off as investors flee to safer assets like cash, gold and government bonds. Oil prices have jumped after disruption around the Strait of Hormuz, which raises fears of higher fuel and transport costs feeding inflation.

Those higher energy prices come just as the Bank of England was hoping to start cutting interest rates. So now markets are worrying that these much-needed lower rates may be delayed. Moreover, the latest round of US tariffs on cars and other imports has added another layer of uncertainty for global trade.

All things considered, a mild correction isn’t surprising. But corrections like this aren’t rare and often recover stronger. The Footsie climbed 13.5% in the year following the most recent 2022 correction.

For long‑term investors able to stomach volatility, they can provide opportunties to pick up quality UK shares at more attractive prices than usual.

One stock on my watchlist

One stock I’ve been watching is 3i Group (LSE: III), an investment company specialising in private equity and infrastructure. Its biggest holding — Europe-based discount retailer Action — has been a key driver of 3i’s strong returns in recent years.

In its latest annual results, net asset value (NAV) per share reached 2,542p and return on equity (ROE) was 25%. At the time, the price was up over 1,800% since it began restructuring in 2012.

But more recent results failed to impress, leading to a 20% dip. Here’s why I think the low price could be a value opportunity worth considering.

An undervalued income play

Using a discounted cash flow (DCF) model, analysts estimate the shares trade at 68% below fair value. This estimate’s supported by a forward price‑to‑earnings (P/E) ratio of just 4.25.

On top of that, the dividend yield’s increased to around 3%, adding income attraction to this traditionally growth-focused stock. Still, it has a 35-year payment track record and last year, the dividend was boosted by 19.7%.

However, it’s worth noting that 3i has a high level of non-cash income. So while the dividend appears well-covered by earnings, cash flow only covers about 50% of payouts.

Besides, as the Middle East conflict rages on, higher rates could hit consumer spending. That means companies like Action could see slower growth and lower valuations. If cash generation lags profits for too long, the dividend may be cut.

Final thoughts

3i Group has long been a favourite of mine and still looks as attractive as ever. It owns a collection of real businesses, has a strong performance record, and now trades on what looks like a bargain price. 

Just remember that buying during a correction doesn’t mean prices can’t fall further in the short term. That’s why diversification matters. Holding a mix of shares from different sectors and regions reduces localised risk, and dividends continue to compound even if growth stagnates.

The post Stock market correction 2026: a rare chance to scoop up cheap UK shares? appeared first on The Motley Fool UK.

But investing at times like these can be the key to earning huge returns. And I think there are some terrific opportunities within the FTSE 100.

A FTSE 100 titan

One of the best examples is 3i (LSE:III). Over the last 10 years, the private equity firm has been one of the FTSE 100’s top performers and it’s easy to see why. 

The company’s book value – the difference between its assets and its liabilities – has grown by 21% a year on average. And it isn’t showing signs of slowing.

Source: Fiscal.ai

A lot of this is due to Action, 3i’s largest investment. The European retailer has grown strongly through a mix of new openings and higher same-store-sales.

As a result, Action makes up more than 70% of 3i’s portfolio. That’s a lot, but it’s not a problem while the business is performing well. 

Iran conflict

As a result of the conflict in Iran, Qatar has halted liquefied natural gas (LNG) production. And that’s a problem for Europe, which imports it.

Higher energy prices are likely to create pressure on household budgets. But that’s bad for Action, which relies on consumer spending for its revenues. 

3i values its stake in Action at an EBITDA multiple of 18.5. That’s not outrageous, but it implies a positive view of the firm’s future growth prospects.

A reputation for low prices should help make Action more resilient. But given how much of 3i’s portfolio it makes up, investors need to take note of the danger.

Stock down 

The risk of LNG-related disruption is real, but I don’t see it as a long-term threat to 3i’s key subsidiary. And I think the discounted share price offsets a lot of this.

Just one month ago, the stock was trading at a price-to-book (P/B) ratio of 1.2. After a 15% decline in the share price, that multiple is now 1.

I think that’s cheap. I started buying the stock at a P/B ratio of 1.2 with a view to the firm growing into its valuation within a year. 

I’m still happy buying it at that level, but I like it even more at today’s prices. Especially with 3i’s long-term competitive advantage intact.

Buying opportunities

3i’s key advantage is that it invests its own capital, instead of funds from clients. And that means it can buy and sell when it chooses, not on fixed timelines.

That gives the company a huge advantage over other private equity firms. And LNG disruption doesn’t make any difference to this. 

In the short term, there’s no rule saying the stock can’t fall further.  It’s traded at a P/B ratio below 1 before and it absolutely could do so again.

From a long-term perspective though, I see the current disruption as an opportunity. And that’s why it’s on my buy list right now.

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