Don’t ‘save’ for retirement! I’d listen to Warren Buffett and buy shares in an ISA to get rich

first_img Image source: The Motley Fool 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. Don’t ‘save’ for retirement! I’d listen to Warren Buffett and buy shares in an ISA to get rich Warren Buffett hasn’t become one of the wealthiest people on earth because he’s saved money over the years. Rather, he’s lived within his means and invested money in shares to capitalise on the stock market’s long-term growth potential.As such, with interest rates likely to remain low for a number of months or even years, now could be the right time to buy UK shares in an ISA. Many FTSE 100 and FTSE 250 stocks are trading at low prices, which could lead to even higher returns 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…Following Warren Buffett’s investing strategyAlthough Warren Buffett holds cash, his wealth has largely been generated from investing money in the stock market. Now could be the right time to follow a similar strategy. Certainly since many UK shares are trading at low prices that could make them attractive to ISA investors.For example, stocks such as easyJet, Rolls-Royce, Lloyds and Whitbread are all trading at extremely low price levels. They face challenging operating conditions. But they appear to have the financial means to overcome short-term problems. And then they can capitalise on a likely stock market recovery over the coming years.Similarly, stocks with wide economic moats such as Unilever, Diageo and Burberry could be appealing investing opportunities. Warren Buffett has historically sought to buy stocks with large competitive advantages that can mean less risk and higher returns. Since those companies, and many others, have been negatively impacted by coronavirus, they could offer wide margins of safety at the present time.Buying UK shares instead of using cash savingsAs mentioned, Warren Buffett holds cash to take advantage of stock market mispricings and to provide financial stability. However, this doesn’t mean he relies on it to deliver growth for his capital over the long run. If he had done, it’s unlikely he’d be as wealthy or famous as he is today.At the present time, low interest rates mean that cash savings could produce returns that are below inflation over the coming years. This would mean an individual’s spending power would fall.As a result, their capacity to enjoy improving financial freedom in older age may be somewhat limited. And, with the economic outlook being uncertain, a period of prolonged low interest rates could well be ahead.As such, now could be the right time to follow Warren Buffet’s investment blueprint. And that means buying undervalued shares for the long run. The past performance of the FTSE 100 and FTSE 250 also shows that a stock market recovery is likely to take place in the coming years.This may lift valuations among today’s lowly-priced shares and allow them to make a positive impact on an investor’s portfolio prior to their retirement date. 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. Simply click below to discover how you can take advantage of this. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge!center_img See all posts by Peter Stephens Peter Stephens | Saturday, 5th December, 2020 Our 6 ‘Best Buys Now’ Shares “This Stock Could Be Like Buying Amazon in 1997” 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. Peter Stephens owns shares of Diageo, easyJet, Lloyds Banking Group, Rolls-Royce, Unilever, and Whitbread. The Motley Fool UK has recommended Burberry, Diageo, Lloyds Banking Group, and Unilever. 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.last_img

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