British American Tobacco Kenya Limited (BAT.ke) 2020 Abridged Report

first_imgBritish American Tobacco Kenya Limited (BAT.ke) listed on the Nairobi Securities Exchange under the Agricultural sector has released it’s 2020 abridged results.For more information about British American Tobacco Kenya Limited (BAT.ke) reports, abridged reports, interim earnings results and earnings presentations, visit the British American Tobacco Kenya Limited (BAT.ke) company page on AfricanFinancials.Document: British American Tobacco Kenya Limited (BAT.ke)  2020 abridged results.Company ProfileBritish American Tobacco (BAT) Kenya Limited grows, manufactures and sells tobacco products in Kenya. Cigarettes and other tobacco products in its product range include Dunhill, Rothmans, Embassy, Sportsman, SM, Safari and Rooster. The local cigarette brand produced for the Kenyan market is Embassy. The company also exports tobacco products to 13 countries in the African sub-region. The Kenyan enterprise is a subsidiary of the world’s most prestigious international tobacco business, parent company British American Tobacco Group. BAT Kenya was founded in 1907 and formerly known as BAT Kenya Limited. It changed its name to British American Tobacco Kenya Limited in 1998. British American Tobacco Kenya Limited is listed on the Nairobi Securities Exchangelast_img read more

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The 1 stock I’ll be buying in a market crash

first_imgThe 1 stock I’ll be buying in a market crash Michael Taylor 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. Image source: Getty Images. See all posts by Michael Taylor Enter Your Email Address 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.center_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. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! When the market crashes, bargains become plentiful. For the astute investor, life-changing money can be made when everyone is panicking and selling. As Warren Buffett tells us, we should be greedy when others are fearful. At no time was this more true than during the 2008 Financial Crisis. When the banking sector was on its knees, and prevailing opinion was that the entire financial system was going to collapse, fortunes were made by smart investors picking out quality stocks that had huge discounts and were priced to go bust. 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 been over 11 years since the last crash. We had a brief recession five years ago, with fears of China growth slowing, which led to oil and commodities prices slumping, but since then it’s been all sunshine and rainbows, aside from a few blips. But what should you buy when the stock market really crashes? Well, strong balance sheets are important, with good quality assets that are able to deliver sustainable cash inflows for a company.A moat helps too — something that protects the company from competitors. If you had £1m today to start a company today, what damage could you do to Coca-Cola? The answer is very little. The moat there is too strong.So, while very few people tend to think about a recession until it comes, this stock below is the one I’ll be loading up on when the crash eventually arrives. A tribute to Southwest AirlinesSouthwest Airlines under Herb Kelleher was a business with a relentless focus on low-cost operations. This meant it could pass on the savings to customers and generate the volume required for economies of scale.Ryanair (LSE: RYA) is no different today. And though the airline is either loved or hated, everyone can agree on one thing, its pricing is extraordinarily cheap.Yes, you might have to pay extra to choose your seat, for luggage, and even hand luggage now, but when you do, no doubt it is still cheaper than the nearest competitor. Ryanair isn’t trying to be pretty and the blue and yellow livery smacks of ‘cheap’. But this is done on purpose so that customers do not think money is wasted on aesthetics. And what it does do is drive down costs however it can. And it certainly has a moat. This is a company that charges less per seat than many of its competitors’ operating costs! Clearly, trying to play against Ryanair in the low-cost arena is going to be tough unless that competitor is ready to go all in for a long and fierce pricing war. Why I’d buy this stock in a recession My opinion is that people will still want to fly in a recession. But when money is tight — price becomes more important. Therefore, Ryanair may even win customers as discretionary spending comes down and other priorities such as comfort and ease are left by the wayside. Other competitors will become unaffordable. It’s also a stock that doesn’t look like going out of business any time soon. Traffic grew 11%, it said in its interim report. The company also announced operations in its 40th country — meaning there are well over 100 countries left in which it could potentially debut. I’ll be waiting until everyone is fearful. Then I’ll be greedy.  “This Stock Could Be Like Buying Amazon in 1997” Michael Taylor | Saturday, 4th January, 2020 | More on: RYA 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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Investing in the Covid-19 era – I think bank shares are looking attractive

first_img Michael Baxter | Tuesday, 31st March, 2020 Enter Your Email Address Simply click below to discover how you can take advantage of this. 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” 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! Investing in the Covid-19 era – I think bank shares are looking attractivecenter_img Michael Baxter has no position in any of the shares mentioned. The Motley Fool UK has recommended Barclays, HSBC Holdings, and Lloyds Banking Group. 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. During the 2008 crash, banks saw their reputation sink so low that many wondered if it would ever recover. During the Covid-19 crisis they are not exactly regarded as saints, but they do seem to have been among the companies that have seen their image improve.  The turnaround has been 12 years in the making, but I think that banks have finally won back the public’s trust – mostly. 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 what about investing in banks? What about shares in HSBC Holdings or Lloyds Banking Group, for example? What about Barclays and Royal Bank of Scotland Group shares? Have they become more attractive too?The share pricesMost of the banks have suffered especially acute falls in their share price this year.The FTSE 100 has fallen by just over a quarter since the beginning of the year, but shares in Lloyds, on the other hand, have halved. It has been a similar story with Barclays  shares, while the RBS share price has more than halved — from 244p to 114p.  For HSBC shares it’s been tough but not quite so bad. Its shares have fallen by slightly less than a quarter.At face value that feels almost ironic. Shares in the bank that is famous for its links with China has performed much more strongly than the more UK-centric banks. But if you look a little more carefully at HSBC shares compared with shares in Lloyds, Barclays, and RBS, you will see a slight difference in timing. The HSBC share price started to fall a little sooner and has seen a mild recovery, roughly coinciding with with signs that the Covid-19 virus was spreading less quickly in China.Lower share price means higher dividends The recent falls in shares pertaining to the four banks has meant the yield has improved — assuming that dividends are maintained. The HSBC dividend yield is now just under 9%. Lloyds dividends are over 10%. RBS dividends are lower at just under 4%, but then the bank has only recently started paying dividends. The Barclays dividend yield sits roughly between the HSBC and Lloyds yield.With interest rates so low, I would be tempted to say these yields are very attractive.There is one big question mark hovering, however. Will dividends be maintained?We just don’t know how weak the economy will be in the post-Covid-19 era. Suppose house prices crash. A significant part of Lloyds’ revenue is from mortgage lending, so how would falling house prices affect it?Then there is the possibility of a debt bubble. If the economy falls into some kind of depression, might indebted households default in big numbers?On the other hand, partly thanks to international regulations imposed to reduce banks’ vulnerability in the event of another financial crash, banks have much stronger balance sheets today compared to 2008.I hate to tempt fate by saying this, but I think that the banks are highly unlikely to need a bailout this time around.We will always need banks, and after certain teething problems, they have all learned how to adopt digital technology. I think that shares in HSBC, Lloyds, and Barclays are appealing, right now. As for RBS shares, I am not so sure — this crisis is not good timing. See all posts by Michael Baxter Our 6 ‘Best Buys Now’ Shares Image source: Getty Images last_img read more

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How I’d invest £10k in this FTSE 100 bear market

first_img Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! When history looks back to 2020 it will record that the FTSE 100 fell into a bear market because of the dual gut punch of a novel coronavirus outbreak and a Saudi-Russia oil price war.Both of those events are still playing out. It’s clear that we will feel their effects for years to come.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…Bear markets are usually defined as periods when stock market indexes drop 20% from a recent peak. For us, that peak was around 19 February. The FTSE 100 stood at a now-unthinkable 7,457 points. But despite those crushing lows in March, the FTSE 100 has recovered by 19%. From a 23 March low of 4,993, the index has reclaimed nearly 1,000 points.Whether this recent rally is sustainable is a matter for debate. If the pubs were still open, it would be order-of-business number one on the table between my investor friends and me.Keeping hold of my portfolio of funds, FTSE 100, FTSE 250, and AIM companies has been an emotionally taxing process.How to profitOne thing is certain. Choppy markets offer up a bunch of new opportunities for investors with cash on hand.Most of the UK’s largest firms have said they have little to no visibility on their 2020 earnings. So company valuations will be necessarily inaccurate in the months to come. Long-term investors should be able to take advantage of this kind of mispricing.As I said in the wake of the worst stock market crash since 1987, I’ve been stockpiling cash. I now have around five figures ready to deploy. And I’m ready to pounce whenever I see the market significantly undervaluing good companies.Grin and bear itYou wouldn’t be human if you weren’t nervous of further falls in your portfolio. I was stunned by the steep drop in my net worth when the FTSE 100 crashed. About 15% of my ISA wealth was wiped out in a day. It’s been painfully slow, but because I stayed invested, I’ve regained everything that was lost.Of course there will be businesses that simply run out of cash before the economy reopens, never to resurface. But my focus now is on the businesses I think will not just survive a 2020 recession, but thrive as life slowly returns to normal.I’m looking to add to my holdings in 10%+ yield energy supermajors BP and Royal Dutch Shell. The 8.5% yield in Legal & General is attractive, too. And I think a new investment in a FTSE 100 UK housebuilder with relatively low debt and a conservative gearing, for example Taylor Wimpey, makes a lot of sense, too.I would add that I think consumer habits will be changed forever by the coronavirus outbreak. I’m looking at outsourcing companies like Bunzl to profit from the extremely elevated level of purchasing in industrial cleaning supplies, for example.Bear markets all share particular characteristics. Sellers, not buyers, set the price. Investor sentiment cycles rapidly between hope and despair. But bear markets are where small private investors like you and me can set ourselves up for some of the strongest gains we will ever see. “This Stock Could Be Like Buying Amazon in 1997” See all posts by Tom Rodgers Tom Rodgers | Tuesday, 28th April, 2020 Enter Your Email Address How I’d invest £10k in this FTSE 100 bear market 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 Tom Rodgers owns shares in Royal Dutch Shell, BP and Legal & General. 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. 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. Image source: Getty Images. 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. Our 6 ‘Best Buys Now’ Shareslast_img read more

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Retirement savings: I’d buy these 2 bargain FTSE 100 shares to become an ISA millionaire

first_imgRetirement savings: I’d buy these 2 bargain FTSE 100 shares to become an ISA millionaire Simply click below to discover how you can take advantage of this. Enter Your Email Address The FTSE 100 has gained 10% in the last month, but continues to offer a number of stocks that appear to trade at attractive prices. As such, now could be a buying opportunity for long-term investors who are looking to build a retirement nest egg.With the index having a strong track record of generating annual total returns of around 8%, it could even offer the potential to generate a seven-figure ISA over the coming years.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…Here are two FTSE 100 shares that could help you to obtain a £1m+ ISA due to their growth potential and appealing valuations.RightmoveFTSE 100 online property platform Rightmove (LSE: RMV) has experienced a significant amount of disruption in 2020. The property market essentially shut down for a number of weeks. During this time, the company sought to help its members through offering measures such as discounted rates. It also decided to suspend its financial guidance for the current year and cancel its dividend.These measures may have caused the company’s shares to decline heavily in the first few months of 2020. But they have since delivered a strong recovery so that Rightmove now trades just 6% down year-to-date.Looking ahead, the FTSE 100 company’s dominant position in the online property marketplace could allow it to deliver relatively high returns. It is forecast to post a 45% rise in net profit next year, which suggests it is set to bounce back from what is likely to be a disappointing 2020 financial year.Since the stock currently trades on a price-to-earnings growth (PEG) ratio of just 0.7, it appears to offer a wide margin of safety. As such, now could be the right time to buy a slice of it as it delivers a likely financial recovery.FTSE 100 telecoms company VodafoneAnother FTSE 100 share that has made strong gains over recent weeks is Vodafone (LSE: VOD). Its share price is also down just 6% since the start of the year as investors have become increasingly optimistic about the company’s long-term prospects.Vodafone’s recent annual results showed progress is being made in aspects of its business such as efficiency gains, infrastructure investment and in becoming increasingly digital. These changes could lead to improving profitability over the long run that allows the stock to command a higher valuation.The company also appears to offer a relatively resilient business model compared to its index peers. For example, it has maintained its dividend policy despite an uncertain macroeconomic outlook, while its financial outlook continues to be positive.Therefore, with investor sentiment having the potential to weaken over the coming months should there be further economic uncertainty, Vodafone could prove to be a popular FTSE 100 share among risk-averse investors. As such, now could be the right time to buy it for the long run to improve your retirement prospects. 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. Peter Stephens owns shares of Vodafone. The Motley Fool UK has recommended Rightmove. 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 Peter Stephens | Monday, 8th June, 2020 | More on: RMV VOD 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! Image source: Getty Images 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 Peter Stephenslast_img read more

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3 shares I’d buy and hold for the next decade for dividend income

first_img Image source: Getty Images. 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 Andy Ross 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 Andy Ross owns shares in National Grid and AstraZeneca. The Motley Fool UK has recommended 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. Andy Ross | Wednesday, 22nd July, 2020 | More on: AZN GSK NG Enter Your Email Addresscenter_img “This Stock Could Be Like Buying Amazon in 1997” Various studies have shown that dividends, when reinvested, play a significant role in overall investment returns. For this reason I have a watchlist of income shares. Here are three I’d consider buying now to hold for the next decade.The steady share to power my portfolioNational Grid (LSE: NG) is a share I’ve held for a long time. I see little reason why I won’t continue to hold the shares for another decade. The dividend yield is 5.5%. I think, even in an unprecedented environment like the current one, the dividend is unlikely to be cut.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…A halving of returns from Ofgem is far from ideal for the shares and I suspect that’s why they’ve fallen recently. Long-term though, I think the growth in the unregulated ‘Ventures’ part of the group, alongside growth in the US, means National Grid should do well.A combination of a steady business, growth opportunities, a share price that isn’t volatile, and a dividend that should always be paid, combine to make me think National Grid is a great investment for the next decade.The Covid-19 factor AstraZeneca (LSE: AZN) is another share I hold. It’s also another share that should do well in all market conditions as there’ll always be demand for pharmaceuticals.This is why I fully expect it to always provide dividend income. As the share price has done very well in recent years, and especially in the last few months, it’s not the highest yielding of shares. However, that’s fine if you’re looking for dividend growth, which is arguably more important than yield.Involvement in finding a vaccine against Covid-19 has helped lift sentiment around AstraZeneca. This has boosted the share price, which was already rising due to a flurry of positive drug updates last year and this year. The shares are expensive, but I think they should do well over the next 10 years.Room for improvement and dividend growthGlaxoSmithKline (LSE: GSK) is another pharmaceutical business I’d add to my list of shares to hold for the long term. It’s a bit behind AstraZeneca in some ways, but that gives it more room for improvement. It has a higher yield, but the downside is that the dividend has been held up for a few years as the group focuses on R&D.Assuming this R&D investment translates into potential big new treatments – as it has at AstraZeneca – then the next decade could be very good for the share price.Just this week, it was announced that GSK is making a £130m investment into German group CureVac, which is also involved in finding a vaccine for Covid-19. The investment could help GSK defend its strength in the vaccine market where it’s a major player.With that increased focus on R&D and more specifically, oncology, I think GSK could be on a path similar to AstraZeneca’s. It’s playing catch-up, but the share price could do well if the bets on drugs pay off. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Simply click below to discover how you can take advantage of this. 3 shares I’d buy and hold for the next decade for dividend income 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.last_img read more

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No savings at 40? I’d buy UK shares today despite the threat of stock market crash part 2

first_img Enter Your Email Address 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 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” Peter Stephens | Friday, 6th November, 2020 Simply click below to discover how you can take advantage of this. See all posts by Peter Stephens Image source: Getty Images No savings at 40? I’d buy UK shares today despite the threat of stock market crash part 2 Many investors may be avoiding UK shares after the stock market crash. They may feel that the threat of a second downturn means that other assets are more attractive at the present time.However, the long-term prospects for FTSE 100 and FTSE 250 shares could be relatively positive. Even if there is a market decline over the short run, long-term investors are likely to have sufficient time available to benefit from a recovery. And with risks currently high, many high-quality companies are trading at low prices.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…As such, investors with no retirement savings aged 40, or with a long-term view, may be able to capitalise on the stock market’s current low valuation to build a nest egg.A second stock market crashAnother stock market crash could happen in the months ahead. Political risks are currently high. And the economic outlook continues to be relatively downbeat. As such, it would not be a major surprise to many investors if indexes such as the FTSE 100 and FTSE 250 declined in value.Of course, such a scenario is not guaranteed. The stock market could remain in its current bull market. Moreover, even if it did decline in the short run, a long-term investor is likely to have ample time to benefit from a likely recovery. Indexes such as the FTSE 100 and FTSE 250 have strong track records of mounting successful comebacks from their previous bear markets.As such, buying a diverse range of UK shares could be a sound move. Many company valuations appear to factor in the prospect of a second stock market crash. This may enable investors to buy high-quality companies at low prices so that they have greater scope to deliver capital appreciation over the long run.Investing money in UK shares todayClearly, the threat of a stock market crash is a perennial risk facing investors. Therefore, it is logical to try and mitigate risks as much as possible.Simple measures to do so include buying the best UK shares available today at the lowest prices. The most attractive companies are often those with solid financial positions.And they have the highest chance of delivering profit growth in the long run through having a competitive advantage. Similarly, buying a diverse range of shares could limit exposure to one sector or region. At a time when the coronavirus pandemic is ongoing, a mix of companies operating in different areas could prove especially useful.Yes, a second stock market crash would be likely to produce paper losses for investors. But a diverse portfolio of high-quality companies is likely to deliver impressive returns over the long run. Buying such companies at low prices today could lead to even more impressive returns that have a positive impact on the size of an investor’s nest egg. 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.last_img read more

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How I’d invest £250 a month in UK shares to make a passive income that doubles the State Pension

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. “This Stock Could Be Like Buying Amazon in 1997” 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 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. How I’d invest £250 a month in UK shares to make a passive income that doubles the State Pension Enter Your Email Address Image source: Getty Images center_img See all posts by Peter Stephens 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. Peter Stephens | Saturday, 5th December, 2020 Simply click below to discover how you can take advantage of this. Investing money in a selection of UK shares each month could lead to a surprisingly large portfolio over the long run. From it, a generous passive income could be obtained that’s at least as much as the State Pension.With many FTSE 100 and FTSE 250 shares currently trading at low price levels after the 2020 stock market crash, now could be the right time to buy a diverse range of them. Over time, they may improve an investor’s retirement prospects.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…Investing money in UK shares to double the State PensionA monthly investment of £250 in UK shares could lead to a worthwhile passive income in older age. For example, the FTSE 100 has produced an annual total return of around 8% since its inception in 1984. Assuming the same rate of return in future, it would provide a portfolio valued at £240,000 over a 25-year time period.From that portfolio of £240k an annual withdrawal of 4% would mean a retiree can enjoy an income return of around £9,600. The State Pension currently amounts to around £9,100. So that would mean a doubling of the income received in retirement for anyone who relies on the State Pension in older age.Investing today to obtain a larger passive incomeOf course, not all investors will have 25 years through which to allow UK shares to produce a passive income that doubles the State Pension.However, the low prices on offer across the FTSE 100 and FTSE 250 suggest it’s possible to obtain even higher returns than the stock market has achieved on average in the past. After all, buying assets at low prices can mean there’s scope for significant capital appreciation over the long run.As such, buying stocks such as Taylor Wimpey, Vodafone and Tesco could be a shrewd move. All three companies have been disrupted by the coronavirus pandemic. But they appear to have the financial strength to overcome short-term challenges to benefit from a likely stock market recovery. Similarly, companies such as Lloyds and easyJet, while at the riskier end of the investment spectrum, could deliver sound recoveries in the long term after what has been a difficult 2020.Taking a long-term viewClearly, UK shares will take time to produce a passive income that reduces a retiree’s reliance on the State Pension. However, the past performance of indexes such as the FTSE 100 and FTSE 250 suggests a stock market recovery from present woes is very likely. That’s despite continued economic uncertainty that may be ahead in the short run.By investing money in undervalued shares today, and holding them even during challenging economic times, an investor can enjoy a growing passive income. One that means they can enjoy greater financial freedom in retirement than that provided by the State Pension. Peter Stephens owns shares of easyJet, Lloyds Banking Group, Taylor Wimpey, Tesco, and Vodafone. The Motley Fool UK has recommended Lloyds Banking Group and Tesco. 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.last_img read more

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IAG and easyJet shares: should I buy for 2021?

first_img International Consolidated Airlines (LSE: IAG) and easyJet (LSE: EZJ) are two shares popular with value investors right now. In recent weeks, both airlines stocks have featured in Hargreaves Lansdown’s list of most purchased stocks.The share prices of both IAG and EZJ have risen since November. And, looking ahead, I think there’s a chance they could continue to rise. That said, these are not stocks I’d buy for my own portfolio today. Here are two reasons why.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…IAG and EZJ shares: near-term challengesFirstly, I expect the airline industry to continue experiencing challenges in the near term. This could create setbacks for companies such as IAG and easyJet.Just last week, the International Air Transport Association (IATA) – a trade association of the world’s airlines – said that forward airline bookings have weakened at the start of 2021. The IATA warned the situation is likely to get worse before it gets better.According to IATA’s chief economist Brian Pearce, the industry saw some “modest improvement” in bookings immediately after the vaccine news in November. However, that trend was reversed towards the end of December and into the first few days of 2021.“We’ve actually seen quite a sharp drop-off in bookings, which means that the immediate outlook looks pretty challenging,” he said, citing the impact of spiking virus cases and the introduction of further travel restrictions by governments around the world.Pearce stressed that while the performance of the financial markets and airline stocks suggests Covid-19 is over, in reality, it isn’t. “We can see light at the end of the tunnel but it’s still some way away, and the situation is likely to get worse first.”This outlook leads me to believe IAG and easyJet shares could be volatile in the near term.Warren Buffett doesn’t like airlines stocksSecondly, history shows that airline stocks such as IAG and EZJ are generally not good long-term investments. Their share prices can enjoy periods of strength at times, however, more often than not, this share price strength is eventually reversed.There are a couple of reasons airlines don’t make good long-term investments. One is that, in the airline industry, many things can go wrong. A plane crash or terrorist attack can dramatically impact sentiment towards air travel. Meanwhile, higher fuel prices can hit profits.Another reason is that operating a fleet of aeroplanes requires an extraordinary amount of capital. Given the huge costs airlines face to keep their planes running smoothly, most don’t earn strong returns on their capital over the long term.Don’t take my word for it. Here’s a quote from Warren Buffett. “The worst sort of business is one that grows rapidly, requires significant capital to engender the growth, and then earns little or no money. Think airlines,” he said in 2007.Better stocks to buyGiven that both the short- and long-term outlooks are uncertain for airline stocks, I won’t be buying IAG or easyJet shares for my portfolio.All things considered, I think there are much better stocks to buy for the long term. 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. IAG and easyJet shares: should I buy for 2021? Simply click below to discover how you can take advantage of this. Like this one… 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. Edward Sheldon, CFA | Monday, 18th January, 2021 | More on: EZJ IAG 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” Edward Sheldon owns shares in Hargreaves Lansdown. The Motley Fool UK has recommended Hargreaves Lansdown. 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 Address See all posts by Edward Sheldon, CFAlast_img read more

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£2,000 to put to work? How I’d target a 1,000% return investing in shares

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. 4,656.61 Image source: Getty Images When targeting high returns from investing in shares, it’s unnecessary to take crazy risks. It may seem logical to pursue high-risk opportunities to make big percentage gains. But I see another way to achieve a decent outcome without flirting with ultra-speculative stocks.I can harness the power of compounding with a diversified portfolio instead. Compounding smaller percentage gains over time can produce an impressive outcome. And that principle is a cornerstone of my approach to investing.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…Compounding returns from investing in sharesEven this approach isn’t risk-free, of course. All shares carry an element of risk. However, I’m prepared to embrace some risk in pursuit of higher gains. Compared to saving cash, there’s the potential for better returns by investing in shares and share funds.The annualised return of the general stock market is often quoted as a high single-digit percentage. And I like to use 7% as an example. So I could put my £2,000 into tracker funds that aim to mimic the performance of the general market.If I can compound an average of 7% a year with trackers, the outcome would be decent. After 15 years the £2,000 would grow to just over £5,500. The overall return works out at 175%. But that’s short of the bigger outcome I’m looking for.As with all share investments, this isn’t a guaranteed outcome. But it’s surprising how much small improvements in the annualised returns can boost the compounding outcome. I can target higher returns than the general stock market delivers by investing in the shares of carefully chosen individual companies.Targeting higher annualised returnsI’d like to reach a 1,000% overall return, but I know I might not, even if I pick individual companies. So if I can compound an average of 10% a year, that would give me a return of around 350% in 15 years.  And compounding an average of 15% annually would increase my original investment eight-fold. But just say I did even better. The following table sets out what’s possible if I managed to compound an annualised return of 25% each year. Of course, achieving a return on my portfolio as high as that isn’t easy and it isn’t certain. But it’s possible. And aiming for decent compounded returns is probably a better strategy than pitching all my money into a single speculative, ‘crash or glory’ share. This table is also a good illustration of how compounding works. 3,125.00 Annualised Return (£) Total Return (£) Balance (3) 0 – Get the full details on this £5 stock now – while your report is free. 15 The table shows that after 11 years of compounding annualised returns of 25% I’d end up with a balance just above the 1,000% return I’m looking for. But the remarkable thing about the process is how absolute returns accelerate in size over time.If I keep compounding 25% for a further four years for a total period of 15 years, my balance would grow to almost £57,000. And on an initial investment of £2,000, that’s an overall return of more than 2,700%.OK, I’m not expecting to be that successful all of the time. But I’m trying! When it comes to investing in shares, I think this illustration is a powerful incentive for me to work hard with my investment strategy and share-picking. I also reckon it’s important to keep a close eye on my portfolio and monitor the news flowing from the businesses behind my shares. And if any company starts to underperform my expectations, I should sell up and look for a better investment to replace it. 500.00 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. 2,500.00 Our 6 ‘Best Buys Now’ Shares 625.00 4,103.52 2,882.81 Enter Your Email Address 4,882.81 976.56 54,843.42 11,368.68 1,906.25 11 781.25 Kevin Godbold has no position in any 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. 21,283.06 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. 2 Simply click below to discover how you can take advantage of this. Year 1,220.70 5 2,000.00 Kevin Godbold | Sunday, 28th February, 2021 £2,000 to put to work? How I’d target a 1,000% return investing in shares 56,843.42 6,103.52 23,283.06 3 1,125.00 1 – 3,906.25 See all posts by Kevin Godbold 500.00 4 FREE REPORT: Why this £5 stock could be set to surgelast_img read more

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