The FTSE 100 and the FTSE 250 are both higher than they were a month ago. But there are still some really interesting — and good value — UK shares that I’d buy for my portfolio today.
Right now, there are four UK stocks on my radar. With a spare £500, I’d look to divide it into four lots of £125 and invest equally into each of them.
Experian
Top of my list is Experian. I think that this is a business straight out of the Warren Buffett playbook for investing.
Experian operates in an industry with limited competition. Its credit reports are a vital tool for lenders in evaluating the creditworthiness of borrowers.
The company’s business has high barriers to entry. It builds its reports by drawing on a huge database, which is nearly impossible to replicate.
Rising interest rates might slow the business down in the near future. But I think that this is going to provide me with an opportunity to buy shares at attractive prices.
Diploma
I’m also looking at Diploma shares. This isn’t a stock that gets much attention, but I think it could be a great investment for me.
Diploma is a collection of smaller businesses that focuses on the distribution of industrial components. It concentrates on niche markets, which helps protect it from competitors.
As a result, the company achieves huge returns on its fixed assets. Its most recent financial statements indicate that it generated £116m using £80m in property, plant, and equipment.
The stock is a little expensive at current prices. But the quality of the overall company should, I think, prevail over time.
Rightmove
I already own shares in Rightmove, but I’d buy more of them today if I had a spare £500. The company owns the UK’s largest property platform.
The platform’s size provides Rightmove with a huge competitive advantage. It generates roughly twice as many visits per month as its nearest competitor.
More visitors makes the platform a more attractive place for vendors to advertise. This attracts even more viewers.
A slowing property market might dampen interest in Rightmove’s services. But I don’t think that the slowdown in UK housing is likely to be enduring.
Endeavour Mining
Lastly, I’d buy shares in the Endeavour Mining. The company is a gold mining business with some of the lowest costs of production anywhere in the world.
The stock is 6% higher than it was a year ago. But I think that it’s trading at an attractive price nonetheless.
Gold prices are likely to be volatile over time. And this provides an element of risk with this type of investment – the company’s profitability is likely to fluctuate.
In my view, though, the company’s low production costs should mean that its business proves durable. That’s why I’d invest £125 of a spare £500 in shares of Endeavour Mining today.