UK share markets are edging higher again as hopes over the economic recovery improve. Things could unravel quickly, however, as the Covid-19 pandemic rolls on and other worries like trade wars and soaring inflation linger. But as a long-term investor, this hasn’t stopped me in my quest to find the best stocks to buy for my Stocks and Shares ISA.
Extreme share price turbulence due to social, economic or political events is nothing new. Yet history shows us that UK share prices always roar back following such crises. This is why the average long-term investor enjoys a handsome (if not guaranteed) average annual return of 8%.
I’ve already invested in Keywords Studios in recent days. Here are three more of what I feel are some of the best stocks to buy too. Like other UK shares I own, if I had a lump sum to invest, I’d buy them with a view to holding them for at least a decade.
On Cloud 9
I believe that the rise of home-working in the wake of last year’s Covid-19 outbreak presents good investment opportunities. And I’d do this by investing in Iomart Group (LSE: IOM). This a UK share that offers cloud computing services through its network of data centres spanning Europe, North America and Asia-Pacific.
A new BBC survey reveals how companies like Iomart could be some of the best stocks to buy to ride the digital revolution. More than 80% of the firms that were surveyed said they would “embrace a mix of home and office working”, the broadcaster said. Employees of these firms would be “encouraged to work from home two to three days a week”, the BBC added. The 50 companies that were questioned employ a total of 1.1m people, a figure that illustrates the huge revenues potential for companies that make remote working possible.
Bear in mind though, Iomart has some very big industry rivals. This means that it faces significant pressures when it comes to both product price and quality. The cloud computing market is expanding rapidly, but this UK share isn’t totally without risk.
One of the best property stocks to buy?
I also believe that Grainger (LSE: GRI) could be another top UK share to buy right now. I certainly believe that the professional landlord is one of the best property stocks to buy as rents in Britain go from strength to strength.
A report by estate agency Savills suggests that average rents will rise 17% during the five years to 2025. It’s a prediction that reflects the expectation that tenant demand should continue outpacing property supply, exacerbated by the large number of buy-to-let landlords leaving the sector due to increasing red tape and higher tax charges.
It’s true that changes to the regulation of the rentals market could hit Grainger’s profits further down the line. But right now, I think it’s a great UK share to buy for the next decade.