Forget Bitcoin! Here’s how I’d invest £20k in shares today to get rich and retire early

Home   /   Forget Bitcoin! Here’s how I’d invest £20k in shares today to get rich and retire early

first_img Peter Stephens owns shares of Aviva, BAE Systems, and BP. The Motley Fool UK has no position in any of the shares mentioned. 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. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Investing £20k in shares instead of Bitcoin may seem like a strange move to some investors right now. After all, the prices of many FTSE 100 and FTSE 250 stocks are still significantly down on their 2020 starting prices. Meanwhile, the Bitcoin price rise has accelerated so that the virtual currency is up around 175% year-to-date.However, on a long-term basis, a portfolio of UK shares could offer less risk and greater return prospects than Bitcoin. As such, it may be a better means of improving an investor’s chances of getting rich and retiring early.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…Investing £20k in shares todayThe historic returns of the FTSE 100 and FTSE 250 show that investing £20k in UK shares today could lead to a  larger nest egg than Bitcoin over the long run.Both indexes have historically delivered total annual returns of around 8%. Assuming the same return on a £20k investment today would lead to a portfolio valued at around £435,000 over a 40-year time period.However, the 2020 stock market crash has left many UK shares trading at cheap prices. As such, they may be able to deliver higher returns than those of the wider index over the long run.Since they’re starting from a low base, and stock valuations tend to revert to their long-term averages over time, their potential to deliver capital gains over the coming years seems to be high.For example, investing £20k in UK shares such as BP, Sainsbury’s, BAE and Aviva could produce impressive returns. All four companies, and many others, have low valuations at the present time, as well as refreshed strategies to improve their financial performance. Over time, they could lead to a larger portfolio value within a basket of diverse UK stocks than Bitcoin.Avoiding Bitcoin’s risky outlookWhile UK shares can turn a £20k investment into a genuine retirement portfolio, Bitcoin faces a far less certain future. The stock market has always recovered to post new highs, but the price of Bitcoin could come under severe pressure if regulatory risks come to the fore. Or alternative virtual currencies become more popular.Moreover, Bitcoin’s price rise is based on improving investor sentiment. Unlike shares, it has no fundamentals, such as profit or asset values, to support its price level. As such, it would only take a change in attitude among investors to severely dampen its recent price rise.As such, investing £20k, or any other amount, in undervalued UK shares seems to be a more prudent move. Certainly, they could underperform Bitcoin and other assets in the short run, depending on how the economic picture changes.But their solid fundamentals and track record of growth over a very long time period indicate they offer superior risk/reward opportunities than the virtual currency. Our 6 ‘Best Buys Now’ Shares Enter Your Email Address 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. Image source: Getty Images. Simply click below to discover how you can take advantage of this.center_img Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Forget Bitcoin! Here’s how I’d invest £20k in shares today to get rich and retire early “This Stock Could Be Like Buying Amazon in 1997” Peter Stephens | Saturday, 5th December, 2020 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. See all posts by Peter Stephenslast_img

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