Stock market crash: I’d use Warren Buffett’s tips to buy UK shares to get rich in a recovery

 

Stock market crash: I’d use Warren Buffett’s tips to buy UK shares to get rich in a recovery

first_img Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Buying UK shares after the 2020 stock market crash could prove to be a worthwhile long-term move. Indexes such as the FTSE 100 and FTSE 250 have a long track record of delivering recoveries after their declines. Meanwhile, investors such as Warren Buffett have previously used market declines to generate high returns in a subsequent rally.As such, by following Warren Buffett’s views on buying high-quality companies at distressed prices and holding for the long term, it is possible to generate strong capital returns in a long-term stock market recovery.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential...Buying high-quality UK shares at cheap pricesMany UK shares currently trade at cheap prices after the stock market crash. However, not all of them are likely to make sound investments. For example, investor sentiment may be weak towards businesses that have weak balance sheets or that lack a competitive advantage versus their peers. Such companies may deliver disappointing financial and share price performances even in a stock market recovery.Similarly, some high-quality companies may trade at prices that do not leave investors with a margin of safety. Their stock prices may have rebounded following the market crash so that they trade for what they are worth. Or even for a premium to their intrinsic value. In such scenarios, there may be a lack of scope for capital growth over the long run.As such, following Warren Buffett’s ideas on investing money in high-quality UK shares at cheap prices could be a sound move. In other words, a combination of a high-quality business and a cheap share price can be a buying signal. Although such companies may be relatively hard to find among UK shares at the present time, they may prove to be among the strongest performers in a stock market recovery.Warren Buffett’s long-term approach to investing moneyEven though history suggests that a stock market recovery is likely to take place after the 2020 crash, UK shares may yet experience further challenges in the short run. For example, risks such as the coronavirus pandemic and Brexit are likely to remain in place over the coming months. They may cause investor sentiment to weaken after its recent improvement.Therefore, following Warren Buffett’s lead in taking a long-term approach to investing money could be a sound move. As mentioned, the FTSE 100 and FTSE 250 have always previously recovered from their declines to post new record highs. While it may take some time for this outcome to take place following the 2020 stock market crash, it seems likely to occur in the coming years.Through buying today’s high-quality UK shares at cheap prices, and holding them for many years, it may be possible to follow Warren Buffett and beat the stock market over the long run. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Our 6 'Best Buys Now' Shares Simply click below to discover how you can take advantage of this. I'm sure you'll agree that's quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What's more, we firmly believe there's still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we're giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Peter Stephens | Sunday, 22nd November, 2020 Image source: The Motley Fool Stock market crash: I’d use Warren Buffett’s tips to buy UK shares to get rich in a recovery Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we're offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our 'no quibbles' 30-day subscription fee refund guarantee. “This Stock Could Be Like Buying Amazon in 1997” Enter Your Email Address See all posts by Peter Stephenslast_img

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