How I’d invest £10K in this FTSE 100 stock market crash

first_imgHow I’d invest £10K in this FTSE 100 stock market crash Tom Rodgers | Thursday, 12th March, 2020 Investors with cash to invest will be greedily poring over the cut-price shares in the FTSE 100. The UK index has crashed 26% from nearly 7,500 to 5,500. It has fallen to an eight-year low in just a couple of weeks.Stock markets have witnessed some of the steepest price drops in a generation. It’s a time of extraordinary panic and fear.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 with panic and fear comes opportunity. It may be difficult to channel your inner Warren Buffett at times like this. But note that the greatest value investors in history all say the same thing.Back to basicsSir John Templeton, arguably the greatest stock picker of the 20th century, said: “The time of maximum pessimism is the time to buy, and the time of maximum optimism is the time to sell.”He added: “If you want to have a better performance than the crowd, you must do things differently from the crowd.” On the eve of World War II in 1939, investors were fleeing stock markets. That is when Templeton decided to buy. His portfolio returned 400% over the next four years.Templeton was following Benjamin Graham’s lead. Graham is the original father of value investing and Warren Buffett’s mentor. His 1949 book The Intelligent Investor was a great source of inspiration to me and you should read it too. Graham said: “Buy when most investors, even experts, are pessimistic. And sell when everyone is optimistic.”To take this approach requires courage. And the knowledge that your moves may not play out immediately. But they will bear fruit over the long term.In my opinion the FTSE 100 and world stock markets have much further to fall. We’re not at maximum pessimism yet.From £10K to £400KThe difference between an average return from the stock market and a good one is stark. Using the accounting tool known as the Rule of 72, we can work out that a portfolio returning 10% a year will double your money every 7.2 years, requiring absolutely zero work or extra capital invested.If you are around 40 years old today, that gives you four periods of doubling before you retire, turning £10,000 into £20,000, then £40,000, then £80,000.But the magic of compound gains means any extra additions will impact hugely on your final total. Leave £10,000 in a Stocks and Shares ISA or SIPP returning 10% and never look at it again, that’s fine.But add £200 a month to your initial £10,000 investment and at 10% return something rather magical happens. At the end of your fourth doubling period, your total is not £80,000 but £354,000.Even a portfolio returning a much lower rate of 5% a year, with the couple of hundred pounds a month added would give you £159,000 at the end of 28 years.As I’ve written elsewhere I’m not buying yet. As the FTSE 100 crashes I’m stockpiling cash, building a solid watchlist and waiting.But taking the long view is what will really make your gains spectacular. 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. “This Stock Could Be Like Buying Amazon in 1997” Enter Your Email Address Image source: Getty Images. 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 Simply click below to discover how you can take advantage of this. 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. See all posts by Tom Rodgers 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!last_img read more

5 cheap UK shares I’d buy right now

first_img 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. Rupert Hargreaves | Wednesday, 2nd December, 2020 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. “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. Rupert Hargreaves owns no share mentioned. The Motley Fool UK has recommended Marstons. 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 5 cheap UK shares I’d buy right now I plan to buy a basket of cheap UK shares in 2021 to take advantage of the country’s economic recovery. I reckon the market is severely undervaluing the prospects for a considerable number of businesses, and I’m looking to take advantage of this discrepancy. 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…Cheap UK sharesOne company that stands out to me is Halfords. This corporation has surpassed all expectations in 2020, and I reckon its good fortune will continue in 2021. A surge in demand for bicycles and cycling equipment this year has provided a windfall for the group. I don’t think this will be a one-off.As the world moves towards a more sustainable future, I believe the demand for green transport will continue to grow. At the same time, equipment acquired this year during the pandemic will need to be maintained going forward. As one of the largest bicycle retailers in the country, Halfords should continue to profit from this theme for years to come, in my opinion. Two other cheap UK shares I’ve been eyeing up are outsourcing group Mitie and pub operator Marston’s. These are two very different businesses. Nevertheless, they’ve both been severely impacted by the coronavirus crisis. Marston’s has struggled due to the forced closure of its hospitality venues. Meanwhile, Mitie is having to deal with higher costs, which are eating into the group’s already thin profit margins.I reckon these are only short-term pressures. Before the pandemic, spending in hospitality venues was at an all-time high. I suspect the sector will recover swiftly when restrictions are lifted. At the same time, I think the UK economic recovery would benefit Mitie. Higher sales may come as a result of increased confidence in customer-led companies. Put simply, I believe these two operations could be some of the best cheap UK shares to play the UK’s economic recovery in the years ahead. Long-term growth Renewi and International Personal Finance are not as exposed to the state of the UK economy as the companies profiled above. However, I still think they could be worth adding to a basket of cheap UK shares in 2021. Renewi is, quite literally, a rubbish business. It provides waste disposal and recycling facilities for customers across the UK and Europe. I think this is a highly defensive business and should continue to see growth, no matter what the future holds for the UK economy over the next few years. International Personal Finance offers unsecured consumer finance products across Europe. Like many other lenders, the firm is expected to report a loss this year due to credit write-offs. However, analysts are expecting a return to growth in 2021. I believe this could lead to improved investor sentiment towards the shares and large total returns for investors in 2021. If the recovery is faster than expected, the stock may even exceed City expectations.  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! 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 Rupert Hargreaveslast_img read more