What do you and I need to do to become a stock market millionaire? Well recent history shows us that buying after market crashes is a particularly effective way to get rich from UK shares.
Growth in the number of Stocks and Shares ISA millionaires over the past decade has been truly staggering. It’s estimated that around 1,000 Britons have made a million or more by buying UK shares through one of these tax-efficient investment products. If true, this is up fivefold from the 200 or so ISA millionaires that Hargreaves Lansdown said were knocking around just four years ago.
It’s no coincidence that the number of Stocks and Shares ISA millionaires spiked as prices of UK shares exploded in the decade following the 2008/09 stock market crash. Buying stocks at low prices during tough times, and then watching them balloon in value as economic conditions improve, is a brilliant way to turbocharge your shareholder returns. And the 2020 stock market crash allows you and I do the same as those savvy millionaires did in the 2010s and get rich from rebounding share prices.
2 of the best UK shares to buy
There’s a broad array of top London-listed stocks that are on my personal watchlist following the market crash. Let me talk you through some of the best UK shares I think are too cheap to miss today:
- CVS Group is fractionally lower from levels recorded just before the stock market crash. This leaves it trading on a rock-bottom forward price-to-earnings-growth (PEG) ratio of 0.6. And it’s a reading that fails to reflect the rate at which the animal care market is growing in the UK. Last month the veterinary services provider said that revenues were “comfortably ahead of the prior year” in the 12 months to June. This is despite the mass closures of its surgeries as part of broader Covid-19 lockdowns. I’m encouraged to buy more of this stock for my ISA following this reassuring release.
- Okay, AstraZeneca’s share price is actually up in 2020 despite the stock market crash. But at current prices, the medicines maker’s shares are still too cheap to miss, I feel. They also trade on a forward PEG ratio of below 1. And the FTSE 100 firm carries a meaty 2.5% dividend yield to sweeten the deal. I’d buy it today as sales of its new medicines rip higher (up 42% in the first half), and particularly so in white-hot emerging markets. Revenues in these territories jumped more than 70% between January and June.
More bargain stocks to help you make a million
AstraZeneca and CVS Group are just a couple of the ‘too-cheap-to-miss’ UK shares I’m thinking of buying today. There are scores of other top-quality stocks out there that are on my watchlist following the stock market crash. And The Motley Fool’s huge library of special reports can help you dig them out and possibly even make a million.