5 world-class UK stocks I’d buy today and hold for decades

Today’s troubles present a great opportunity to buy cheap UK stocks with the aim of holding them for years. I like these five.

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.

Young female analyst working at her desk in the office

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.

UK stocks are highly volatile right now as investors fret about everything from high inflation to the unfolding crisis in the Middle East. As stock prices fall I’m looking to buy world-class FTSE 100 companies that should thrive in the long run, despite today’s uncertainties.

Private equity is a tough sector to operate in today, as borrowing costs rise while selling companies proves harder. Despite that, private equity and venture capitalist 3i Group is one of the best performing stocks on the FTSE 100, when investors might expect it to number among the worst.

It helps that it has been operating in this field since 1945, so knows what it’s doing. I’m a little worried that half its portfolio is now invested in Netherlands non-food discounter Action. But that didn’t stop me buying its shares in the summer. Twice.

Should you invest £1,000 in Royal Mail Group right now?

When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets. And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Royal Mail Group made the list?

See the 6 stocks

I’m thinking far ahead

Pharmaceutical group GSK has had an underwhelming few years. Its once-mighty dividend has been stagnant while hiving off consumer healthcare business Haleon hasn’t exactly been a game changer. GSK has been overshadowed by rival pharma AstraZeneca. However, its future is looking a little brighter as sales and earnings rise, particularly in HIV and vaccines. Its product pipeline is getting stronger too.

GSK is a lot cheaper than Astra, trading at 10.7 times earnings against 60.77 times. Plus its 4.22% yield is more exciting than Astra’s 2.28%. It has plenty of comeback potential for investors who are willing to be patient.

FTSE 100 mining giant Glencore is another stock I’d buy today with the intention of holding for decades. Again, it has struggled lately on bad news from China and concerns about a recession in the US.

Given all of today’s financial and geopolitical worries, I’m not expecting an immediate recovery here either. But with the stock valued at just 3.96 times earnings, it seems too good an opportunity to miss. As does its 7.86% yield.

These five should thrive

Consumer goods specialist Unilever is another world-class company, selling more than 400 brands across 190 countries. Yet its recent share price performance has been disappointing, as management blundered into culture wars while the cost-of-living crisis tested its pricing power. Volumes have declined slightly, and I’m beginning to wonder whether some of its product lines are looking a little jaded.

With a new CEO, Hein Schumacher, appointed in July, Unilever is ripe for an overhaul. Schumacher has a long journey ahead. However, today’s valuation of 17.88 times earnings is dirt cheap by Unilever’s standards.

My fifth and final pick is Barclays. Like fellow FTSE 100 banks Lloyds Banking Group and NatWest Group, it’s unloved and out of favour. But looks like a contrarian investor’s dream. It trades at just 4.92 times earnings and yields 4.91%, as investors fret over rising interest rates, falling house prices, war, recession and all the rest.

I’m worried about all that stuff too. However, I’m not looking to buy shares I think will do well today or tomorrow. I’m taking a minimum 10-year view and, over that timescale, I think Barclays will more than recover its lost value. As ever, there are no guarantees. But these five look good long-term bets to me. I’ve bought some and the rest are on my buy list.

But there are other promising opportunities in the stock market right now. In fact, here are:

5 stocks for trying to build wealth after 50

The cost of living crisis shows no signs of slowing… the conflict in the Middle East and Ukraine shows no sign of resolution, while the global economy could be teetering on the brink of recession.

Whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be a daunting prospect during such unprecedented times. Yet despite the stock market’s recent gains, we think many shares still trade at a discount to their true value.

Fortunately, The Motley Fool UK analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global upheaval…

We’re sharing the names in a special FREE investing report that you can download today. We believe these stocks could be a great fit for any well-diversified portfolio with the goal of building wealth in your 50’s.

Claim your free copy now

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.

Harvey Jones has positions in 3i Group Plc, Glencore Plc, Lloyds Banking Group Plc, and Unilever Plc. The Motley Fool UK has recommended AstraZeneca Plc, Barclays Plc, GSK, Haleon Plc, Lloyds Banking Group Plc, and Unilever Plc. 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

Older couple walking in park
Investing Articles

Could £300 a month invested in US and UK shares reach a million by retirement?

Could an investor retire with a million pounds just by dedicating £300 a month to US and UK shares? Mark…

Read more »

Young Caucasian man making doubtful face at camera
Investing Articles

Is £800 enough to start an ISA?

Is it worth bothering with an ISA with less than £1,000 to spare? This writer believes it may be --…

Read more »

Investing Articles

3 reasons Tesla stock may be a long-term bargain

This writer is keen to buy Tesla stock at the right price. He doesn't think it's there yet -- but…

Read more »

Investing Articles

Nvidia stock is a lot cheaper than before – or is it?

Nvidia stock has been caught in the whirlwind of market volatility. This writer has been waiting to buy, so might…

Read more »

Top Stocks

3 FTSE stocks Fools are eyeing up for choppy markets

A selection of companies listed on the UK stock market on the watchlists of four Foolish investors.

Read more »

Young Black man sat in front of laptop while wearing headphones
Investing Articles

A £10,000 investment in Rolls-Royce shares last week is now worth this…

Harvey Jones says Rolls-Royce shares couldn't escape the volatility of recent weeks, but wonders if the recent dip is a…

Read more »

The flag of the United States of America flying in front of the Capitol building
Investing Articles

Prediction: in 2 years these S&P 500 stocks will be much higher than they are today

These two S&P 500 stocks have been beaten down in recent weeks. But Edward Sheldon expects them to move much…

Read more »

Investing Articles

10% yields! Why a volatile stock market is great news for passive income investors

The recent stock market volatility has given passive income investors the chance to earn double-digit returns. But they still need…

Read more »