10 UK shares I’d buy to double my money by 2025

With stock market recovery underway, UK shares are more likely to double investor money by 2025 if not earlier. Here are 10 of them. 

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

The stock market rally is proof that we as investors are euphoric about the Covid-19 vaccine. After months of distress, there’s finally a ray of light. We may not be at the end of the pandemic, but at least we appear to be at the beginning of the end. 

Preparing for uncertainty

Pandemic-hit UK shares have been some of the fastest risers in the current stock market rally. The bull in me reckons that they could even double my money invested today by next year.

The more cautious part of me, however, thinks that it’s also important to account for all the uncertainty in the air. 2021 may not be a smooth ride for the stock markets, much as we’d like the rally to continue endlessly. I reckon that Brexit, the possibility of sluggish economic growth and the fragile financial health of many companies could pose challenges. 

In line with this, it’s a good idea to be realistic about the gains possible across stock markets. So I’m considering a longer time-frame of five years. I reckon that by 2025 it’s quite likely that some will double my money. In terms of simple averaging, it implies 20% growth every year, which is a decent rate by any standards.  

My focus is on high-growth industries, though it’s by no means an exhaustive list. Two categories, in particular, appeal to me. These are as follows:

#1. UK shares and the online marketplace boom

Technology-driven apps that make our lives simpler are clear winners. Consider e-grocers like Ocado, real estate e-marketplace Rightmove, or even the food delivery app Just Eat Takeaway

If there was any doubt that the world was getting increasingly digital, I think 2020 has put it to rest. Even with some slowing down in their revenue growth as the UK opens up, I think over time they will gain.

Going digital also means that we’ll have far more deliveries at our doorstep than before. I think by now most of us have experienced the ease of Amazon shopping and even the vast array of stuff that can be bought online. I certainly have. 

This is set to increase demand for the packaging industry. And it so happens that not one but three FTSE 100 companies provide exactly these products. Stocks like Smurfit Kappa, Mondi, and DS Smith are ones to look out for. 

#2. Clean energy gets a push

Clean energy is another industry that’s set to make rapid strides in the next decade. The Scottish Mortgage Investment Trust, with big holdings in Tesla, is one UK share with a stake in clean energy. Industries associated with electric vehicles will also benefit. 

These include stocks like speciality chemical manufacturer Johnson Matthey, which is a component supplier for electric vehicle (EV) cells and Rio Tinto, which produces lithium, also a component in EV cells. 

A third one is the FTSE 100 miner Anglo American, which is now producing an electric mining truck, making it yet another reason to like the stock

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Manika Premsingh owns shares of Ocado Group and Rightmove. The Motley Fool UK owns shares of and has recommended Amazon and Tesla. The Motley Fool UK has recommended DS Smith, Just Eat Takeaway.com N.V., and Rightmove and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. 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.

More on Investing Articles

Investing Articles

£10k in savings? These 2 gems could make £832 in passive income

Jon Smith outlines a couple of dividend shares with an average yield above 8% that could enhance a passive income…

Read more »

Growth Shares

This major UK bank just updated the forecast for the Rolls-Royce share price

Jon Smith talks through an analyst forecast for the Rolls-Royce share price and explains why he thinks further gains could…

Read more »

Middle-aged white male courier delivering boxes to young black lady
Investing Articles

This FTSE 100 share looks like a Black Friday bargain for me!

Our writer explains why he recently took the opportunity to buy this ultra-cheap FTSE 100 share after its 39% year-to-date…

Read more »

Investing Articles

What will happen to the stock market in 2025? Here’s what the experts say

The UK stock market did well at the start of this year but has faltered towards the end. Our writer…

Read more »

Investing Articles

After plunging nearly 40%, I’m considering buying this bargain FTSE 100 stock

Paul Summers has been running the rule over one of the year's biggest FTSE 100 losers. Is a screamingly cheap…

Read more »

Ice cube tray filled with ice cubes and three loose ice cubes against dark wood.
Investing Articles

Just released: this month’s lower-risk, higher-yield Share Advisor recommendation [PREMIUM PICKS]

Ice ideas will usually offer a steadier flow of income and is likely to be a slower-moving but more stable…

Read more »

Investing Articles

Should I buy growth or value in my Stocks and Shares ISA?

Here’s why Stephen Wright's looking past the difference between growth stocks and value shares when finding investments for his ISA.

Read more »

Young mixed-race woman jumping for joy in a park with confetti falling around her
Investing Articles

If I’d invested £5,000 in a Nasdaq index fund 5 years ago, here’s how much I’d have now

The Nasdaq index keeps hitting new all-time records in 2024, as US tech stocks fly. How much could I have…

Read more »