Hello, any suggestions in terms of fairly low risk UK stocks to purchase for the long term?
Ideally looking at companies that may be slightly undervalued at present but will bounce back after the lockdown measures are eased and the economy picks up. Perhaps something that will provide gains of around 10-20% over the next few years.
By way of example, I’d put the likes of Jet2 in this category as I believe they’re financially sound enough to get through this tricky period and I anticipate the price will go up once international travel resumes.
Is there any particular reason why you are only interested in safe UK stocks and not safe US stocks. Generally, US stocks perform better ( and Brexit is another factor ) If you if have a low appetite for risk atm I would consider ETFs or investment trusts first IMO.
This is the million pound question!
What people would do for a 10/20% yearly return over the long term!
If you want something that’s safe then stick to an ETF, lower risk, lower reward.
@SebReitz I am merely asking for suggestions, not for “financial advice”. As it happens I am doing my own research. This question forms part of my research.
@Amina I was mainly looking at UK stocks for the SIPP in question, in order to avoid FX fees. However I take your point(s) about US stocks performing better - and the Brexit issue.
I personally would not touch any stock that can be so dramatically impacted by COVID.
First COVID wasn’t going to be much, then a few weeks, over by summer, after Xmas, March, now maybe Summer.
The reality is this could be effecting us for years to come.
Imagine this hypothetical scenario:
12 months down the line. COVID under control in UK. Spain rates take off for whatever reason…new variant…poor vaccine programme, poor uptake etc etc… UK ban all travel to Spain.
Every country has a unique set of circumstances and I think we are a long way off a return to worldwide travel.
You get the point. Anything travel related in my opinion is to steer clear of for years unless you are willing to take the risk for the reward. For me, there’s other places to put the money that don’t depend on the world getting its global pandemic under control.
Like others have said, unless you want to buy into a fund, you’ll need to put some work in. Searching the past year performance of stocks will tell you quite clearly, if they’ve returned to their pre-Covid values. If you’re looking for ideas, you could subscribe to something like Simply Wall Street and research ‘Value’ stocks with solid fundamentals and try to buy on a dip. Or look for decent dividend yielding stocks that also have a bit of capital growth. I would certainly heavily research the fundamentals of any stock that anyone recommends on FT! There are a ton of investing podcasts you can listen to if you want tips. But again I would highly recommend you research them. If you want a relatively ‘safe’ slow grow ‘Value’ portfolio, consider diversifying across many sectors and not holding more than 5-10% of your overall portfolio value in any one stock. Good luck!
There’s no certainties or “safe” stocks, but for a pretty safe bet that should give you a modest return you could look at pure online businesses, like Boohoo.
Then theres a little bit more risky companies like BP and Shell who require a covid recovery to get going again, but also in the process of slowly reorganising their models away from fossil fuels. Than you have something pretty high risk, but potentially with big rewards, with Cineworld.
I held some but got out when the issues regarding exploitation came out. Doesn’t seem a trustworthy company and also although I realise alot of companies I invest in may cause harm I’m not sure I feel comfortable investing in a company so closely associated with something so severe.
Yes, I know about them, but do you? They are not directly involved.
Right, so you are just being selective with your moral outrage, if have invest in any big tech company over the years, Apple, Microsoft, Amazon etc I do hope you liquidate your positions tomorrow and any gains you have made is given to charity…
I made a separate thread about this because I thought it raised a really interesting question. You’re right, it’s difficult to fully know who you’re investing in and whether that company behaves in a way the fits with your world view. Similar some might say they don’t care along as they make them money. Similarly you’re never going to agree with every decision a company makes.
At risk of sounded pious I actually avoid most of those companies you’ve named with the exception of Microsoft who incidentally have a high ESG rating.
Even Tesla, a company you would expect to be high on ethics, given the ethos around its approach, but they also are not excused from violating labor laws over the years.
As for Boohoo it will get over its damaged image (its stock price hasn’t been) and continue to grow at a high rate, just look at its recent brand purchases
I just wouldn’t see boohoo as stable or safe company. It’s a fairly new company and doesn’t have a massive moat either. You never know where this is going. I’m surprised that they still exist to be honest after that scandal using essentially slave labour in Britain.
The current bull market has led many people to believe stocks always go up it’s just a matter of how much and by when… But nope… One day stocks will crash again and many people will panic… Please remember that investing carries risk and you should only invest with a long term time horizon of 5 years+
