How to find the best UK shares to buy in December to aim for a million

The 2022 stock market correction has created plenty of amazing buying opportunities for UK shares. Some may even unlock enormous wealth.

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.

Mature people enjoying time together during road trip

Image source: Getty Images

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.

With all the stock market turmoil endured in 2022, finding millionaire-making UK shares in December may seem like a far-fetched dream. Yet for patient investors, capitalising on cheap valuations could be a lucrative decision in the long run. After all, fortunes are made in stock market recoveries.

Despite countless analysts attempting to predict where the markets are going in the coming months, there’s no real way of knowing. Investors could be entering a period of further volatility, or the recovery may have already started.

Regardless, history has shown time and time again that buying high-quality at a low price tag is a proven recipe for sustainably building wealth. And over the long term, a modest investment can transform into a surprisingly large nest egg. It may even reach the seven-figure territory.

Top shares can survive the storm

There are many factors at play that need to be considered before committing to an investment. And one of the most critical, especially during economic wobbles, is financial health.

Regardless of how promising or revolutionary a company may be, the point becomes moot if it can’t keep the lights on. When consumer spending is in free fall, even business-facing enterprises are affected. After all, they may not be selling to consumers, but their clients could be, which passes on the reduced demand.

The end result is cash flow becoming restricted. And this impact is only amplified by rising interest rates pushing up the cost of having debt. This is obviously far from ideal. But the UK shares with a hefty war chests of cash probably aren’t breaking a sweat.

Revenue and earnings growth may be struggling due to the current operating environment. However, by having a balance sheet flooded with liquidity, these well-funded businesses can easily survive the chaos. What’s more, they might even be able to capitalise on the weakened state of their competitors and steal market share.

Finding bargains

Under normal conditions, finding cheap stocks isn’t an easy task. Corporate valuation is a bit of a rabbit hole, and even professional investors struggle with it. Yet when a stock market correction turns up, the difficulty of spotting bargains plummets.

When volatility goes up, emotional discipline goes down the drain. And in 2022, most investors have been selling off anything with a pulse to try to mitigate losses. This indiscriminate selling activity has led to countless fantastic businesses seeing their valuations slashed. That’s despite the underlying fundamentals remaining rock-solid.

By finding the companies whose business model remains uncompromised with a falling share price, investors can tap into potentially excellent long-term investments. In fact, even if these shares just match the average 8% return of the FTSE 100, a £1,000 monthly investment would turn into a million within roughly 25 years.

Of course, another crash or correction will eventually rear its ugly head during this waiting time. And such an event will undoubtedly delay the journey to becoming a millionaire. But just as the 2022 correction is creating fantastic buying opportunities in UK shares today, future volatility will likely do the same.

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.

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

Here’s why I’m still holding out for a Rolls-Royce share price dip

The Rolls-Royce share price shows no sign of falling yet, but I'm still hoping it's one I can buy on…

Read more »

Investing Articles

Greggs shares became 23% cheaper this week! Is it time for me to take advantage?

On the day the baker released its latest trading update, the price of Greggs shares tanked 15.8%. But could this…

Read more »

Investing Articles

Down 33% in 2024 — can the UK’s 2 worst blue-chips smash the stock market this year?

Harvey Jones takes a look at the two worst-performing shares on the FTSE 100 over the last 12 months. Could…

Read more »

Concept of two young professional men looking at a screen in a technological data centre
Investing Articles

Are National Grid shares all they’re cracked up to be?

Investors seem to love National Grid shares but Harvey Jones wonders if they’re making a clear-headed assessment of the risks…

Read more »

Investing For Beginners

Here’s what the crazy moves in the bond market could mean for UK shares

Jon Smith explains what rising UK Government bond yields signify for investors and talks about what could happen for UK…

Read more »

Investing For Beginners

Why it’s hard to build wealth with a Cash ISA (and some other options to explore)

Britons continue to direct money towards Cash ISAs. History shows that this isn't the best way to build wealth over…

Read more »

Growth Shares

I bought this FTSE stock to beat the index over the next 4 years

Jon Smith predicts that a FTSE share he just bought for his portfolio could outperform the broader market, based on…

Read more »

Investing Articles

The Sainsbury’s share price dips despite a bumper Christmas – it’s now cheap as chips

Harvey Jones says the Sainsbury's share price looks good value after today's results. He thinks it's worth considering for dividend…

Read more »