3 steps I’d take to find the best UK shares to buy after the 2020 stock market crash

first_img Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Image source: Getty Images. See all posts by Peter Stephens 3 steps I’d take to find the best UK shares to buy after the 2020 stock market crash 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. “This Stock Could Be Like Buying Amazon in 1997” 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. Peter Stephens | Sunday, 1st November, 2020 Finding the best UK shares to buy may be a more difficult task after the 2020 stock market crash. The economic outlook is weaker than it was at the start of the year. As such, many companies face tough operating conditions that could negatively impact on their financial prospects.However, by focusing on companies with solid finances, wide economic moats and margins of safety, an investor could generate high returns in a likely market recovery in the long run.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…Solid finances after the stock market crashBuying UK shares with solid financial positions could offer less risk after the stock market crash. For example, a business with low debt levels and significant interest cover may be more able to overcome a period of weaker sales performance. With factors such as higher unemployment and weaker consumer confidence set to remain in place over the coming months, buying financially sound businesses could be a logical approach for investors to take.Furthermore, companies with sound balance sheets may be able to expand their market presence over the long run. They may be able to outlast their weaker peers in the coming months, and in doing so gain market share. They may also be able to capitalise on the stock market’s lower price level to make acquisitions to further improve their long-term profit potential.Purchasing UK shares with wide economic moatsCompanies with wide economic moats may also fare better than their peers following the stock market crash. An economic moat is essentially a competitive advantage over rival businesses. This may, for example, take the form of a unique product, a lower cost base or strong brand loyalty that produces higher sales in a variety of market conditions.Clearly, identifying UK shares that have wide economic moats is very subjective. However, by seeking out businesses that have a strong track record of profitability and that have offered higher returns than their peers over the long run, an investor may be able to position their portfolio so that it enjoys greater growth during a likely long-term economic recovery.Investing money in value stocksThe best UK shares to buy after the stock market crash may not necessarily be the cheapest companies in a specific sector. For example, companies with wide economic moats and solid financial positions may have a higher valuation than their less attractive peers. In such cases, it may be worth paying a premium price for a higher-quality business that offers less risk in the present economic difficulties and greater growth potential in the long run.Through purchasing a diverse range of companies with solid balance sheets and wide economic moats when they offer margins of safety, an investor can successfully capitalise on the 2020 market decline. Enter Your Email Address Our 6 ‘Best Buys Now’ Shares 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. Simply click below to discover how you can take advantage of this.last_img

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