However, I believe now could be a great time to buy shares in great UK companies. You just have to pick carefully. Here’s what I’d buy now.

Britvic

Britvic (LSE: BVIC) shares have been on a bit of a downward spiral in the year-to-date, dropping by 6%. This fall in share price means the price-to-earnings ratio is just 14, which I think makes now a great buying opportunity for UK based investors.

The drinks manufacturer has strong brands in its portfolio, such as Robinsons, R Whites and J2O. It also has exclusive agreements to make and distribute drinks on behalf of Pepsico. To give an idea of the size of the company, every minute in Great Britain 17,600 Britvic drinks are bought.

The business has been impacted by the coronavirus outbreak. In its Q3 trading update, which covers the period to the end of June, revenue declined by 16.3% on last year. However, a drop in out-of-home consumption was offset by strong growth in at-home consumption. This meant that the company saw market value share gains in all business units.

As we’re slowly seeing life turn back to normal, I don’t think it will e btoo long before Britvic’s revenue reaches pre-coronavirus levels. I’d buy this UK share now while it still looks cheap.

Another great UK share to buy?

Games Workshop (LSE: GAW) is a company I love, mainly for its unique products, high margins and loyal customer base. If you aren’t familiar with Games Workshop, the company makes fantasy miniatures and licenses its product out. 

It is often seen by prospective buyers as a growth gem. The UK-based company’s share price has risen 51% in the year-to-date, despite temporarily closing its doors due to Covid-19. In its latest results, released last month, the company posted a 10% jump in profit for the year ending 31 May. Its sales were up by 5% in the year.

Despite its rapid growth — 1,500% in the past five years — I don’t think it’s too late to buy Games Workshop shares. Although currently on the expensive side, the opportunity to license its product out offers a chance to push its revenue growth further. The business also opened 23 new stores in the financial year.

Although I’d rather buy the shares at a much cheaper level, I don’t think this is a realistic prospect. Following the coronavirus crisis, I think that Games Workshop has proved it is one of the more resilient UK businesses, and for that reason, I believe its shares are worth buying at today’s price.

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T Sligo has no position in any of the shares mentioned. The Motley Fool UK has recommended Britvic. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

However, for the prudent investor, now could be a great time to buy UK shares. The FTSE 100 has fallen by 18% in the year-to-date. Therefore, I believe it is possible to buy shares in quality companies that should benefit from the economy’s likely recovery.

Here’s where I’d start.

Investing with smaller sums

If you’re investing with smaller sums, you might struggle to build a well-diversified portfolio.

Diversification is especially important at the moment when it’s difficult to predict how different businesses will react to the coronavirus after-effects.

Although it’s difficult for investors to build up a diversified portfolio with small sums, it can be done by investing in an index fund. Index funds aim to track the performance of a chosen market. UK investors could buy shares in a fund that tracks the FTSE 100, for example. You can usually do so with a modest lump sum, such as £100. This will create diversification with ease. 

If you invest at regular intervals, you can take advantage of the markets cycles by pound-cost-averaging. This means your money would be invested at both the high and low points of a market cycle.

Although I think index fund investing is a great way to buy shares with low sums, to supercharge your returns, it might be best to buy individual shares.

A great UK share to buy?

When I think of great UK shares, there is always one company that springs to mind. That company is Unilever (LSE: ULVR), with fantastic brands in its portfolio such as Marmite, Ben & Jerry’s and Lynx.

The reason why I rate Unilever shares so highly is due to the low-cost nature of its products. When times are tough, I’m convinced that people will still be purchasing these goods.

This brand loyalty also offers Unilever another benefit. The company can nudge up the prices of its goods, improving profit.

In its latest results, released in July, the company reported that underlying sales fell by 0.1% in the six months to the end of June. Although this might sound disappointing, it was better than the market predicted. The disruption from the closure of restaurants, cinemas and pubs was offset by a surge in sales of goods that can be consumed at home.

As fellow-Fool Paul Summers notes, performance in North America was a highlight for Unilever, with underlying sales growth in the region hitting 9.5% in Q2 

With its better-than-expected results, I was a bit surprised to see that its price-to-earnings ratio is just under 20, even though its share price has jumped by roughly 5% in the year-to-date. For that reason, I believe that right now offers a chance to buy shares in this great UK company at an irresistible price.

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T Sligo has no position in any of the shares mentioned. The Motley Fool UK has recommended Unilever. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

For long-term buyers, I think the following companies could be the best FTSE 100 shares to buy and hold now.

Rightmove

On the face of it, Rightmove (LSE: RMV) shares might seem a bit on the expensive side. Currently, the stock is trading with a price-to-earnings ratio of 31, with only a modest decrease in share price of almost 2% year-to-date. However, with its competitive edge against rivals, I think Rightmove shares are still worth investigating further.

In these times, it’s worth remembering Warren Buffett’s number one rule of investing: “never lose money.” It’s sometimes better to pay a premium for a wide margin of safety. FTSE 100 shares with an edge against rivals often perform the best in the index.

Of course, Rightmove has been impacted by the coronavirus outbreak. In its half-year report, released 7 August, the business announced that revenue was down by 34% to £94.8m. Profit declined by 43% to £61.7m.

Although these figures are worrying, potential investors’ concerns might be eased when considering that much of the year-on-year reduction in revenue is due to Rightmove’s generous 75% discount it offered customers between April and June. As things start to slowly turn back to normal, I’d expect Rightmove’s revenue to return to previous levels.

If you’re looking for a house to buy, I imagine the first place you’d look would be Rightmove. This is evidenced by its market share of time on-site at 88%. Most estate agents can’t miss out on the opportunity to list properties on Rightmove.

The best FTSE 100 share to buy now?

Another share worth examining is Auto Trader (LSE: AUTO).

Like Rightmove, I think this is the first place people will look when buying a used car. In my eyes, this competitive edge makes it one of the best FTSE 100 shares to buy.

Unsurprisingly, with the closure of garage forecourts during lockdown, Auto Trader’s share price has dropped by almost 4% year-to-date. This makes its price-to-earnings ratio 25.

Like Rightmove, in light of the coronavirus outbreak, Auto Trader was generous to its retail customers. It held off charging them for advertising during April and May and gave a 25% discount in June.

Traffic to the website has increased lately, with cross-platform audience numbers up by 28% in the first three weeks of June. This might be because commuters are looking at alternatives to public transport.

With its share price on a downward spiral this year, I think now could be one of the best opportunities to buy this FTSE 100 share.

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T Sligo has no position in any of the shares mentioned. The Motley Fool UK has recommended Auto Trader and Rightmove. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Reaching £1m is an ambitious target, but one that I feel is achievable. Of course, it will take time and patience. 

Is making a million from buying UK shares possible?

Now could be a great time to start investing in cheap shares. The low valuations of some FTSE 100 shares and the recovery prospects for the economy could ultimately return wealth to investors.

As a rough gauge, an 8% annualised return from the FTSE 100 should be achievable for long-term investors. With this return, making £1m from the market isn’t wildly unrealistic. It could be entirely achievable for those with some cash to spare.

Buying cheap UK stocks

With an 8% annualised return, investing a regular sum like £750 a month in UK shares would take 30 years to reach the goal of £1m. It’s interesting to note that, in this example, the deposits would only amount to £270,000. The balance is made up of interest gained on the investment over the period.

Increasing the regular sum to £1,000 a month will get you there quicker, cutting the time taken to reach £1m by four years.

Although many UK shares are trading at low valuations on the FTSE 100, there is sometimes a good reason. These could include weak balance sheets or a bleak outlook. It pays to be careful.

Worried about investing in FTSE 100 shares?

If you’re a long-term investor, the chances are that you’ll be investing through numerous market crashes. In the past, there’s usually been one roughly every decade. This is probably enough to scare some potential investors off.

But I think this should be seen as an opportunity to buy some of your favourite UK shares at cheap prices.

An actual realised loss on the stock market is only made once the shares have been sold. If the markets dropped, but the fundamentals of the businesses I have a position in haven’t changed, then I probably wouldn’t sell my holdings. This is just a paper loss.

It’s worth keeping in mind that every time the FTSE 100 has fallen in value in the past, UK share prices have eventually recovered.

Have faith

When legendary investor Warren Buffett bought his first shares in 1942, America was suffering in the Pacific war zone. As he later said: “Each day’s headlines told of more setbacks. Even so, there was no talk about uncertainty; every American I knew believed we would prevail”.

Back then, Buffett had faith in the American economy. Today, I have faith that the FTSE 100 will recover. By buying UK shares now, I believe long-term investors will reap the rewards.

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T Sligo has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

The problem with Bitcoin

The FTSE 100 has fallen this year, but what’s happened to the value of Bitcoin? The price of the cryptocurrency has surged by 39%.

Unlike FTSE 100 shares, Bitcoin has no intrinsic value. When you buy a share, you are buying a portion of a company. You have an interest in how every part of the operation is run, from the products and services it provides to the people managing the business and working there.

With Bitcoin, you have an electronic token. Its performance is dependent purely on supply and demand. To me, that’s speculation, not investing.

FTSE 100 dividend shares: investing for income

In this market, FTSE 100 investors may favour buying cheap shares for the growth potential and to benefit from the economy’s likely long-term recovery. Especially in light of multiple companies slashing, suspending or cancelling dividend payments this year.

However, there are also investors buying shares in companies that previously offered generous dividends while they are trading at a cheap valuation. When the pandemic ends, they hope these FTSE 100 businesses will reinstate dividends at previous levels.

By buying such dividend shares, it’s possible to build up a second passive income, potentially helping you reach retirement that bit earlier. Bitcoin doesn’t offer investors this prospect.

Cheap FTSE 100 shares

Of course, the drop in the FTSE 100 means there are plenty of cheap shares available to invest in. But where do you start?

During the coronavirus outbreak, we’ve seen whole industries on the brink of collapse. Although it’s a great time to pick up a bargain, there’s a real danger that we’ll still see some more companies fold.

One way to try to mitigate this risk is by diversifying your portfolio between companies and industries. Geographical diversity can also be built in, which should help lower the damage caused by the rise of geopolitical tensions that we’ve seen in recent years.

If you’re investing with smaller sums, buying into an index fund might be a good option. These types of funds aim to track a chosen index, like the FTSE 100. The fund should match the performance of the index over time. By buying into an index, you will be buying a portion of those cheap shares too.

These are unusual times, but the opportunity to buy cheap FTSE 100 shares doesn’t present itself often. Although the market has fallen, I think it will eventually recover. I don’t know about you, but I won’t be wasting this opportunity.

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T Sligo has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

However, it is not all bad news. The FTSE 100 index has fallen by roughly 19% in the year-to-date. I believe this has opened up an opportunity to buy shares in some of the best UK companies.

With most garage forecourts reopened, I thought now might be the best time to examine Auto Trader (LSE: AUTO) to see if it’s worth buying the FTSE 100 company’s shares.

One of the best FTSE 100 shares to buy now?

Warren Buffett likes to buy companies with a strong competitive edge — or moat — against its rivals. I’m not going to disagree with arguably the world’s greatest investor, so it tends to be a quality I seek out in shares too. In the past, some of the best FTSE 100 shares have been those well-protected against the competition.

That’s why Auto Trader has got my attention. It’s the first place I look when I’m considering buying a car, and I’d hazard a guess and say that most other people would check its website too.

Auto Trader’s share price has dropped by approximately 10% in the year-to-date. This makes the price-to-earnings ratio of the stock 24. The shares aren’t cheap, then. But are they worth buying?

Time to buy Auto Trader shares?

It’s been a difficult year for the motor marketplace. Uncertainty surrounding Brexit and what Auto Trader calls “significant environmental and technology-driven changes to the automotive industry” have been huge hurdles for the company. And that’s before we consider the devastating effects the coronavirus outbreak has had on FTSE 100 shares.

Unsurprisingly, the closure of car showrooms had a negative effect on Auto Trader’s revenue. In fact, it stomached the blow and didn’t charge its retail customers for advertising during April and May, and offered them a 25% discount in June.

What is surprising is the level of traffic the platform is receiving. In the first three weeks of June, Auto Trader had record levels of audience, with cross-platform visits up by 28% compared with the same period last year. With coronavirus fears putting people off public transport, buying a used car might be seen as a safer alternative.

The company has proved its resilience in this crisis. To raise extra cash, the company issued new shares. This raised £183m.

In addition to the business’s resilience, investors should be excited about its margins. Once a new customer is acquired, there is little in the way of additional capital outlay. In its full-year results at the end of March, the operating profit margin was reported to be 70%, up 1% on the prior year.

With the decline in its share price, I think that Auto Trader shares could offer value for long-term FTSE 100 investors who are betting on the economy’s recovery.

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T Sligo has no position in any of the shares mentioned. The Motley Fool UK has recommended Auto Trader. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

However, there is also a risk of danger. Most industries have been negatively affected by the coronavirus pandemic. Choosing the wrong stock could mean losing money.

I’ve identified two UK shares that I would buy and hold for the long term. I believe they will benefit from the economy’s likely future recovery.

A great UK share to buy and hold now?

When Greggs (LSE: GRG) reopened stores after the lockdown measures were eased, many branches had queues around the block. People were excited to buy its baked products. Such is the love the UK has for its sausage rolls, including the plant-based version.

However, the Greggs share price has fallen by 37% year-to-date, making its price-to-earnings ratio just 16. I think this indicates it is an undervalued UK share and could be worth buying.

We’ll need to wait until the 28 July to see how sales have been affected, when the company releases its latest results for the 26 weeks to 27 June. I imagine the reading will be bleak, as it will cover the imposed UK lockdown period. I don’t doubt it will take a while for sales to return to normal levels. However, I have hope that the market might be pricing Greggs a tad pessimistically.

If investors want to snap up the shares before the latest results are released, it is also worth noting that reopened stores have reduced the range of products being offered, to help with meeting social distancing guidelines. 

However, if you are feeling a bit bullish about Greggs’ sales since the reopening of its stores – like I am – this could be one of the best UK shares to buy now before its stock price potentially surges.

ITV share price

While many industries have struggled during the coronavirus lockdown period as people stay at home, one area that has flourished is streaming services. Fellow-Fool Jabran Khan notes that it’s estimated that there were nearly 6m new subscribers to streaming services during the lockdown period.

This might explain why, the ITV (LSE: ITV) share price, has dropped by roughly 58% year-to-date. ITV is more of a traditional TV offering and UK subscribers are buying into online viewing platforms.

As budgets come under strain, advertising revenue will be affected by the coronavirus outbreak. The drop in the studio segment of the business will be due to a halt with much of the production work.

I think the market is pricing ITV unfairly. It has an extensive back-catalogue of shows and formats it can sell or license. The business is also making an effort with its own ITV Hub and launching Britbox with the BBC.

For long-term investors, now could be a chance to buy shares in a great UK company right now, while the stock price is cheap.

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T Sligo has no position in any of the shares mentioned. The Motley Fool UK has recommended ITV. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

However, just because something is cheap, it doesn’t mean it’s a bargain. Often there’s a very good reason a stock is cheap, and it should be avoided.

These turbulent markets often favour long-term investors. These investors have the time to ride out short-term fluctuations and to take advantage of the FTSE 100’s likely recovery.

I’ve identified two FTSE 100 stocks that I think might be good shares to buy and hold.

Reckitt Benckiser

In the current market, I don’t think there’s anything better than a company selling small-value consumable items. I see these sorts of companies as relative safe havens, particular given the volatility in the market. I can’t imagine the majority of customers quibbling about spending a few pence extra on their favourite branded items such as those offered by Reckitt Benckiser (LSE: RB).

Reckitt Benckiser’s share price is a testament to its defensive capabilities. Unlike the FTSE 100, its share price has risen by roughly 25% year-to-date. This gives the stock a price-to-earnings ratio of 22. Far from cheap, then.

But with an extensive list of household brands in its portfolio, like Vanish, Durex, and Gaviscon, I think Reckitt Benckiser has an in-built economic moat against rivals. I believe this is worth paying a bit extra for.

With various hygiene products in its portfolio, like Harpic and Dettol, the company will probably see higher revenue for some time to come.

In any case, I think Reckitt Benckiser has proven that it’s a defensive gem in the FTSE 100 and could be a good share to buy and hold.

A cheap FTSE 100 share?

Unlike Reckitt Benckiser, the Legal & General (LSE: LGEN) share price looks cheap to me. Year-to-date, the FTSE 100 financial giant’s share price has slumped 27%. This reduction in price means the price-to-earnings ratio is just 8.

Like most of the FTSE 100, Legal & General has been impacted by Covid-19. However, as fellow-Fool Rupert Hargreaves notes, due to an impressive jump in new business, the company has suffered less than others.

Unlike other companies in the UK index, Legal & General has committed to its dividend. With other FTSE 100 businesses slashing, suspending, or cancelling dividends, this should get potential investors interested. However, what’s seriously impressive is Legal & General’s prospective dividend yield, which is currently 7.5%. I think this indicates that, despite the coronavirus, the business is financially robust.

With Legal & General’s seemingly cheap share price and generous dividend, I think it could be one of the best FTSE 100 stocks to buy and hold right now.

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T Sligo has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Of course, with falling share prices, it’s often difficult to determine whether something is cheap for a reason. I think it’s best to be cautious. With that in mind, here are two shares I’d buy and hold for the long term.

The best UK share to buy now?

I love consumable shares, especially when a business sells low-value items that customers always need. Unilever (LSE: ULVR) is probably the best UK consumable company right now, with brands in its portfolio like Marmite, Ben & Jerry’s, and Lynx. Even in times of economic hardship, I think many of Unilever’s products will make it into customers’ baskets.

Unilever’s share price is roughly level year-to-date. This makes its price-to-earnings ratio just 18. I think this could signal that this is one of the best opportunities to buy shares in Unilever at a bargain price.

With Unilever’s strong list of products, I expect brand loyalty from its customers. In the future, I think this will enable Unilever to nudge up prices to further improve margins.

In turbulent times such as these, I think people will seek out shares in companies like Unilever, due to the dependable revenue and profitability the company normally generates.

Diageo 

For similar reasons to Unilever, I think that Diageo (LSE: DGE) shares are currently among the best in the UK. The company’s share price has fallen by 11% year-to-date. Its price-to-earnings ratio is slightly higher than Unilever’s, at 22. With that in mind, the shares can’t be classed as cheap, but I don’t mind paying a premium for a slice of a quality company.

The multinational drinks giant has been hit heavily by the various lockdowns implemented around the world. Unsurprisingly, the closure of bars, restaurants, and hotels has impacted revenues.

However, it’s not all bad news for Diageo. We are slowly seeing a return back to normal, with pubs and restaurants reopening. It might take a while for consumer confidence to return. When it does, I imagine they’ll be returning to their favourite drinks and companies like Diageo will benefit.

The company has a strong portfolio of beverages, including Guinness, Smirnoff, Johnnie Walker, and Baileys. This should ensure that the company has a drink when palates change.

The other thing that makes Diageo one of the best UK shares to buy is its generous dividend yield, which is currently about 2.5%. As my fellow-Fool Edward Sheldon notes, Diageo has notched up its dividend for 21 consecutive years. Edward thinks Diageo is unlikely to slash its dividend any time soon. I’m inclined to agree with him.

With pubs, restaurants and bars reopening, I think now is the time to buy Diageo shares and hold for the long term.

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T Sligo has no position in any of the shares mentioned. The Motley Fool UK has recommended Diageo and Unilever. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Year-to-date, the FTSE 100 has already fallen by 18%. I think this means that there are already many shares trading at a cheap valuation. Is it worth waiting for a hypothetical second market crash, or to buy shares now?

Second stock market crash

The prospect of a second market crash is far from certain. A future recession is now talked about as an expectation, and we already have indications on how the virus will affect businesses operations.

Declining consumer confidence will impact the economy, and will probably result in job losses. Of course, a lot depends on whether there will be a second wave of the coronavirus, in which case I imagine there will certainly be another market crash, sending FTSE 100 shares tumbling. However, the FTSE 100 index has had a bit of a rally recently, increasing by 24% since its low-point in March. 

With a deep recession potentially looming, you should hold off from buying shares, right?

Not necessarily.

Buying cheap FTSE 100 shares

I wouldn’t encourage buying shares in industries that have been on the brink of disaster since the coronavirus outbreak struck, like airlines or international travel companies.

However, I think there is an opportunity to buy cheap FTSE 100 shares if you’re being careful with your investments. There is a chance to buy resilient businesses with a competitive edge against rivals in this market. Companies operating in localised travel or selling cheap consumable items are ticking boxes for me at the moment.

In addition to the resilient companies already in a strong position, we should be aware that consumer habits will possibly change in the future. Other organisations will benefit from this situation.

As well as seeking out the opportunity to buy cheap FTSE 100 shares, there is another way that investors might be able to lessen their risk. This is by pound-cost-averaging, where a set sum is invested at regular intervals. By investing in this way, investments will be made when the market goes up and down. Over time the price paid for shares averages out.

Hunting shares

Would I wait for the next market crash before investing?

No. There are plenty of FTSE 100 companies still trading profitably. Some of these shares look cheap to me, and I feel the market is unfairly pricing them. As a long-term investor, I’m prepared to buy and hold shares for decades.

However, in these times, investors need to exercise caution. We could still be feeling the ramifications from the coronavirus for years to come. Surely we will see more businesses and industries suffer in the short term.

However, with lots of FTSE 100 shares looking cheap, I’d be buying shares now to benefit from the likely long-term recovery of the market.

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T Sligo has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.