Forget buy-to-let! I’d invest in this FTSE 100 property stock today

first_img Stepan Lavrouk | Wednesday, 12th February, 2020 | More on: LAND Enter Your Email Address Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Image source: Getty Images. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Stepan Lavrouk owns no shares mentioned. The Motley Fool UK has recommended Landsec. 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. “This Stock Could Be Like Buying Amazon in 1997”center_img Forget buy-to-let! I’d invest in this FTSE 100 property stock today Simply click below to discover how you can take advantage of this. When it comes to the property market, almost everyone under the sun seems to have an opinion on it. When it comes to stocks, bonds, commodities, cryptocurrencies, or any other asset class, many non-professionals are often reluctant to get involved, as they perceive the area as difficult to understand. By contrast, most investors claim to have a decent understanding of the property sector. In the UK, the classic adage is that property never goes down in value. While this is not always the case — as house buyers in the UK and Ireland most recently found out to their cost in 2007/08 — this belief has remained remarkably persistent. But that’s understandable as overall, property is an asset class that performs well, assuming it is bought at sensible valuations. This helps to explain the popularity of buy-to-let. 5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Should you buy-to-let?Buy-to-let mortgages are available for prospective landlords and while there are certainly some advantages to this investing strategy, it does come with a number of significant drawbacks. For starters, not everyone can afford to take on a large loan to finance the acquisition of another property. Even if you are in a position where you can finance such a purchase with your own money, you will still face as a landlord. You are responsible for the upkeep of the property, and have legal obligations as the owner. And then there is the question of lack of diversification —  a single property may create the problem of having too many eggs in one basket. What happens if property values in your town go down? For all of these reasons, I believe that real estate investment trusts, or REITs, offer a much better option for investors looking for exposure to the UK property sector. REITs are publicly traded companies that own and operate a portfolio of properties, and that must by law distribute at least 90% of their earnings as dividends to investors. They offer the benefit of diversification at a tiny fraction of the price of a single buy-to-let, and they allow younger investors the chance to enter the property market without having to save up for a mortgage.LandsecShares of commercial property REIT Landsec (LSE:LAND) are currently trading at 972p a share and carry a dividend yield of 4.8%, which is half a point better than the FTSE 100 average of 4.3%. It currently trades at a price-to-book ratio of 0.75, which suggests that it is undervalued relative to the real assets of the business. Landsec owns a number of high-profile commercial and retail properties in London, including the Piccadilly Lights. It also owns many office buildings in the City of London. And I think that if you are planning to invest in the British property sector, your best bet is to go after the most highly sought after locations in Central London. But Landsec’s properties outside of London are also strong. Bluewater in Kent, for instance, is one of the UK’s ‘supermalls’ and not feeling the pain of the retail downturn in the way that some smaller shopping centres are.All in all, it appeals to me so much more than the hassle of being a landlord! I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. See all posts by Stepan Lavrouk Our 6 ‘Best Buys Now’ Shareslast_img read more

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Two accounting tricks you should be aware of

first_img Our 6 ‘Best Buys Now’ Shares Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Accounting is a tricky business. In the UK we have defined accounting policies. But in the US, there are Generally Accepted Accounting Principles, or GAAP. In my opinion, accounting shouldn’t be generally accepted. It should be exact. The more discretion that is allowed in accounting, the more opportunity there is for the numbers to be cooked and fiddled with. 5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…But no matter how exact the accounting laws are, there will always be industrious accountants searching for ways to hide things the company doesn’t want its shareholders to see. Here are two accounting tricks that you should be aware of. Channel stuffingChannel stuffing is the practice of sending retailers more product that the company believes its distribution channel can actually sell. The product is then booked to the profit and loss statement despite the inventory not even being properly sold, which is the “sell-through“. It could also be that the product is returned to the company, meaning adjustments need to be made to the P&L. Many companies will try to stuff their channels right before the end of their results period, in order to meet its targets. This is not too dissimilar to Tesco‘s accounting scandal in 2014. While there are no laws against channel stuffing, the procedure is frowned upon and many investors do not take it positively. There can be legitimate reasons for increasing inventory through the distribution channel if the company genuinely expects sales to be higher and wants its distributors to be prepared, but often the process has been abused by management fearful of taking hits to their execution remuneration, which may depend on certain targets being hit. Capitalising costs Another common trick used by corporate accountants is to convert costs that should go on the P&L into an asset on the balance sheet.For example, let’s say we own a restaurant, and we take in £100,000 of revenue in our first year. Our operational costs are £50,000, meaning we have gross profit of £50,000. However, we also had to spend £20,000 on furnishings and upgrading our restaurant. Usually, that £20,000 would come under capital expenditure, and so we would book it on the P&L or income statement. That would change our gross profit of £50,000 to £30,000 – after we’ve taken off the £20,000 in capital expenditure.But some companies might not put the £20,000 in costs through the P&L, but add the £20,000 in capital expenditure to the balance sheet as an ‘asset’. This has two effects:The real net profit can be misstated due to a real cost that has not been acknowledgedThe the company’s assets are inflated, which strengthens the balance sheet, despite the cost being a necessary part of doing businessBe aware of oil exploration and mining companies classing exploration or drilling fees as assets. They are not.By understanding how these two accounting tricks work, you’ll be better prepared and informed when making investment decisions.  “This Stock Could Be Like Buying Amazon in 1997” Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Image source: Getty Images. Two accounting tricks you should be aware ofcenter_img Michael Taylor | Tuesday, 18th February, 2020 Simply click below to discover how you can take advantage of this. Views expressed 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. Enter Your Email Address I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. See all posts by Michael Taylorlast_img read more

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I’d buy this low-cost stock and its chunky dividends for my ISA right now!

first_img See all posts by Royston Wild In recent days, I’ve explained why Ibstock could be about to furnish the market with some upbeat trading details. The UK’s vast homes shortage creates a fertile outlook for the homebuilders, along with providers of essential components like bricks. The ‘Boris Bounce’ that followed December’s general election has boosted the near-term picture for the construction industry too.Forterra (LSE: FORT) is another share that’s looking good to ride this favourable trading environment. The FTSE 250 brickbuilder was positive-but-restrained in its most recent market update in January. Then it advised that “the challenging market conditions experienced in the second half of 2019 [should] gradually improve.” But it added: “The group’s performance in the first half of 2020 will be below that achieved in the first half of 2019.”5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…It’s quite possible that, given the bounce to the housing market since the start of the year, Forterra will be a little more upbeat when full-year trading results are unpacked on Tuesday, 10 March. And this could provide its share price with renewed strength.A bright outlookCity analysts expect the business to record a 4% earnings decline in 2019. However, they reckon Forterra will bounce back with a modest 2% rise this year. An improved 5% increase is forecasted for 2021 as well.Not only does a robust marketplace, underpinned by a chronic homes shortage and inadequate British brick supplies, look set to support Forterra over the medium-to-long term. The Northamptonshire company can look forward to its new Desford factory coming online too, a move that’ll supercharge brick production in the years ahead.The production line is set to start rolling at its state-of-the-art facility in 2022, becoming Europe’s largest with an annual capacity of 180m bricks. The move will drive group production capacity around 16% higher and allow the company to capitalise on rising homebuilder activity in the new decade. The government seeks to create 300,000 new homes by the middle of the 2020s.In my book, Forterra’s low forward P/E ratio of 13.7 times fails to reflect these bright growth prospects.Above-average dividend yieldsForterra might not be the most exciting income stock and certainly doesn’t offer the biggest dividends yields. Still, yields over the next couple of years outstrip the UK mid-cap average of 3%. For 2020, the reading sits at 3.3% and, for 2021, a yield of 3.5% can be expected.What makes the business such an appealing income share to me is the likelihood of stronger and sustained dividend growth. Forterra boasts the sort of tremendous cash generation that allows it to light a fire under shareholder rewards.Cash from operations leapt 15% year-on-year in the first half of 2019, to £27.6m. This helped the amount of net debt on its books to plummet, to £34.5m from £51.9m. And, as a result, Forterra raised the interim dividend by more than a fifth (21.2% to be exact). Our 6 ‘Best Buys Now’ Shares Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. I’d buy this low-cost stock and its chunky dividends for my ISA right now! Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. “This Stock Could Be Like Buying Amazon in 1997”center_img I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Simply click below to discover how you can take advantage of this. Image source: Getty Images. Enter Your Email Address Royston Wild owns shares in Ibstock. The Motley Fool UK has recommended Ibstock. 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. Royston Wild | Thursday, 27th February, 2020 | More on: FORT last_img read more

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After falling 50% I think this FTSE 100 dividend stock could double

first_img I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Rupert Hargreaves | Saturday, 21st March, 2020 | More on: CCH Enter Your Email Address “This Stock Could Be Like Buying Amazon in 1997” Over the past few weeks, shares in FTSE 100 dividend stock Coca-Cola HBC AG (LSE: CCH) have crumbled by nearly 50%. However, unlike other businesses in the travel and aviation sectors, it doesn’t look as if this company will face a significant decline in activity due to the coronavirus outbreak.As such, now could be an excellent time for long-term investors to snap up a share of this FTSE 100 dividend stock at a bargain price.  5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Defensive investment Coca-Cola HBC is one of the largest bottlers of Coca-Cola products in the world. This makes the business relatively defensive because consumption isn’t particularly sensitive to economic fundamentals. Indeed, between 2007 and 2009, the beginning and height of the financial crisis, Coca-Cola HBC’s output increased from 2,019 cases per year to 2,069. Net sales revenue rose from €6.46bn to €6.54. These numbers suggest the business should be able to weather the current crisis as well. Government policies designed to stop the spread of the virus around the world may have stopped consumers travelling, but they are still allowed to eat and drink. For its part, the company has informed the market that it remains a “strong position as a market leader in the countries where we operate.” Management also believes the group has “a strong balance sheet and adequate liquidity.“Dividend stockThe above suggests Coca-Cola HBC should continue to remain profitable throughout the outbreak. This income should continue to support the group’s dividend yield. Further, the company is highly cash generative, which is why I ‘ve highlighted its dividend potential on numerous occasions. Last year, the company generated free cash flow from operations of $450m. That was more than double its regular dividend cost of $200m. Management also announced a special dividend of €2 a share, reflecting “successive years of strong performance.“The good news is that, after recent declines, shares in this FTSE 100 dividend stock now offer a dividend yield of 4.1%. Considering the safety of this distribution, that level of income looks highly attractive in the current environment. The group also has a history of increasing its dividend at an inflation-busting rate. Over the past six years, the dividend has grown at a compound annual rate of 11.5% — roughly in line with earnings growth over the same period. This excludes the special dividend.  These numbers hint the dividend stock could increase its payout next year as well, considering its defensive nature. What’s more, the stock is now trading at a price-to-earnings (P/E) ratio of 10.3.Considering the stability of the group’s earnings, it looks as if this is a price worth paying for the business. It also suggests the stock offers a margin of safety at current levels. The bottom line So, all in all, it looks as if shares in Coca-Cola HBS have been oversold during the past few weeks. Its income stream is unlikely to be interrupted by coronavirus and, with its healthy cash flows, the dividend looks safe. Therefore, now could be an excellent time to buy this dividend stock while it’s on offer.  I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Simply click below to discover how you can take advantage of this. Rupert Hargreaves owns no share 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.center_img Our 6 ‘Best Buys Now’ Shares Image source: Getty Images Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. After falling 50% I think this FTSE 100 dividend stock could double Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! See all posts by Rupert Hargreaveslast_img read more

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How I’d invest if I only had £1,000 right now

first_img I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Roland Head | Saturday, 8th August, 2020 | More on: MRC I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Image source: Getty Images. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! How I’d invest if I only had £1,000 right now Our 6 ‘Best Buys Now’ Shares Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee.center_img Roland Head 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. When you’re just starting to invest, it’s not easy to decide how to spend your cash. The good news is there are several simple and cheap options which I think will provide good results over many years. Here, I’m going to take a look at how I’d invest £1,000 today.Why the stock market?At the Fool, we believe stock market investments generally provide the best long-term results. As I’ll explain, even a relatively small amount of cash, such as £1,000, is enough to give you broad exposure to different types of business, plus a regular income.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…You can also keep stock market investments in a Stocks and Shares ISA, avoiding any future tax bills. That simply isn’t true with most other asset classes, such as property or gold.How to invest #1: buy shares directlyThe most obvious way to invest in the stock market is to buy shares in one or more companies. But with a budget of £1,000, I don’t think this is a good choice.To avoid losing too much in dealing charges, the absolute minimum I’d invest in a single stock is £500. On a budget of £1,000, that means a maximum portfolio of two stocks. In my view, this isn’t a good idea. It means that all your eggs are in one (or two) baskets.If something goes wrong, you could easily lose a quarter of your investment in one day. And even if the market rises, you may not be exposed to winning sectors.How to invest #2: buy an index trackerA more sensible choice would be buy an index tracker fund. These cheap, simple passive funds simply follow the performance of a major stock market index. My choice would be a FTSE 100 tracker fund.At current levels, this should provide a dividend yield of about 3.5%, even after this year’s widespread dividend cuts. Over time, I’d expect this payout to rise steadily. And, in my view, the index is quite attractively priced at around 6,000, so I’d also expect capital gains over time.However, that’s not actually how I’d invest £1,000 today. Let me explain what I’d really do.What I’d buy todayIf I was investing that sum today, I’d buy shares in an investment trust. These unfashionable vehicles are sometimes overlooked but, in my view, they’re a great tool for long-term investors.One particular attraction is that they’re allowed to hold back some of the income they generate each year. This can be used to ‘smooth’ out dividend payments in future years, protecting shareholders (you and me) from cuts.There are hundreds of trusts to choose from on the London market, but the one I’d buy today for a starter portfolio would probably be the Mercantile Investment Trust (LSE: MRC). Founded in 1884, this trust invests in mid-sized companies which the trust’s managers think will do well in the future.Mercantile’s strategy has worked well in recent years — shares in the trust have doubled over the last 10 years. The FTSE 100 has risen by just 10% over the same period.The Mercantile Investment Trust currently offers a dividend yield of around 3.4% and the shares trade at a discount of around 5% to their book value. I think that now could be a good time to buy. Enter Your Email Address Simply click below to discover how you can take advantage of this. “This Stock Could Be Like Buying Amazon in 1997” See all posts by Roland Headlast_img read more

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No savings at 40? Following Warren Buffett’s tips could still help you retire early

Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Our 6 ‘Best Buys Now’ Shares 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. No savings at 40? Following Warren Buffett’s tips could still help you retire early “This Stock Could Be Like Buying Amazon in 1997” Image source: Getty Images. Simply click below to discover how you can take advantage of this. Nowadays it’s normal to reach 40 years of age and realise you’ve no savings and are more than likely saddled with debt in the form of a mortgage or car loan. You may have children to pay for and what seem like endless living costs. How can you possibly start thinking about retirement, let alone early retirement? Well, the good news is, you can, because even at 40, it’s not too late to plan your future wealth and aim to retire early.Boost your State PensionIt’s now well known that the State Pension is not enough to live on comfortably, so planning to supplement it with an additional income stream is a wise move. One such way is through dividend income, which you can achieve by regularly investing in a long-term portfolio through a Stocks and Shares ISA or Self-invested Personal Pension (SIPP).5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Either of these is a great way to introduce you to investing, and with time you can build a substantial nest egg. You can invest a maximum of £20k a year in a Stocks and Shares ISA and it’s free from tax, even on any gains. A SIPP works in a similar way but you can pay in 100% of your annual earnings before tax, up to a limit of £40k for 2020–21. If you don’t work, you can contribute up to £3,600. A SIPP also offers tax relief so it can be a great way to save enough to retire early.  As it’s tailored to be your pension, you can’t withdraw from it until you’re 55.How do I invest for a comfortable retirement?   If you know little about investing, the easiest way to start is by buying funds. This is arguably the least risky way to invest in the stock market. Rather than buying shares of individual businesses, you buy a fund which contains several. These funds can cover sectors, financial indexes, or specific types of investment.If you’re slightly more confident in your investing strategy, you can buy shares in individual companies and store them in your ISA or SIPP. Through these investment vehicles you can also invest in unit trusts, exchange-traded funds (ETFs), investment trusts, government or corporate bonds, cash and even commercial property.Follow Warren Buffett’s leadBillionaire investor Warren Buffett has accumulated billions of dollars over the years through the power of compound investing. This is when his investment accrues interest and the interest accrues interest, rapidly compounding the initial sum. The best way to achieve this is with dividends. Some stocks offer dividends, which act like interest and can be reinvested, creating the compounding effect.Another of Buffett’s tips is “Invest in what you know“, which means choosing companies or funds you understand, so you can have confidence in your actions.By investing £500 a month for 20 years, at an effective annual rate of 12.68%, you’ll end up with £505,020 when you’re 60. If you’re not looking to retire early and would rather contribute a lesser amount, £250 a month for 30 years will create a sum of £891,465 when you’re 70. Varying the period of investment, the interest rate, and the amount invested will all affect your final sum. It sounds daunting, but it’s not, and the rewards can be considerable. So don’t put it off. Follow Warren Buffett’s advice and start your investing journey today. Your future self will thank you! Kirsteen Mackay | Sunday, 4th October, 2020 Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Enter Your Email Address I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. See all posts by Kirsteen Mackay read more

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2 top UK shares I’d buy in my Stocks and Shares ISA for next week!

first_img I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Royston Wild | Sunday, 6th December, 2020 | More on: AHT IMO Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Simply click below to discover how you can take advantage of this. Image source: Getty Images 2 top UK shares I’d buy in my Stocks and Shares ISA for next week! “This Stock Could Be Like Buying Amazon in 1997” These two UK shares are all set to update the market in December. I’d buy them in my Stocks and Shares ISA today and this is why.Mobile madnessDemand for IMImobile’s (LSE: IMO) shares ballooned during late summer and early autumn but has trended lower more recently. I’d use recent share price weakness as an opportunity to engage in some choice dip buying. And particularly with the UK share’s next financial update around the corner. Results for the six months to September are scheduled for Monday, 7 December.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…IMImobile is an expert in the field of cloud communications software and mobile messaging. This puts it in great shape to ride the twin themes of rising flexible working following the Covid-19 pandemic and the rise of the mobile phone. The IT giant allows blue chips in a broad range of sectors from Barclays and Hermes, to nPower and GlaxoSmithKline, to keep in touch with customers through their handsets.Back in September IMImobile said that it had enjoyed “continued momentum across our core sectors” since its update of early July. It added that volumes and activity within sectors hit hardest by Covid-19 like retail and healthcare had also shown “significant recovery”. This all bodes well for that upcoming trading statement next week, clearly. Some significant share price gains could be just around the corner.Another UK share I’d buy in my ISAFor a firm with classically cyclical operations Ashtead Group’s (LSE: AHT) share price performance has been phenomenal. By early summer it erased all of the share price falls endured during the stock market crash of late February and early March. And just this week it rose to its most expensive ever above £32 per share.Rental equipment supplier Ashtead — which provides hardware on construction sites, at entertainment events, for facilities maintenance and for emergency response — has naturally seen revenues slip amid Covid-19 lockdowns in 2020. Still, the market has been encouraged by the FTSE 100 company’s resilience in a challenging year.The company said in September that, assuming there were no additional waves of Covid-19 leading to market shutdowns, revenues on a constant currency basis would only be down by “mid to high single digits” for the financial year ending April 2021.There was more good news to come too. The pandemic has caused balance sheets to come under severe pressure. Ashtead said that its leverage fell to 1.8 times in the first fiscal quarter from 1.9 times a year earlier. Record free cash flow for the May to July period drove this improvement.Clearly the outlook for the North American construction market, an arena from which Ashtead generates almost all profits, remains uncertain. But it looks like the FTSE 100 business is past the worst that Covid-19 can throw up. I’m expecting another positive set of trading numbers when second-quarter financials are released on Tuesday, 8 December. I already own this UK share in my ISA and am tempted to buy more ahead of that release.center_img Royston Wild owns shares of Ashtead Group. The Motley Fool UK has recommended Barclays and GlaxoSmithKline. 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. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! 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The Micro Focus share price has doubled in a month. I’d keep buying

first_imgSimply click below to discover how you can take advantage of this. See all posts by Roland Head Image source: Getty Images Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. The Micro Focus share price has doubled in a month. I’d keep buying Roland Head has no position in any of the shares mentioned. The Motley Fool UK has recommended Micro Focus. 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. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool.center_img Enter Your Email Address I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Our 6 ‘Best Buys Now’ Shares The Micro Focus International (LSE: MCRO) share price has doubled in just one month. The shares are up by 15% today as I write, even though the software company hasn’t issued any new trading information.Is this the start of a stunning comeback for this former FTSE 100 share, which was valued at more than £10bn a few years ago?5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…I certainly think that Micro Focus shares should be worth more. However, I do think there are a couple of risks that may limit the eventual value of this business.Gaining pace?On 18 November, Micro Focus gave a trading update for the year to 31 October. The company said that revenue for the year would be around $3bn, but that profit margins would be “towards the upper end of management expectations”.The news sent the Micro Focus share price up by 30% on the day. The stock has since risen by another 40%, as investors buy in to CEO Stephen Murdoch’s vision of a more efficient and focused business.It’s still early days, as the company is less than one year into Mr Murdoch’s three-year turnaround plan. But with the shares trading on just four times forecast earnings for 2021, I think there’s still room for further gains.What I’d watchAs I mentioned, I have a couple of concerns about Micro Focus shares.The first issue is that this business isn’t showing many signs of growth. Although this is a software business, its main activity is helping companies maintain and develop older IT systems. Often, this includes digital transformation. Mostly, this means making old tech work with modern online services.The last time the company reported any sales growth was 2018. Since then, revenue (reported in dollars) has fallen from $4.754bn to about $3bn in 2020. The latest broker forecasts for 2021 suggest that revenue will slip lower again next year, to $2.834bn.Businesses that are in decline generally attract low valuations, even if they remain profitable. Mr Murdoch hopes to return Micro Focus to growth. I think there’s a good chance he’ll succeed, but it’s not a certainty.Micro Focus share price: don’t forget debtIf the shares continue to trade at current levels, I wouldn’t be surprised to see Micro Focus become a bid target. But anyone buying the company would need to buy its debt as well as its shares.The group had net debt in GBP of £3.2bn at the end of October. Adding this to the Micro Focus market cap of £1.7bn gives a total value for the business of about £5bn. This is known as the enterprise value — it’s the total commitment someone buying the whole company would have to make.How much is Micro Focus worth? I can’t say for sure, but I believe that even with the current debt load, this business is worth more than the current share price suggests.So, I’d hold the stock at 500p and monitor the performance of the business as we head into 2021. I think there could be more to come from this turnaround. Roland Head | Monday, 7th December, 2020 | More on: MCRO last_img read more

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2 UK shares to buy for the great ‘reopening’

first_imgWhile the lifting of restrictions should be good news for AG Barr, it would be foolhardy to assume there won’t be obstacles ahead. The possibility of a third wave of the coronavirus can’t be ignored. Especially if the vaccine programme runs into trouble.This is a UK share for the ‘bottom drawer’. Sweet treatOf course, there are other ‘reopening’ options available in the small/mid-cap space. Chocolatier Hotel Chocolat (LSE: HOTC) is another example of one that could do very nicely in time. Now, it’s quite reasonable to say that sales of chocolate are unlikely to rocket as we approach summer. This is particularly the case if we get a heatwave! As a counter to this argument, I suspect HOTC’s next update on trading could be better than some in the market are expecting. It should, after all, take into account trading in the Easter period. If reports are to be believed, many in the UK are treating this weekend as a second Christmas and spending lots on decorations and, very likely, chocolate eggs.On top of this, the recent decision by rival Thorntons to abandon its high street stores could prove a boon to the £500m-cap. It should allow HOTC to assume pole position at the luxury end of the UK market.Like AG Barr, I wouldn’t buy Hotel Chocolat stock if I were only considering holding it for a few weeks or months. Investing requires patience. Trying to predict where a share price will go in the very near term is asking for trouble.On a mid-to-long-term basis, however, I’m confident these UK shares could do very well for holders. Image source: Getty Images 2 UK shares to buy for the great ‘reopening’ As the UK continues to gradually lift lockdown restrictions, I’ve been casting my eye over which shares might recover strongly. Today, I’m going to highlight two examples, one of which I already own, that could do well for patient investors.A UK share ready to fizzAs a holder of the stock, I never expected today’s final results from drinks firm AG Barr (LSE:BAG) to be all that impressive. And so proved to be the case.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Due to the enforced closure of bars and pubs, the producer of thirst-quenching brands such as IRN-BRU and Rubicon has been hit hard by the pandemic. Revenue fell 11.2% to £227m over the 12 months to 24 January. Pre-tax profit also decreased — by 12.3% — to £32.8m (or £26m once one-off costs were deducted). Despite this, there were a few bits of good news.Partly as a result of steps taken to control costs, Barr ended the year with £50m in net cash. That’s up significantly from the £10.9m logged at the end of the previous financial year. This comforts me. As an investor, I need to know a business I part-own has a sufficiently robust balance sheet to negotiate inevitable periods of ‘sticky’ trading. In other news, CEO Roger White said the company had “the clear intention to recommence dividend payments in 2021.” The fact that it hasn’t done so already is actually a positive for me. As nice as dividends are, I don’t want a business showering me with cash until it’s confident in its outlook. All told, I’ve no problem staying invested. That’s not to say I expect the share price to motor back to its 2019 high for a while.  Paul Summers | Tuesday, 30th March, 2021 | More on: BAG HOTC “This Stock Could Be Like Buying Amazon in 1997” Our 6 ‘Best Buys Now’ Shares Simply click below to discover how you can take advantage of this. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. See all posts by Paul Summers Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Enter Your Email Address Paul Summers owns shares in AG Barr. The Motley Fool UK has recommended AG Barr. 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. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee.last_img read more

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The IAG share price has crashed 7% today! Here’s why

first_img Are you on the lookout for UK growth stocks?If so, get this FREE no-strings report now.While it’s available: you’ll discover what we think is a top growth stock for the decade ahead.And the performance of this company really is stunning.In 2019, it returned £150million to shareholders through buybacks and dividends.We believe its financial position is about as solid as anything we’ve seen.Since 2016, annual revenues increased 31%In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259Operating cash flow is up 47%. (Even its operating margins are rising every year!)Quite simply, we believe it’s a fantastic Foolish growth pick.What’s more, it deserves your attention today.So please don’t wait another moment. Cliff D’Arcy | Tuesday, 11th May, 2021 | More on: IAG The IAG share price has crashed 7% today! Here’s why Today has not been a good day for UK shareholders. As I write, the blue-chip FTSE 100 index stands at 6,956.94 points, down 166.74 points (2.3%) on Monday’s close. At its low today, the Footsie had slumped to 6,912.36. Obviously, some shares have done much worse than others in today’s stock sell-off. For example, the International Consolidated Airlines Group (LSE: IAG) share price is among the index’s worst performers.The IAG share price slides 7%As I write, the IAG share price stands at 195.42p, down 14.43p (6.9%) on Monday’s close. At this time, every FTSE 100 stock is down, but IAG is among the top fallers. It stands at #2 in this losers’ list, with only engineering firm Renishaw (-7.1%) falling harder.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…What on earth has happened to make markets take fright and write down the IAG share price by nearly 7%? Like so many market scares in London, this one first took hold on the other side of the Atlantic. Yesterday, highly valued US tech stocks had a bad day, with the Nasdaq Composite index sliding 2.6%, one of its worst days since March. The US index is also having another down day, having dropped a further 1.5% as I write. Furthermore, it’s down 6% so far this month. But what’s this got to do with the IAG share price?Markets are worried about inflationThe main reason for today’s price falls is the same as always: persistent selling pressure sent stocks southwards. And the shares that have flown highest in 2020/21 have tended to be those that fall hardest when investor optimism wanes. These include frothy US tech stocks, as well as the funds that invest in these firms. Some highly rated US stocks have fallen by 10% or more since last Friday. And given that the IAG share price reflects a market-sensitive and cyclical airlines business, it took a harder dive than most.That said, it’s clear that shareholders in both London and New York are starting to worry about the threat of higher inflation (rising consumer prices). If inflation remains elevated for an extended period, then this might force central banks to tighten monetary policy. For example, the US Federal Reserve might lower its monthly bond purchases from below their current $120bn level. Or central banks might raise interest rates, triggering higher bond yields and lower bond prices. This would make shares in go-go growth companies look relatively less attractive, hence impacting their share prices. And it’s these worries — higher inflation leading to higher interest rates — that have hit the IAG share price today.Would I buy IAG today?Almost a week ago (on 5 May), I said that I saw room for the IAG share price to go higher on good news. Back then, the shares were trading at 202p. Right now, they are 3.3% cheaper, making them slightly lower-priced. However, as a veteran value investor, I am wary of highly rated growth and recovery stocks. With IAG having a horror show of a 2020, this richly valued share could be vulnerable in future market corrections. Although IAG might be a great proxy share for a post-pandemic boom, I’m going to pass on it for now. I’d need to see hard evidence of a turnaround in the skies before I’d back this FTSE 100 firm today! Image source: British Airways I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Cliffdarcy 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. Enter Your Email Addresscenter_img Our 6 ‘Best Buys Now’ Shares Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Simply click below to discover how you can take advantage of this. FREE REPORT: Why this £5 stock could be set to surge Get the full details on this £5 stock now – while your report is free. See all posts by Cliff D’Arcylast_img read more

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