Image source: Getty Images Everyone knows the best time to buy stocks is when they’re trading at discount valuations. But that’s easier said than done in a lot of cases. Falling prices usually mean that investors think buying is a bad idea. For those who can see past short-term challenges, though, the rewards for being brave can be enormous. The risks and rewards of buying low As an illustration, consider Meta Platforms. The stock was trading at around $120 at the end of 2022, implying a price-to-earnings (P/E) ratio of around 13. That’s clearly unusually cheap, but the firm was…
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Image source: Getty Images Premium content from Motley Fool Share Advisor UK Investors following the Fire style are accepting higher risk with the goal of attaining higher returns over time. So this approach requires a higher risk tolerance, and the willingness to accept significant volatility in share prices. In October 2019, we also expanded the range of our Fire shares to also include potential recommendations from the US stock market, which tends to include a better variety of “growth” stocks. We suggest that investors that primarily buy Fire shares should be particularly mindful of diversification in their portfolios. With sufficient…
Image source: Getty Images With the FTSE 100 and the S&P 500 reaching yet more record highs in 2025, more and more folks are seeing the stock markets as a way to unlock passive income. The shift was exemplified by British personal finance guru Martin Lewis’ recent move to start discussing the merits of investing in stocks and shares. Those living in the UK have access to thousands of companies on the London Stock Exchange, and the tax benefits of the Stocks and Shares ISA. For those with several years of investing time to work with, these advantages can lead…
Image source: Getty Images On the day that rumours spread about SpaceX being listed on the stock markets for the first time, one FTSE 100 stock rocketed to the top of the leaderboard. That stock was Scottish Mortgage Investment Trust (LSE: SMT) – perhaps the best way for Brits to get exposure to the exciting aerospace company that is picking up where NASA left off. Holdings Before getting into the meat of the SpaceX IPO, here’s a quick word on Scottish Mortgage. The fund is a portfolio of listed and private stocks, of which SpaceX is only one part. The…
Image source: Getty Images Investing in the FTSE 250 has delivered solid enough returns over the last 10 years. An average annual return of 5.4% since late 2015 comfortably beats saving cash. Over the last three years, the index’s returns have accelerated, hitting double digits over the past 12 months. Is now the time to buy mid-cap shares to target long-term wealth? And is that sort of figure good enough to build a suitably large nest egg for retirement? Let’s take a look. 10.6% return Since late 2022, the FTSE 250‘s average annual return has risen to 8.6%. On a…
Image source: Getty Images The stock market has had a fantastic run this year. As I write, the S&P 500 is up more than 16% while the FTSE 100 has returned around 23%, including dividends. The performance of some household-name stocks has been even more spectacular. For example, Rolls-Royce is up 95%, while Lloyds has delivered a 75% return before dividends. Shares of Google and YouTube parent Alphabet have jumped 61% year to date. A dramatic difference Last week, personal finance guru Martin Lewis highlighted the wealth-creating power of the stock market. In a presentation on his Martin Lewis Money…
Image source: Getty Images FTSE 250 investors will know Greggs (LSE:GRG) shares have been a dumpster fire over the last year. I myself have had my fingers burned in the chaos — I opened a position in the battered baker in November 2024, and added to my position two months later. Since 1 January, Greggs’ share price has crumbled like one its pastries, to £16.41. That represents a 42% decline, and means a £5,000 investment at the start of the year would now be worth just £2,900. Challenges remain as UK consumers keep their purse-strings tightened. However, if City analysts…
Artificial intelligence has advanced rapidly in recent years, raising expectations across the investment industry for meaningful gains in research efficiency, reporting, and risk management. Yet emerging academic and industry research offers a more sober view of this fast-moving technology. Recent findings point to persistent reliability gaps, the continued need for human judgment and oversight, and limits on near-term value creation, suggesting that AI’s impact may be more measured than early enthusiasm implied. For investors, the message is clear: AI remains a powerful long-term opportunity, but one best realized through disciplined, evidence-driven adoption rather than early-stage exuberance. This post is the…
Diageo’s (LSE: DGE) share price sits at the intersection of brand prestige and market pragmatism, in my view. On the one hand, it owns luxury drinks brands including Johnnie Walker, Tanqueray, and Guinness. On the other, the high cost of living and demographic changes have caused demand to fall for such premium goods in its key markets. So, the key question now is can it tip the balance of these factors into renewed growth, or will it remain stuck in decline? 2022 and all that Diageo’s share price has more than halved since January 2022, marking an unbroken bearish trend…
Image source: Getty Images Diageo‘s (LSE: DGE) been one of the worst-performing shares in my ISA this year. Year to date, the share price is down about 35%. Would I be mad to buy more while they’re near £16? Let’s discuss. Five reasons I might buy I’ve been closely monitoring Diageo shares while they’ve been falling and getting increasingly tempted to buy more for my portfolio. But the way I see it, there are both pros and cons of buying more. Starting with the positives, they’ve fallen a really long way (around 60% from their highs, which is quite astonishing)…