We all dream of making a million pounds (or more) by investing in UK shares. I’m sure this is the very reason you’re reading this article right now. It doesn’t need to be just a far-fetched fantasy, though. This is because the 2020 stock market crash provides an excellent opportunity to get mega rich from stock markets.
I’ve continued to buy UK shares in my own ISA despite the uncertain macroeconomic environment. You and I aren’t going to make whopping returns on our investments if we’re not, well, investing. Stock market crashes are scary, sure. But they’re nothing new and over the long term they don’t stop the average UK share investor from making jaw-dropping profits.
Make a million
Studies show that long-term investors make an average return of between 8% and 10% per year. This is proof that stock market crashes don’t hinder investors’ chances of making monster returns. Those rates of return also show that you and I don’t need to spend a fortune on buying UK shares to make a handsome profit, either.
Let’s say that you’re 30 years old and spending £100 a month in something like a Stocks and Shares ISA. Based on that 8% to 10% calculation you can expect to make anywhere between £214,000 and £340,000 by the time you reach 65. That’s quite a handsome retirement pot for such little investment.
If you can afford to invest more then you could be knocking on millionaire’s row. Buying £300 worth of UK shares a month would do it over that sort of time frame. If you can’t afford to spend this much, though, you can always buy UK shares after a stock market crash to become a millionaire and ride rebounding share prices. It’s how the number of Stocks and Shares ISA millionaires exploded after the 2008–09 stock market crash.
3 top UK shares I’d buy in an ISA
There’s a galaxy of great UK shares that could help you make an ISA million. Hochschild Mining is one I’d happily buy for my own Stocks and Shares ISA. Profits at the silver digger should rise in the near term as the tense macroeconomic environment boosts demand for safe-haven precious metals. And industrial demand for silver should rise in the medium term and beyond as the economic cycle moves into recovery.
I’d buy Stocks Spirits Group as well because of rocketing spirits demand in its key territories of Central and Eastern Europe. It offers terrific value this September, too, because of its forward price-to-earnings (P/E) ratio of 13 times and bulky 3.9% dividend yield. And a chronic shortage of social housing in the UK makes Civitas Social Housing a possible millionaire maker. This UK share carries a near-5% yield for this financial year.
This is just a taster of some of the top UK shares that could help you make a million or more. And The Motley Fool’s epic library of exclusive reports can help you find even more.