One of the most popular ways of investing is via stocks. However, because most people are not familiar with stocks and shares, stock markets, and share trading, they leave it to the professionals to pick and mix single-name stocks, who then put them into investment vehicles such as stocks and shares ISAs and ETFs.
If you are considering investing in single-name stocks and shares that you choose and manage yourself, this article is for you. We will be discussing what stocks and shares are, and offer some tips on how to choose and manage them. We’ll also take a look at some of the best stocks to buy now.
| Should I buy all of the best stocks at once? | It is optional to buy all of these stocks at once. You can start by buying a few stocks and adding more over time. |
| Are these “best” stocks suitable for all types of investors? | No, each investor has different financial goals, risk tolerance, and investment horizons. |
| What are the risks of investing in these stocks? | All investments carry risk, and some risks to consider include market risk, company-specific risk and economic risk. |
| What criteria are used to determine the “best” stocks to buy now? | The criteria can vary among analysts but often include financial health, growth potential, competitive positioning, and current valuation. |
What are stocks and shares?
Let’s start off by explaining the terms “stocks” and “shares.”
Here in the UK, people often use the words “stocks and shares” interchangeably to mean the same thing – equities that grant the owner a percentage of the ownership of a company. In the USA, they tend to use the word “share” to refer to individual shares in a company, whereas the words “stock” or “stocks” refer to a collection or portfolio of a number of shares in one or more companies.
For a fuller explanation, please check out the Moneyfarm Insight entitled – The difference between stock and shares.
What are stock markets?
Stock markets, also known as stock exchanges, are public platforms designed for the issuance and trading of stocks and shares. Many countries have their own stock exchanges, such as:
- NYSE – The New York Stock Exchange (USA)
- NASDAQ 100 (USA)
- LSE – London Stock Exchange (UK)
- Nikkei 225 – (Japan)
- SSE – Shanghai Stock Exchange (China)
- Shenzhen Stock Exchange (China)
- Hang Seng – Hong Kong Stock Exchange (Hong Kong)
- NYSE Euronext – Europe
This is just a small section. For a more comprehensive listing, please click here.
Steps to get started
The best stocks to buy now can easily be bought via an online investment platform. There are many from which to choose, but for a quick guide, refer to businenessexpert.co.uk.
When you’re comparing platforms, be sure to check out the fees they charge for buying, selling and holding stocks and shares, including things like management fees, trading fees and foreign exchange fees. Some also charge for things like transferring your investment from another platform and even levy a fee for inactivity; so make sure you do your research well.
Some platforms only permit you to invest in companies listed on the LSE, while others allow you to trade shares on markets worldwide. So, if the best stocks to buy now are in the US or Europe, make sure that the platform you choose has appropriate access.
To open an account with an investment platform, typically, you will have to supply them with your name, address, National Insurance number, telephone number, etc., and a debit card number. Once your account is open, deposit some funds, and you can start investing.
The Top 10 best stocks to buy now in the UK
Knowing the best stocks to buy is always going to be a subjective thing. Here are our thoughts as at the time of writing. Some of the best stocks to buy right now include:
- Lloyds – (LON:LLOY)
- Taylor Wimpey (LON:TW)
- IAG (LON:IAG)
- Rolls-Royce (LON:RR)
- Tesco (LON:TSCO)
- Marks and Spencer (LON:MKS)
- Hikma (LON:HIK)
- Unilever (LON:ULVR)
- Alphabet (NASDAQ:GOOGL)
- NVIDIA (NASDAQ:NVDA)
While these might be the top 10 best stocks to buy now in the UK, our thoughts could be different in two- or three-months’ time. Stock markets and the share prices they display are volatile. That’s why, before you commit yourself, it’s essential to understand your investor profile and develop an investment plan.
Alternative investment ideas in the UK
Some investors target gold as part of their investment strategy because precious metals are seen as being a possible hedge against inflation. As well as gold, investors also consider investing in silver.
Two popular ways of investing in valuable metals include buying bullion or ETFs. If you’d like more information concerning putting money into silver, look at an article entitled “Investing in Silver in the UK – How to Buy Silver Stocks.”
Another of the alternative investment ideas in the UK gaining in popularity is green investing. We’ve seen a surge in investing in things like electric vehicles and sustainable energy, where hydrogen, in particular, poses an interesting option, with the possibility of putting money into the green hydrogen industry.
At the moment, the production of green hydrogen is costly. Still, production costs are likely to decrease over time, thanks to continuously reducing renewable energy production costs, economies of scale, technological advances, and lessons from projects currently underway.
Consequently, green hydrogen should become more economical. If this interests you, a Moneyfarm Insight article entitled “Invest in Hydrogen – the Top Companies, Stocks, and Investment Funds” is well worth reading.
How to select stocks in the UK
Choosing the best stocks to buy by yourself is no easy thing. There are many factors to take into consideration, and it is important to do your research well. Understanding how best to use techniques such as quantitative and qualitative stock analysis in the spread betting market will serve you well, but it is not a subject we cover in depth in this article.
The “How to select stocks guide” on comparebrokers.com explains the basics.
How to invest in stocks with Moneyfarm
When many people begin investing in stocks and shares, they go down the stocks and shares ISA or ETF route. But if you would like to start investing in single-name stocks and shares, we here at Moneyfarm have recently launched our “Share Investing Early Access” initiative.
If you know the best stocks to buy today that complement your investor profile, this initiative could be worth considering. It allows you direct access to a wide range of stocks and ETFs, so you can seek to create and grow your investment portfolio one step at a time.
To begin with, the only market you can access via this service is UK stocks, ETFs, and mutual funds. However, in due time, you will have more comprehensive access to US and European stocks and ETFs.
If you use this “Share Investing Easy Access” program before the 31st of October, it’s commission-free.
Taxation on stocks in the UK
Taxation, including how the best stocks to buy in 2023 are taxed, underwent a change earlier this year. The change affects all stocks and shares, including the best dividend stocks, whereby the dividend tax-free threshold was halved to £1,000, and the threshold for capital gains tax was also halved to £6,000. It means more people will get dragged into having to pay tax on their profits.
That’s not the end of the bad news. More cuts are scheduled to come into effect on the 6th of April 2024, when the thresholds will again be halved to £500 and £3,000, respectively.
The only way of avoiding these taxes is if your stocks are held in tax-efficient products such as ISAs or pensions.
Managing Risk
Whatever your investment ideas in the UK, there will always be an element of risk, even with passive investing.
Even the best stocks to buy are subject to market volatility, and if you actively manage them yourself, you can easily get caught out unless you are familiar with stock markets and share trading. The best stocks to buy in 2023 could well lose value next year or even in a few weeks. If you don’t keep up to date with how the markets and your shares are performing, you can quickly lose money if your investments nose dive.
The best ways to manage risk are twofold – through diversification and by employing a long-term investment strategy.
It’s because of the inherent risk with any sort of investing that many investors decide to use vehicles such as ISAs and private pensions. They both satisfy the diversification criterion, and pensions, in particular, also satisfy the long-term investment criterion. ISAs can also be long-term investments, but unlike pensions, you can access your money before the age of 55.
But ISAs do have a critical advantage over pensions; the income from them is tax-free.
The other vehicle to consider is an ETF, and here’s why you should choose an ETF or at least consider doing so. Like ISAs and private pensions, ETFs hold a wide range of shares, which can be of many companies in the same industry or many companies in a cross-section of industries and sectors.
They are usually passively managed and very easy to set up. This passive management means they are also less costly fee-wise than actively managed portfolios.
Some investors think that metaverse stocks are among the best stocks to buy in the UK about now. Again, these types of stock can pose more risk than usual because it’s a relatively new sector and contains many start-ups that have a higher failure risk than longer-established businesses working in more traditional sectors.
That said, metaverse ETFs encompass a broad range of metaverse stocks, making them a comparatively safer option. Recognising this potential, Moneyfarm has recently introduced its thematic investment initiative with four diverse ETF portfolios featuring some of the top 10 stocks to buy right now, reflecting the major megatrends shaping our future.
Finding the right personal wealth management specialist
To help you learn how to invest money to meet your financial goals and to assist you with narrowing down the best stocks to buy, you need to find the right wealth management specialist. There are plenty of them from which to choose, but it’s essential to work with someone like Moneyfarm, who is authorised and regulated by the UK Financial Conduct Authority (FCA) and whose products are FSCS-protected.
Wealth growth via The Moneyfarm Share Investing
The best shares to buy right now in the UK can be accessed on the Moneyfarm Share Investing platform. You can access our new portal via the Web, using a computer or mobile device (there’s also an app you can download for ease of use) means you can keep up to date as often as you like, and you can trade shares directly, taking advantage of current trends.
What are your preferred investment vehicles? Will you invest in shares, ETFs, or mutual funds? Perhaps you’d prefer one of Moneyfarm’s expertly managed global portfolios? Whatever you decide, with the cutting-edge technology we employ and the experience of our team of investment specialists, we can guide you to achieve your goals.
We advise investing long-term to help mitigate risk. We also encourage you to diversify your investment across different companies and market sectors. Accessing our new investment portal with all of the help and information it contains is the best way of aligning your investments with your strategy and goals.
FAQ
What is Moneyfarm’s share investing early access initiative?
Moneyfarm’s “share Investing early access” initiative is a new service that assists you with investing in UK single-name stocks, shares and ETFs. It facilitates you making well-informed decisions aligning with your attitude to risk and achieving your financial goals. It is accessible via the Moneyfarm website or app.
Which types of account types will be offered under the new share investing early access initiative?
You can create a general investment account or an ISA Share Investing account. At present, JISAs and SIPPs are not available via this initiative.
What is Moneyfarm’s role?
Moneyfarm’s role is to provide answers to technical questions with regard to Moneyfarm’s “share investing early access” initiative, to provide factual information concerning the financial products we offer and explain what’s available to you, the investor. However, unlike our managed portfolios, we cannot make suggestions as to which shares to pick.
*As with all investing, financial instruments involve inherent risks, including loss of capital, market fluctuations and liquidity risk. Past performance is no guarantee of future results. It is important to consider your risk tolerance and investment objectives before proceeding.
