My top 5 UK shares to buy for 2022

Ahead of the new year, I have been searching for top UK shares to buy in 2022. 

I am looking for companies that have the potential to weather whatever the world throws at them in the year ahead. I also what to acquire stocks with attractive growth prospects for the next three to five years. 

With that in mind, here are my top five shares to buy for 2022. I would not hesitate to add the stocks below to my portfolio. 

Shares to buy for 2022

The first company on my list is BP. Shares in this oil and gas giant appear to be hated by the market. But I believe that presents an opportunity. They look cheap compared to the firm’s potential in the year ahead and for the next decade.

As BP invests more in its renewable energy business, I reckon earnings will continue to expand, and the market’s opinion of the corporation will change. The most considerable risk to the firm’s business model is the threat of falling oil prices, which I will be keeping an eye on going forward. 

On that note, I also want to add XP Power to my portfolio in 2022. This firm designs and manufactures power transformers for businesses worldwide. Demand for these components is growing as renewable energy investment around the world balloons.

XP is already reporting growing demand for its products, and management is optimistic about the future. The biggest challenge the firm will have to overcome is competition for customers in its end markets. 

UK shares for rebuilding

I believe renewable energy will be a big theme for the next decade. Looking at the spending and capital investment plans of corporations and countries around the world, it seems as if companies with exposure to the industry will see massive demand for their services in 2022 and beyond. 

On that basis, I would also buy Antofagasta. This mining group is one of the world’s largest producers of copper, a critical component of most renewable energy systems. Some projections suggest that copper supply will have to rise by a third over the next decade to meet the demand from the green energy sector.

Prices may increase as well. That is why I want to buy some exposure to this important sector, although mining is not the greenest industry itself. The risk the company faces is that of sanctions against polluters.

I also want to buy some exposure to the construction market in 2022. My top picks are the building materials supplier CRH and building contractor Balfour Beatty. I think these firms offer exposure to the two most important parts of the industry.

Still, while I am expecting big things from builders in 2022, I am wary that this industry is usually the first to feel the pain in any downturn. This is the most significant risk facing their recoveries.