I will admit that now does not seem like the time to buy UK shares. The outlook for the economy is highly uncertain, what with Brexit and the coronavirus crisis dominating the headlines. However, research shows that acquiring the market’s best shares at times of uncertainty produces the best results in the long term.
The tricky part is finding these stocks. If it were easy to find the market’s best shares, investing would be a breeze.
That said, there are some hallmarks that all of the best companies possess, and it’s these hallmarks that I’m focusing on to find stocks for my portfolio.
Best shares to buy
The best-performing stocks over the long term tend to have strong balance sheets and durable competitive advantages. I believe a great example of a company that possesses both of these qualities is AstraZeneca.
This enterprise has a robust balance sheet, and patents protect many of its products. These patents give the group exclusive manufacturing rights for years, which means Astra can make substantial profits. What’s more, every year, the business invests billions of dollars in developing new products to sustain its product portfolio. For me, these qualities prove that this is one of the best shares to buy now.
Another firm that seems to tick my boxes is Avast. This software provider helps consumers protect their devices from malicious software. Cybersecurity is a booming business, and the size of the sector is only likely to grow as the world becomes more reliant on technology. Like Astra, Avast’s product is protected from competition and, perhaps more importantly, consumers the world over trust the brand. To me, these qualities make the company one of the best shares to buy right now.
Global brands
Finally, I’ve been buying shares in alcoholic beverage giant Diageo recently. The owner of brands such as Guinness and Smirnoff has warned that it may see sales decline this year due to the pandemic. However, over the long run, I believe demand for the firm’s products will only increase.
I don’t know what’s in store for the UK economy over the next decade, but I’m convinced consumers will still be drinking Guinness a decade from now. And that’s without paying any consideration to the firm’s international operations, which account for the vast majority of profits. To help complement organic growth, Diageo has also been reinvesting capital to acquire new brands during the past few years. That’s why I believe this enterprise is one of the best shares to buy right now.
So overall, while the outlook for the UK and global economy might be highly uncertain, I think that by concentrating on high-quality stocks, I will be able to grow my wealth in the long run. These are just a handful of the firms that I reckon could be the best shares to own right now based on this view.