£10k to invest? I think buying cheap UK shares today could help you beat the FTSE 100

first_img Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Peter Stephens | Saturday, 3rd October, 2020 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 Stephens 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. Following the stock market crash, a wide range of cheap UK shares are currently available to buy. Although they may face uncertain near-term outlooks in many cases due to risks such as coronavirus and Brexit, their long-term growth prospects appear to be sound.As such, building a portfolio of undervalued shares today with £10k, or any other amount, could be a sound move. Historically, buying stocks at low prices has provided scope for strong capital gains. Doing so could mean that you outperform the FTSE 100 in 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…Buying cheap UK shares todayWhile some cheap UK shares deserve their low valuations, others may be suffering from weak investor sentiment towards the wider stock market. For example, some businesses have solid balance sheets and the right strategies to adapt to changing consumer tastes. However, risk aversion among investors may mean that they trade at low prices compared to their historic averages.In such cases, there may be wide margins of safety on offer that can ultimately translate into strong capital growth in the coming years. Certainly, the near-term prospects for many businesses are challenging. But, in a number of cases, these risks appear to be adequately priced in from a long-term standpoint. This could mean that now’s the right time to build a diverse portfolio of undervalued shares that has significant capital return potential.Outperforming the FTSE 100Buying cheap UK shares today could lead to higher returns than those offered by the lead index over the long run. Although the FTSE 100 is often viewed as an index that has offered poor returns, it has delivered an annualised total return of around 8% since its inception in 1984. This is significantly higher than the returns of other mainstream assets. It’s also roughly in line with the performance of other large-cap indexes across the world.Certainly, much of those gains have been from the reinvestment of dividends. However, with many shares currently offering high yields, the index’s future may be more positive than many investors currently believe. Therefore, it may be reasonable to assume it can continue to offer total returns that are in the high single digits on an annualised basis.Through buying a selection of cheap UK shares today, you could benefit from the stock market’s recovery prospects. It has always posted new record highs following its downturns. This suggests a similar outcome is likely to take place following the current crisis. As with any asset, buying at a cheap price can be advantageous when it comes to long-term returns.With many large- and mid-cap shares currently trading on low valuations, now could be the right time to start buying high-quality companies that are undervalued by investors after the recent stock market crash. “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. Enter Your Email Address Our 6 ‘Best Buys Now’ Shares Simply click below to discover how you can take advantage of this. £10k to invest? I think buying cheap UK shares today could help you beat the FTSE 100last_img

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