Here at The Motley Fool, we are buy-and-hold investors. That means we’re on the lookout for UK shares we can buy and keep forever without having to worry about day-to-day share price movements.
I believe the best companies to keep forever are high-quality businesses. Specifically, companies with large profit margins, strong balance sheets and a competitive advantage.
There are not many of these firms around. However, today I’m going to highlight two of my favourite UK shares.
UK shares to buy for 2021
Some of the best-performing stocks of the past 12 months are companies that have benefited from the pandemic. Naked Wines (LSE: WINE) and Computacenter (LSE: CCC) are two of my favourite picks.
Naked Wines was formerly known as Majestic before the corporation sold off its bricks and mortar stores. Now it’s a pureplay online wine delivery business. The company’s decision to go online came at the right time as it has been able to continue to operate through the patchwork of restrictions the country has lived under for much of the past year.
According to the firm’s latest trading update, this has been a boon for its sales. Group revenues jumped 80% for the 26 weeks to the end of September. The number of new customers more than doubled during the period. Not many other UK shares can boast the same performance.
I reckon this should underpin Naked Wines’ growth in the years ahead. The firm has been able to broaden its range of customers substantially over the past 12 months, and it can hit these new users with sales and offers to drive repeat custom in 2021. With almost no competitors, Naked Wines appears to me to have a bright future.
Embracing technology
I think the same is true of Computacenter.
The IT services group has seen a jump in the demand for its services over the past year as the world has embraced technology in the pandemic. I think this has changed the way we work and interact with others for good.
That suggests Computacenter’s growth in 2020 was not a flash in the pan. Companies that embraced tech in 2020 will continue to use technology services, helping this business and other UK shares to build on their 2020 gains.
And if Computacenter can keep up with demand, it should remain the go-to business for these services. With return on capital employed — a measure of profit for every £1 invested in the organisation — of more than 22%, the group is one of London’s most profitable tech companies. With demand for these services set to remain high, I expect this to continue, translating into high total returns for investors for many years to come.
As such, I think Computacenter could be one of the best long-term growth buys on the London market right now. When owned as part of a portfolio with other high-quality UK shares such as Naked Wines, I reckon these stocks could help me build a sizeable financial nest egg.