The FTSE 100 and the FTSE 250 are both higher than they were a month ago. But there are still some really interesting — and good value — UK shares that I’d buy for my portfolio today.
Right now, there are four UK stocks on my radar. With a spare £500, I’d look to divide it into four lots of £125 and invest equally into each of them.
Top of my list is Experian. I think that this is a business straight out of the Warren Buffett playbook for investing.
Experian operates in an industry with limited competition. Its credit reports are a vital tool for lenders in evaluating the creditworthiness of borrowers.
The company’s business has high barriers to entry. It builds its reports by drawing on a huge database, which is nearly impossible to replicate.
Rising interest rates might slow the business down in the near future. But I think that this is going to provide me with an opportunity to buy shares at attractive prices.
I’m also looking at Diploma shares. This isn’t a stock that gets much attention, but I think it could be a great investment for me.
Diploma is a collection of smaller businesses that focuses on the distribution of industrial components. It concentrates on niche markets, which helps protect it from competitors.
As a result, the company achieves huge returns on its fixed assets. Its most recent financial statements indicate that it generated £116m using £80m in property, plant, and equipment.
The stock is a little expensive at current prices. But the quality of the overall company should, I think, prevail over time.
I already own shares in Rightmove, but I’d buy more of them today if I had a spare £500. The company owns the UK’s largest property platform.
The platform’s size provides Rightmove with a huge competitive advantage. It generates roughly twice as many visits per month as its nearest competitor.
More visitors makes the platform a more attractive place for vendors to advertise. This attracts even more viewers.
A slowing property market might dampen interest in Rightmove’s services. But I don’t think that the slowdown in UK housing is likely to be enduring.
Lastly, I’d buy shares in the Endeavour Mining. The company is a gold mining business with some of the lowest costs of production anywhere in the world.
The stock is 6% higher than it was a year ago. But I think that it’s trading at an attractive price nonetheless.
Gold prices are likely to be volatile over time. And this provides an element of risk with this type of investment – the company’s profitability is likely to fluctuate.
In my view, though, the company’s low production costs should mean that its business proves durable. That’s why I’d invest £125 of a spare £500 in shares of Endeavour Mining today.
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Stephen Wright has positions in Experian and Rightmove. The Motley Fool UK has recommended Experian and Rightmove. 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.