I reckon investors like me should be wringing their hands with glee. Why? Because the financial markets are having a bit of a wobble and many quality UK shares have been dropping.
Great businesses, lower prices
That might sound like a self-destructive attitude to have. That’s especially as market down-moves often lead the value of my existing portfolio to decline. But the glee doesn’t arise because of a shrinking share account. It comes about because of the enhanced opportunity to buy the shares of great companies at lower prices.
Of course, to benefit I’ll need to scope back from the shorter-term gyrations of the stock market and hold shares with a longer time horizon. Whatever is spooking investors today will likely be forgotten about five and more years in the future. And when that happens, there’s every chance that my existing stocks will recover and my new ones will advance to reflect the underlying progress of their businesses.
But I’m not forgetting that shares can go down as well as up and all shares carry risks. It’s always possible that operational problems could build up within a business and cause me to lose money on a stock — even if I hold it for five years or more.
I’m prepared to embrace the risks though, in pursuit of the better returns than those I might get from other assets such as real estate (property) and cash savings. But key to successful stock investing is careful stock selection. Not all shares are worth buying and holding for the long term.
3 UK shares I’d aim to buy now
So that implies that it’s important for me to thoroughly research each stock opportunity before committing my hard-earned to it. And on that score, I’ve got a head start because of the several watch lists of promising stock candidates I keep. So, when opportunity arises — such as right now — I know where to focus my research.
For example, the recent share-price decline of international distribution and services company Bunzl attracts me. The business has been trading well and carrying on with its steady programme of organic and acquisitive growth. And it’s a similar story with soft drinks supplier Britvic, where City analysts expect an increase in earnings of around 23% in the trading year to September 2022.
But I’m also looking closely at meat-based food products supplier Cranswick. As well as its UK market, the company is experiencing success growing its export operation to Asia. Short-term operational disruption with this company looks like it’s creating a decent long-term stock opportunity for investors.
Nothing is guaranteed though, and a successful investment outcome isn’t certain just because I like the quality and value I’m seeing with these companies now. But I’m tempted to dig into the opportunities with some thorough research. And I’d aim to buy some of these shares for October and beyond.