July 5

£1k to invest? I’d use the Warren Buffett method to double my money investing in shares

first_img£1k to invest? I’d use the Warren Buffett method to double my money investing in shares Enter Your Email Address Peter Stephens | Thursday, 21st January, 2021 Warren Buffett has become one of the richest people on earth by investing in shares using a relatively simple strategy. His focus on buying high-quality companies when they trade at low prices has enabled him to outperform the stock market on a fairly consistent basis.As such, following his plan could be a shrewd move. It could reduce the amount of time it takes to double an initial investment of £1k, or any other amount, over the coming years.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Warren Buffett’s quality focusClearly, determining whether a company is a high-quality operation is very subjective. Different investors are likely to have opposing views on the subject. However, Warren Buffett focuses on areas such as a company’s competitive advantage and financial situation when deciding whether it’s attractive or not.Examples of competitive advantages that could increase the appeal of a business include unique products, strong customer loyalty and a low cost base that provides the scope for higher margins. Meanwhile, companies with modest debt levels and strong free cash flow may be more likely to survive periods of economic weakness.Through buying stocks with competitive advantages, Warren Buffett tilts the investment odds in his favour. Such businesses are more likely to deliver profit growth in the long run that has a positive impact on their share prices.Buying undervalued sharesBuying high-quality companies is just one part of Buffett’s investment strategy. Importantly, he aims to buy such companies when they trade at low prices. This provides greater scope for capital growth over the long run. That’s opposed to buying them at high prices that may already incorporate market expectations of their future growth potential.Companies can trade at low prices for a variety of reasons. For example, at the present time, they may be experiencing challenges caused by coronavirus. Or they may be struggling to deliver rising sales because of economic weakness. In such instances, there may be opportunities for long-term investors, such as Warren Buffett, to take advantage of their short-lived low valuations.Doubling an investment in sharesBuffett’s strategy has consistently allowed him to outperform the stock market. But even tracking an index such as the FTSE 250 could allow an investor to double their initial investment in shares over the long run. For example, the mid-cap index has produced annualised total returns of 9% in the last 20 years. The same return in future would lead to a doubling of an initial investment in around eight years.However, through buying high-quality companies when they trade at low prices, it is possible to reduce the amount of time it takes to double an investment in shares. As such, it could be worth following Warren Buffett’s strategy today while there are many opportunities to put it into action. FREE REPORT: Why this £5 stock could be set to surge Simply click below to discover how you can take advantage of this. Image source: The Motley Fool Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Our 6 ‘Best Buys Now’ Shares Get the full details on this £5 stock now – while your report is free. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Are you on the lookout for UK growth stocks?If so, get this FREE no-strings report now.While it’s available: you’ll discover what we think is a top growth stock for the decade ahead.And the performance of this company really is stunning.In 2019, it returned £150million to shareholders through buybacks and dividends.We believe its financial position is about as solid as anything we’ve seen.Since 2016, annual revenues increased 31%In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259Operating cash flow is up 47%. (Even its operating margins are rising every year!)Quite simply, we believe it’s a fantastic Foolish growth pick.What’s more, it deserves your attention today.So please don’t wait another moment. See all posts by Peter Stephenslast_img

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Posted July 5, 2021 by admin in category "tsejierv

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