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3 UK shares I’d buy to double my money in 2021

Andy Ross
·3-min read
Silver and golden colorful Christmas glitters showing the year 2021 on turquoise background.
Silver and golden colorful Christmas glitters showing the year 2021 on turquoise background.

I’m generally optimistic for UK shares over the next year or so. I think there are many shares that have the potential to double my money over the 12 months. From a long list then, I’ve narrowed down to these top three UK shares, which I have the most confidence in. I believe they can give me 100%+ returns.

My top UK share for doubling my money in 2021

While I’m very optimistic about Experian and Diageo, the share I think is best placed to double my investment, over the next 12 months, is Polar Capital Holdings (LSE: POLR).

It’s not the best known of companies, but this boutique asset manager has plenty of growth potential. Polar Capital has a number of funds in various sectors, but with a special focus in technology.

The firm has been increasing its investing teams. I believe this will boost assets under management in future years. In turn that should lead to higher earnings and profits.

The group also has opportunities to expand into new, faster growth markets such as Asia. That is an area of focus for the management that could bear fruit for investors in the coming years. It’ll be especially profitable for those who buy the shares cheaply.

Overall I think the shares look cheap and management has a plan to grow the company. I’m confident the shares can head up over both the short and the long term.

An industry that could recover from the pandemic

I think airlines, especially the big ones like International Consolidated Airlines and easyJet, will eventually emerge stronger from the pandemic. The reaction of the shares to vaccine news suggests other investors agree. IAG’s share price is up over 30% in the last month.

My theory is that there’s a lot of pent up demand building. Many who’ve held onto their jobs during lockdown have increased disposable income as they have cut down on socialising and possibly also commuting. I think many people, once the worst of the pandemic is over, will want to make up for lost time. A holiday will feel long overdue.

The airlines will naturally pick up much of this demand. Before the pandemic, the industry was expected to grow. That picture has changed – for a while – but better conditions will return for the industry next year or perhaps the year after.

In the meantime airline shares are cheap. In my opinion, they are undervalued even after the recent gains they’ve made. To me, they represent a long-term opportunity to buy and hold.

Polar Capital Holdings, IAG, and easyJet then are the three UK shares I back to all be able to double any investment I made now, within in the next 12 months.

The post 3 UK shares I’d buy to double my money in 2021 appeared first on The Motley Fool UK.

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Andy Ross owns shares in Polar Capital Holdings. The Motley Fool UK has recommended Polar Capital Holdings. 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.

Motley Fool UK 2020