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Forget Bitcoin, buy-to-let and Cash ISAs! I plan to get rich with UK shares

Royston Wild
·3-min read
The letters ISA (Individual Savings Account) on dice on stacks of gold coins on a white background.
The letters ISA (Individual Savings Account) on dice on stacks of gold coins on a white background.

UK share markets provide a terrific way for UK share investors to get mega rich. Never mind Bitcoin, an asset where prices soar and then sink at the drop of a hat. And forget buy-to-let while you’re at it. Soaring landlord costs make this form of investment far too expensive.

You can also also give traditional savings accounts short shrift. A quick look on Moneysupermarket.com shows me, for example, that the best-paying easy access Cash ISA on the market pays just 0.6%. I wouldn’t say that this isn’t worth getting out of bed for. Any return on your cash is better than nothing. But you get the idea.

There’s no reason why we should endure such investment risks or settle for paltry returns. UK share markets are there to help us get seriously rich. I’ve continued to buy British stocks in my Stocks and Shares ISA despite the colossal uncertainty created by Covid-19. And I plan to keep investing in 2021 as well.

Keeping the faith

It’s abundantly clear that the global economy faces massive challenges in the new year. We’ve got the ongoing coronavirus crisis which, in recent times, has spawned a dangerous second strain that’s causing fresh lockdowns and travel restrictions all over the globe. You’ve also got the threat of immense Brexit disruption from 1 January which could severely damage regional economies. Progressing trade wars between major nations represents another cloud on the horizon.

But so what? The key to successful investing is to buy UK shares you’d be happy to hold for the long term. I buy stocks with a view to holding them for a minimum of 10 years. Over this sort of timescale the impact of temporary economic bumpiness tends to be absorbed. Indeed, data shows us that long-term investors make a healthy average annual return of 8-10%.

UK investor holding smartphone and monitoring shares
UK investor holding smartphone and monitoring shares

Obviously, you need to be that more careful investing during economic crises. Balance sheets come under pressure and dividends can topple as a result. Tough conditions pose a threat to the mere existence of many UK shares too. But with some sound research (and a little help from experts like The Motley Fool) an investor can sidestep these pitfalls and build a five-star stocks portfolio.

Top UK shares for 2021

As I say, I’ve kept investing in my ISA during 2020. And this isn’t just because of the security a long-term investment strategy provides.

It’s because the stock market crash has thrown up stacks and stacks of bargains too cheap to miss. Panicked investors always sell quality stocks along with the genuine duds in the rush for the exits. This provides an opportunity for level-headed individuals to nip in and grab a bargain. And there’s an abundance of help out there to help you dig these out and make a fortune in 2021 and beyond.

The post Forget Bitcoin, buy-to-let and Cash ISAs! I plan to get rich with UK shares appeared first on The Motley Fool UK.

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Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Moneysupermarket.com. 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