Stock market crash: I’d drip-feed money into cheap shares to make a million

first_img 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. “This Stock Could Be Like Buying Amazon in 1997” Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Stock market crash: I’d drip-feed money into cheap shares to make a million Simply click below to discover how you can take advantage of this. 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 Peter Stephens | Monday, 9th November, 2020 Image source: Getty Images There are a wide range of cheap shares available to buy following the 2020 stock market crash and even after Monday’s ‘Biden bounce’. However, in many cases they face uncertain futures that include the prospect of a second market downturn in the coming months.Therefore, drip-feeding money into undervalued stocks could be a sound move. It may enable an investor to capitalise on even lower valuations that could become available further down the line.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…Over time, this strategy may boost an investor’s returns. And it may improve their prospects of making a million.Drip-feeding money into cheap sharesSlowly buying cheap shares could be a better idea than investing a lump sum. That is because of the uncertain economic outlook. At the present time, risks such as coronavirus and Brexit remain relatively high. Any of those threats, as well as a large number of other risks, could cause a second stock market crash. This would mean that investors who invest a lump sum today could experience paper losses. They may also be unable to take advantage of even lower stock prices in the coming months.As such, buying smaller amounts of shares on a regular basis could be a more logical strategy. Regular investing services are widely available, with the cost of a trade being significantly lower than it otherwise would be. This means that regular investing does not produce excessive commission costs that negate the benefits of investing slowly in undervalued stocks.Cheap shares with growth potentialBuying cheap shares after the stock market crash could be a sound move. Certainly, in some cases companies are currently trading at low prices for good reason. For example, they may have weak market positions. Or their balance sheets could contain significant amounts of debt that inhibit their financial prospects. However, many high-quality companies are currently trading at low prices just because of weak investor sentiment towards equities.Historically, buying undervalued shares has been a profitable strategy. Investors who have previously purchased bargain stocks have generally benefited to a greater extent from the market’s long-term growth prospects compared to their peers who purchase companies with high valuations. Low share prices mean greater scope for capital returns that could have a positive impact on an investor’s portfolio.Making a millionDrip-feeding money into cheap shares can produce surprisingly large portfolio values over the long run. For example, investing £500 per month at the stock market’s historic annual growth rate of 8% would produce a £1m portfolio within 35 years.However, through buying undervalued shares today and holding them for the long run, an investor may be able to obtain a higher return than that of the wider market. This may improve their prospects of becoming a millionaire as the stock market recovers from its recent crash over the coming years. Enter Your Email Address 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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