There are however, big discounts still on offer. So I don’t think investors should be put off by a rising stock market.

Vistry

I was thinking of buying shares in FTSE 250 housebuilder Vistry (LSE:VTY). But the stock surged 15% on Wednesday (8 April) which is annoying. 

A rising price though, doesn’t automatically mean a stock’s expensive. And I think this is a good illustration of that point. 

The main challenge facing the firm though, is still there. It’s the fact that affordability issues mean its existing inventory isn’t shifting. Like most other builders, the company’s selling these at lower prices. But that isn’t a good thing for margins in the short term.

Fortunately, Vistry’s in a unique position. It operates through partnerships with housing associations, local authorities, and rental agencies. I think these connections are set to be a huge advantage. The UK has just launched a £39bn plan for affordable housing that lasts 10 years.

Vistry’s existing relationships mean a lot of this could come the company’s way. And the current market value is £1.1bn. In my view, that’s still a very attractive equation. So despite the rising share price, I’m still interested in buying. 

Judges Scientific

Unlike a lot of UK shares, Judges Scientific (LSE:JDG) didn’t really move on Wednesday. As a result, the stock still looks cheap to me. 

The scientific instrument firm’s earnings per share are set to fall in 2026, which isn’t a good sign. But it’s worth looking more closely at why. 

One reason is to do with Geotek – its coring subsidiary. Contracts in this business are infrequent and there isn’t one expected in 2026.  Management however, expects roughly three every four years going forward. So that means this year’s earnings will be unusually low. 

Another reason is the situation in the US. The administration’s attempts to research funding had been weighing on demand for scientific instruments. This however, has been shot down by Congress. In fact, it’s been replaced with increases to the National Institutes for Health’s budget. 

Judges Scientific isn’t seeing increased demand yet, but I think it’s coming. And if I’m right, the stock’s a lot cheaper than it looks. I expect 2026 to be a bad year on paper for the business. But I’m expecting a strong rebound thereafter, which is why I think the stock looks cheap.

Time to buy?

The stock market has just had a big boost from easing geopolitical tensions. So investors might think it’s not the time to be buying. My view though, is that this is a mistake. There are still UK stock that look attractive to me, even with prices generally heading higher. 

At times like this, there are two things to remember: higher prices don’t automatically mean stocks are overvalued; and not every stock is the same. A rising market doesn’t mean that everything’s more expensive.

Investors who keep these two points in mind are in a good position to look for potential opportunities. And that’s what I’m doing right now.

The post With share prices rising, is now the time to hold off buying stocks? appeared first on The Motley Fool UK.

In some cases, shares that fell sharply in March are worth a look in April. But some of the most interesting are where investors aren’t paying attention.

Volatility

In times of volatility, investors often look for safety. And that usually means focusing on whatever their highest-conviction ideas are. That’s a natural thing to do. But it can often result in significant discounts in shares that don’t get the attention they deserve. 

When this happens, under-the-radar companies can offer investors unusually good value. These are stocks outside the FTSE 100 or the S&P 500. In the short term, this can result in share prices that fall sharply. But for investors with a long-term perspective, it can create huge opportunities.

That’s what I’m seeing right now. While analysts are focusing on Rolls-Royce and Meta Platforms, other names have started to look attractive.

Judges Scientific

Judges Scientific (LSE:JDG) is a UK growth stock with a £275m market value. The share price is down 12% in the last month. 

I think this is a terrific company facing short-term challenges. Its growth strategy involves acquiring and improving smaller businesses. This can be risky, but Judges Scientific has some unique long-term advantages. It’s highly specialised and focuses on relatively small targets. 

Both of these naturally restrict competition. And this has allowed the firm to do deals at extremely attractive multiples. On top of this, the company has an excellent reputation. A decentralised structure makes them an attractive buyer for anyone looking to sell.

The firm’s sales are still falling. But with Congress striking down cuts to US research funding, I think a recovery might be closer than investors realise.

QXO

QXO (NYSE:QXO) is a US supplier of building materials. But it’s got a lot more going on in terms of growth prospects than this suggests.

The company is targeting $50bn in revenues by 2035. That’s absolutely huge for a company with a current market value of $13bn. 

The plan is to get there through a series of acquisitions. And CEO Brad Jacobs has a record of doing this that isn’t just good – it’s great. QXO announced the acquisition of Kodiak Building Partners in March.

This adds around $2bn in revenues, but it also highlights the big risk. The firm issued around 13m shares in the process. And the potential for ongoing dilution is something investors will need to keep an eye on.

As I see it though, the long-term growth strategy remains firmly intact. So I see the stock falling 21% as a chance to add to my investment.

Growth stocks

It’s no coincidence that the opportunities I’m seeing right now are mostly in growth stocks. In times of stress, investors look for relative certainty. This usually comes from shares in companies that trade at low multiples and have stable cash flows. The trouble is, they don’t usually grow so well.

Both Judges Scientific and QXO come with risks. But I don’t think either business has become worse in the last month – and the share prices are much lower.

The post April opportunities: 2 heavily-discounted stocks to consider buying appeared first on The Motley Fool UK.

A stock market rotation away from software and into materials has already pulled the FTSE 100 to parity with the S&P 500 over the last five years. And there might be more to come.

The Little Red Hen

In the story of The Little Red Hen, none of the title character’s friends wants to help with the work involved in making bread. But they’re interested in eating it.

The story doesn’t end well for them – those who don’t participate when there’s work to be done don’t get to join in with eating the bread. And there’s a lesson here for investors.

Amazon and Microsoft were very popular with investors when their earnings were growing rapidly. But huge artificial intelligence (AI) spending means it’s a different story now.

By contrast, the likes of Antofagasta and Anglo American are in fashion as the materials needed to build data centres are in high demand. That however, is a recent development.

There’s a good case for thinking that Amazon and Microsoft are planting the seeds for some huge cash generation in future. But there’s always a risk those seeds won’t grow.

Equally, it might well not be too late to consider buying Antofagasta and Anglo American. But investors who have been patient with these stocks are now demanding high prices.

Growth prospects

So where can investors look to find opportunities in today’s market? One of the names I’m looking to buy for my portfolio in March is Judges Scientific (LSE:JDG). 

Demand for scientific instruments has fallen away since the end of the pandemic. And the US government’s move to cut back on research funding has taken things down further.

On top of this, the firm has had a recent change of CEO, which might be disruptive to the strategy that has served it so well to date. That’s an important risk to consider.

As a result, investors don’t want to know and the stock now trades at much lower valuation multiples. But there are some very strong signs that a recovery might be on the cards in 2026.

The US Congress has rejected the proposed cuts to the National Institutes of Health. Instead, a $415m increase has been included, removing uncertainty and also boosting funding.

That’s extremely positive for the company’s overall outlook, but the little hen’s bread isn’t starting to show up yet. And that’s why I’m looking to buy it today and wait.

Stock market rotation

I think the established order of the stock market over the last few years is starting to shift. And if I’m right, that could be a very good thing for UK stocks that have been out of favour recently. 

Rather than the stocks that have been climbing recently, I’m looking for those that might be next to move. And the latest developments in the US mean Judges Scientific is on my list.

The post Why UK stocks could be set to outperform appeared first on The Motley Fool UK.

While that’s changed a little bit in recent months, I’m still looking for opportunities to buy UK stocks. And there are a few companies that I’ve got my eye on for the month ahead.

The quality growth stock

Diploma‘s (LSE:DPLM) a FTSE 100 industrial components and equipment distributor. It’s not a stock I own, which is a pity because the company’s grown impressively in recent years. 

A strategy of buying smaller businesses and incorporating them into its network has generated outstanding growth. And it’s also well-protected from artificial intelligence (AI) disruption.

The risk with this approach is that there’s always a chance the firm might overpay for an acquisition. And although the company has an outstanding record – especially in recent years – success is never guaranteed.

The more the company grows though, the more its scale gives it advantages over the competition. The stock trades at a high price-to-earnings (P/E) multiple, but I think it’s worth considering.

The under-the-radar winner

Vistry‘s (LSE:VTY) a FTSE 250 housebuilder. The industry hasn’t been in a good way recently, but the latest £39bn affordable housing programme is set to launch. 

That means local authorities, housing associations, and other providers are going to be looking for builders to partner with on building projects. And this is what Vistry specialises in. 

Partnerships can be complicated and they definitely introduce new risks, but it’s a potential opportunity for a company that has a £2.3bn market value.

This seems to have largely gone unnoticed by investors. I already own Vistry shares in my portfolio, but I’m not averse to adding to my position at the current valuation.

The wildcard

Judges Scientific‘s (LSE:JDG) a scientific instrument company. And the stock has fallen 39% in the last 12 months as weak demand – especially from the US – has been weighing on sales. 

There are strong reasons though, for thinking that this might be set to pick up. The US Congress has rejected the administration’s proposed cuts to research budgets, opting to increase them instead.

To some extent, this highlights the key risk of selling primarily into markets where supply depends on government spending. That’s something that the company doesn’t control and can’t really influence.

Nonetheless, I think the stock is in a really interesting position. While management’s latest guidance was relatively conservative, there are reasons to expect business to pick up in 2026.

Which one to choose?

I like all three stocks, but my favourite is Judges Scientific. I can see strong long-term potential with the added boost of a potential recovery in 2026 for the markets it sells into.

I’m a big fan of Diploma, but I think I’ll get a better opportunity further into the future. And Vistry’s a very worthy candidate, but its long-term prospects just look slightly weaker to me.

That’s why I’m looking to buy Judges Scientific for my own portfolio. But I think all three are well worth considering for investors trying to find opportunities in the current market.

The post 3 UK stocks: which should I buy in March? appeared first on The Motley Fool UK.

Nowadays in the UK, a Junior ISA could be one way for the next Warren Buffett to own shares at such a young age.

But I think investors of all ages can learn a lot from how the multibillionaire started out in the stock market under his own steam.

Buffett’s first move

Warren Buffett bought three shares in what is now CITGO for $38 apiece, so the total was $114.

In reality of course, the total cost was likely greater. Even today, one of the first lessons any investors learn is how stockbroking commissions and other charges can add up.

That was much worse back in the 1940s before online investing, but today it is still worth comparing share-dealing accounts and Stocks and Shares ISAs when hunting for a cost-effective way to invest.

Given the ravages of inflation, $114 back in 1942 is worth roughly $2,383 today. Not bad at all for an 11-year-old schoolboy who had saved up money from a paper round for the purchase.

In fact, I think that is also instructive. Buffett was marshalling his resources and generating cash under his own steam to invest.

Follow good investment principles from day one

At today’s exchange rate (with a far weaker pound than in 1942), $2,383 would be worth around £1,754.

That is plenty of money to avoid one mistake Warren Buffett made with his first investment – a lack of diversification.

Putting all your money into one share without spreading your risk is a schoolboy error. Warren Buffett was indeed a schoolboy when he did it – but the rest of us have no excuse.

Buying great businesses at attractive prices

Early in his career, Buffett was a value investor who was willing to buy into dying businesses as long as the share price looked cheap enough.

He later changed his focus to invest in what he saw as great companies at attractive prices.

Using some Buffett principles, one share I think investors should consider is Judges Scientific (LSE: JDG).

The company has grown through acquisition and owns a range of small and medium-sized instrument manufacturers serving specialist users like scientific labs. In that market, accuracy matters, so customers are willing to pay for quality.

But one challenge lately has been lacklustre demand in the US. I continue to see that and an uneven post-pandemic demand recovery in China as risks.

That helps explain why the share has lost 40% of its value over the past year. Now selling for 31 times earnings, this still looks more expensive than I am normally comfortable paying as an investor.

But I think Judges’ unique assets, pricing power and cash generative business model could help earnings grow handily in coming years.

From a long-term perspective, like the one Warren Buffett takes, I see it as a share to consider.

The post Want to invest with the same amount Warren Buffett spent on his first ever share buy? Here’s how! appeared first on The Motley Fool UK.

Despite strong gains from the FTSE 100 recently, I think some quality stocks have been discarded by the stock market. And that’s where I’m looking for potential buying opportunities. 

Compass Group

In general, I like businesses able to charge customers lower prices than their competitors while still making more money. That’s why Compass Group (LSE:CPG) stands out to me.

The contract catering firm’s size allows it to negotiate better prices from suppliers by ordering in bulk. And it uses this advantage to charge customers less and fend off competition. 

The stock’s down 14% since the start of the year as investors weigh a few risks. One is the threat of anti-obesity medication and another is US hospitals finding themselves under financial pressure.

Importantly though, the company’s competitive advantage is still firmly intact. Nobody’s likely to match its scale any time soon and that’s why I think it’s worth considering at today’s prices.

Rentokil

Rentokil (LSE:RTO) shares fell 7% on Thursday (12 February). The reason is that one of the main risks – the amount of debt on its balance sheet – has become more of an issue.

The firm has a lot of debt after a huge acquisition a couple of years ago. And while it’s actually bringing its debt level down, it’s doing this with cash already borrowed at a higher rate. 

Investors should watch the debt maturities, but I think the business is likely to be one of the most durable around. Pest control isn’t going to be disrupted by AI or anti-obesity drugs.

Rentokil’s big acquisition brought a lot of debt, but it also made it the market leader. That’s a very valuable long-term position to be in, which is why it’s a stock I’m watching closely at the moment.

Judges Scientific

By comparison, Judges Scientific (LSE:JDG) is a tiny operation. But the scientific instrument company is my number-one UK stock for investors to consider at the moment. 

The share price is down 32% in the last 12 months. That’s largely because of weak demand from the US, where funding for scientific research has been under a lot of pressure from the government.

This is entirely out of Judges Scientific’s hands and thus represents a risk. Congress however, recently rejected the administration’s proposals (and increased budgets instead of cutting them). 

That should be a huge boost for the business. And while it isn’t showing up in the share price yet, I think this could be a great time to buy shares in a company with some terrific long-term prospects. 

Beyond Rolls-Royce

Rolls-Royce has been a brilliant stock for investors over the last few years. And the reason’s simple — it’s a quality business, but its shares were trading at a discounted price.

The question for investors is where to find that combination in today’s stock market. And Compass Group, Rentokil, and Judgest Scientific all fit into that category.

I think investors would be wise to give any of them a closer look. While I’m favouring Judges Scientific right now, I see all three as worthy candidates for consideration

The post 3 UK stocks I like more than Rolls-Royce right now appeared first on The Motley Fool UK.

One of these is to think carefully about diversification – a key strategy for limiting risk. In general, it’s a good thing to aim for, but exactly what that means might vary from one person to another.

What’s the point of diversification?

The aim of diversification’s pretty straightforward. The idea is to limit the negative effect of any potential threat on the overall value of a portfolio.

That’s the basic idea, but threats come in different forms. An accounting issue – like the one WH Smith’s recovering from – matters a lot to the company in question but not really to any others.

By contrast, a rise in oil prices can be bad for airlines like easyJet for but good for the likes of BP. Or a political change might create a threat that’s specific to companies in one geographic region.

The point of diversification is to try and make sure that all of your investments aren’t exposed to the same risk. But not every investor should think about this in the same way.

Thinking about risks

Some investments are riskier than others – some companies face existential threats in ways that others don’t. And investors should factor this into their thinking about diversification.

With a stock like Unilever, for example, the risk of bankruptcy is pretty low. At any rate, it might well be lower than it is with a firm like Aston Martin Lagonda, which has gone bankrupt before.

This is worth keeping in mind. In terms of managing threats, something that has a much lower chance of going dramatically wrong can potentially be a larger part of a portfolio.

That means someone with a portfolio of riskier assets naturally needs more stocks than someone who owns shares in more stable businesses. And this is something investors often overlook.

One stock, several businesses

It’s also worth noting that some companies have more than one business. As an example, Judges Scientific (LSE:JDG) consists of around 25 subsidiaries that sell various scientific instruments.

That’s why I’m comfortable with it being one of my largest investments. The company has a degree of inbuilt diversification that limits the effect of challenges to any one of its businesses.

They are however, all located in the same industry. And that means lower research spending is a risk for the firm as a whole – and this is what’s been happening recently in the US.

The stock’s fallen as a result, but the company’s long-term strategy of acquiring businesses and improving them is one that I think has a lot of potential. As a result, it’s staying on my Buy list.

How diversified do you need to be?

There isn’t a single rule for diversification – the best way to approach the question is by thinking about what it’s supposed to be for. It’s about limiting the overall impact of any potential threat.

Investors don’t need to stay away from riskier stocks where the chance of bankruptcy is relatively high. But they do need to think carefully about the shares they own and plan accordingly.

The post How diversified does your Stocks and Shares ISA need to be? appeared first on The Motley Fool UK.

In reality, though, there are two sides to every coin – and that is certainly true for a stock market crash.

For a small investor with the right approach, I think a crash can actually present an opportunity – potentially a lucrative one, the likes of which comes around only once every decade or two.

Psychology really matters here

There was a crash in 2020, throwing up some deep bargains. Before that, it had been over a decade since the 2008 crash as part of the financial crisis.

Given that these events do not happen often, many small investors are not prepared for them. They may never have lived through a crash before.

Even for an old hand in the markets, it can take nerves of steel!

Watching the value of shares you own (perhaps your whole portfolio) go down 10%, then 20%, and so on can be very unsettling.

But it is crucial to recognise your own psychology and stay disciplined in such moments.

In a stock market crash, the paper value of a portfolio can change dramatically and in short order. But an investor is under no obligation to sell.

If they still believe in the investment case for the companies they own and take a long-term approach to investing, they can ride the storm without making irrational choices to sell.

A crash changes the selling price of a company’s shares – but it does not necessarily change the worth of the underlying business.

Here’s how I’m getting ready for a crash

In fact, that throws up an opportunity to buy new shares for a portfolio, potentially at a bargain price.

Doing so can mean buying shares one already owns at a lower price than before. Or it can be using a sudden price fall to scoop up shares in a brilliant business at a cheaper price than previously possible.

Will this opportunity come along in 2026?

Like everyone else, I do not know. Nobody can say with certainty when the next stock market crash will happen.

But we do know there will be one, sooner or later.

Such windows of opportunity for deep bargain hunting can be short-lived.  So I am getting ready now, by making a list of shares I would like to own if I could buy them at the right price.

Here’s one share on my list!

For example, in the past I have owned shares in specialist lab instrument maker Judges Scientific (LSE: JDG).

I do like the business though. Its clients are willing to pay for precision, giving Judges pricing power. Judges has some unique expertise and a world-class reputation.

Judges strikes me as a great business. I would be happy to invest again, if I could do so at what I think is an attractive price.

Judges shares have been getting cheaper lately. In fact the price has fallen 17% since the start of 2026.

A profit warning this week shook investor confidence. The company’s 2026 outlook pointed to multiple risks, including uncertainty about US demand amidst government spending cuts and the likely delay of an expected coring expedition.

Still, at 29 times earnings, the share does not yet look cheap to me.

The post Could a 2026 stock market crash be a once-a-decade opportunity for small investors? appeared first on The Motley Fool UK.

As I write this, however, each one is down (at least) 10% since the start of the week. So is this a chance for me to add to my investments, or has something gone badly wrong?

JD Wetherspoon

JD Wetherspoon issued its trading update for the 25 weeks up to 18 January and despite the fact the share price has been falling in response, I think the business is actually doing well.

The firm opened six new pubs and eight franchised ones. But even aside from this, sales were up 4.7% overall with stronger growth in the second half of the period.

During the Christmas period, JD Wetherspoon achieved like-for-like sales growth of 8.8%. That’s impressive in comparison to the 5.1% (which still isn’t terrible) achieved by the wider pub industry.

The stock fell though, because the risk that investors have been mindful of over the last year or so is starting to materialise. Higher costs for staff and utilities are cutting into profit margins. 

That’s not good and it’s something investors need to keep an eye on. But I think the company has an extremely strong competitive position and it’s in a better position to deal with these than its rivals. 

The reason is that it has a lower cost base that comes from operating at scale and avoiding lease liabilities by owning its pubs outright. That hasn’t changed and I think it’s a key long-term strength. 

Judges Scientific

By contrast, there wasn’t much that was positive about Judges Scientific’s full-year update. Revenues were up, but earnings per share were down and the firm’s outlook for 2026 is very weak. 

The numbers for 2025 don’t look great and even they were boosted by a contract that won’t be repeated in the year ahead. But the company’s big problem has been research funding in the US. 

This highlights the risk of a heavy concentration in an industry that depends on government policy. The latest news on this front, however, has been extremely positive for Judges Scientific.

Congressional appropriators have categorically rejected the administration’s requests for cuts to major research funders. And in some cases, they’ve gone the other way. 

Instead of a 40% cut, the National Institutes of Health is set for an increase. The National Science Foundation is set for a drop, but this is focused on the budget for education, rather than equipment.

Judges Scientific isn’t seeing the positive effects of this yet and that’s why its profit forecast is around 50% below expectations. I think, though, that this is a big sign the firm might be through the worst.

What should I do?

So which stock am I looking to buy? Without wanting to be boring, the answer is a simple one – both. 

The reason I own shares in JD Wetherspoon and Judges Scientific is because I think both have strong competitive positions. And nothing much has changed on this front.

This is what I think matters most with a long-term investment. So I’m seeing both stocks as buying opportunities for my portfolio.

The post 2 of my favourite UK stocks are down 10% in a week! Should I buy more? appeared first on The Motley Fool UK.

Nobody can prevent a stock going down. Fortunately though, this isn’t what Buffett means when it comes to avoiding losses – it’s something else entirely.

The stock market

There are two ways to think about buying shares. One is in terms of owning a stock that can move up and down in price and the other is about being part of the underlying business.

This is the difference between trading and investing. Fundamentally, traders buy shares because they think price is going to go higher – usually in the near future. Investors, by contrast, buy shares because they think the underlying business is going to produce a lot of cash. And this usually takes longer.

That’s not to say traders ignore what the underlying business is doing. A lot of the time, their reason for thinking a stock’s going up is because the company’s earnings are likely to grow.

Equally, investors don’t have to be entirely disinterested in share prices. Buffett’s said before that earnings growth in Coca-Cola has resulted in the stock going higher over time.

In each case though, it’s a means to an end. For traders, the business matters because it affects the share price and for investors – such as Buffett – it’s the other way around. 

How to avoid losing money?

Buffett’s advice means investors should therefore be wary of companies that might lose money over time. And there are lots of ways of doing this. One that investors need to be wary of is attempting to grow through acquisitions. This can result in permanent losses, but there are some things investors can do to minimise this risk. 

A good example is Judges Scientific (LSE:JDG) – a stock I own in my portfolio. The company’s grown significantly by adding other scientific instrument firms to its existing network. 

This kind of business comes with a danger of the kind of losses Buffett says to avoid. Paying too much for a company means spending out cash that can be lost if the deal doesn’t pay off. 

Judges Scientific though, has a couple of ways of limiting this risk. It focuses on acquisition targets that fit within its core specialism and are relatively small compared to its own size.

That helps reduce the risk of making a bad deal. And it’s why the company’s managed to grow is revenues at 12% a year on average over the last five years.

Being a good investor

Avoiding losses is Buffett’s first rule of investing. And the way Judges Scientific plans its acquisitions is a good model for how investors should think about their own investments.

Focusing on its core competence helps limit the risk of making a mistake. In the same way, investors in general should concentrate on businesses they can understand. Equally, focusing on small targets reduces the impact on the firm as a whole if things do go wrong. And this is exactly why ordinary investors should look to build a diversified portfolio.

That’s why I hold the stock. And it’s also why it’s on my list to keep buying.

The post Warren Buffett’s number 1 rule for investing in the stock market appeared first on The Motley Fool UK.