UK shares have rallied strongly over the past few weeks. The development of not one but three potential coronavirus vaccines has dramatically improved investor sentiment. However, the pandemic is nowhere near its conclusion just yet.
The global economy is still reeling under rolling lockdowns. Therefore, I think there’s still a strong chance we could see another stock market crash before the crisis resolves itself. And there are a couple of investments I want to snap up if we do see another significant decline.Â
My watch list of UK shares
There are a couple of businesses that have stood out to me over the past 12 months. Despite the pandemic, these companies have continued to register sales and earnings growth. In my opinion, if these operations can grow sales in one of the harshest business environments in recent memory, they should power ahead when the economy begins to recover.
Unfortunately, their strength means investors have pushed the stocks higher. That’s why I’m waiting for the next stock market crash to buy these stand-out stocks.Â
So, which companies are on my watch list?Â
Well, two of the best businesses in the FTSE 100, in my opinion, are Bunzl and Halma. Both operations follow a similar business model. They are consolidators, which means they buy and integrate small businesses. Their track record of doing this is impressive.
The two firms have acquired hundreds of small businesses over the past few decades. When they buy out the former owners, they can use their size to cut costs and achieve improved economies of scale. With hundreds of more potential acquisitions in the pipeline, I think both groups can continue on this course for many decades to come.Â
A company that exhibits similar qualities, which also sits on my watch list of UK shares, is insurance group Admiral. There are two main reasons why I like this enterprise.
First, it’s one of the most efficient insurance corporations in the UK. By keeping costs low, it can provide deals to customers they can’t find elsewhere. Second, the company’s in the process of building an overseas business. As the UK insurance market is already saturated, Admiral may be able to improve its growth potential dramatically by expanding overseas. That’s why I think buying the shares in the next stock market crash could be a good decision.Â
Stock market crash bargains
Three other UK shares I’d like to buy in the next market downturn are all in the same sector. Glencore, BHP and Rio Tinto are the world’s largest commodity producers and traders. I think these firms are going to have an outstanding couple of years.
The demand for essential commodities, such as iron ore and copper, is already growing and set to grow further as governments around the world pursue massive economic stimulus plans.
Glencore, BHP and Rio Tinto are all sector leaders. That suggests they’re going to benefit more than other producers from this boom. As a result, if the shares are acquired after a stock market crash, investors may see substantial returns.