Why I’m buying cheap UK shares in my ISA and ignoring Cash ISAs and buy-to-let!

first_imgWhy I’m buying cheap UK shares in my ISA and ignoring Cash ISAs and buy-to-let! Enter Your Email Address Image source: Getty Images. FREE REPORT: Why this £5 stock could be set to surge See all posts by Royston Wild Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Avon Rubber and B&M European Value. 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. The global economy is fraught with danger as we edge further into the new year. The continuing public health emergency is the main threat to UK shares in 2021. Though the worsening Covid-19 crisis and returning lockdowns across the globe aren’t the only perils to the stock market recovery.It might be tempting to run for the hills and forget about investing in UK shares right now. Parking your money in a low-risk Cash ISA, for example, might be seen an attractive option until things blow over. Others might think about investing in stable assets like bricks-and-mortar instead by getting in on 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…Neither of these options are things I’ve considered doing. Not even for a second. The interest rate on cash accounts like Cash ISAs are so pathetic that it’s hardly worth bothering. Elsewhere, soaring buy-to-let costs are decimating the returns that aspiring landlords can expect to generate.Taking a patient approachIndeed, I’ve continued to buy UK shares in my Stocks and Shares ISA following the Covid-19 outbreak. And I plan to keep building my shares portfolio despite the uncertain macroeconomic and geopolitical environment.As a long-term investor I’m not concerned about the prospect of more turbulence for the global economy in 2021. I aim to make money over a number of years and buy UK shares with a view to holding them for at least a decade. History shows that stock investors who invest in this sort of time horizon make a chunky average annual returns of 8% to 10%.This patient approach isn’t the only reason why I’ve kept acquiring UK shares for my ISA, however. The 2020 stock market crash dragged some top-quality stocks down with all the duds. And many robust UK shares like these have failed to recover from the correction. This enables brave investors like me to nip in and build a five-star stocks portfolio at little cost.2 cheap UK shares on my shopping listA couple more mega-cheap UK shares I’m considering adding to my Stocks and Shares ISA include:Avon Rubber. City analysts reckon earnings at the body armour maker to rocket 36% this financial year. This leaves it trading on a forward price-to-earnings growth (PEG) ratio bang on the bargain benchmark of 1. I’m expecting profits here to rocket over the next decade as huge geopolitical tensions fuel Western demand for its protective products.B&M European Value Retail. Annual earnings are expected to almost double here this fiscal year. Consequently the discount retailer trades on a forward PEG multiple of just 0.2. Tough conditions for the consumer will keep demand for its low-cost products flying off the shelves in the next few years, I feel. And aggressive store expansion will underpin stunning profits growth at the FTSE 100 firm further out.As I say, now is a great time to go out and try to get rich with UK shares.  Get the full details on this £5 stock now – while your report is free.center_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. 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. 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. Royston Wild | Sunday, 24th January, 2021 last_img

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