The Motley Fool | Jul 18, 2020 08:40
Investing in the stock market is one of the best ways to build wealth over the long term. Buying a basket of high-quality FTSE 100 shares could even help you get rich and retire early.
With that in mind, here are two FTSE 100 shares that may be worth buying for the long term today.
FTSE 100 shares on offer Hargreaves Lansdown (LON:HRGV) (LSE: HL) is one of the FTSE 100’s most successful companies. Over the past few decades, the firm has grown from a small upstart into one of the biggest stockbrokers in the country.
It does not look as if the company’s growth will slow down any time soon. As FTSE 100 shares go, it is a growth champion.
Over the past six years, earnings per share have expanded at an average rate of 9% per annum. Customers are continuing to flock to the broker. According to its latest trading update, 94,000 new customers joined the business in the first four months of the year.
Investors have been flocking to Hargreaves as the company is one of the best stockbrokers in the market. The firm has invested heavily in tech so it can provide the same service as other brokers at a much lower cost.
That’s also helped the business achieve some of the highest profit margins of all FTSE 100 shares. Last year, for example, the group’s operating profit margin hit 63%!
As such, it could be worth buying a share of this company for a diversified portfolio today as it continues to dominate the UK broking market.
Bunzl Bunzl (LSE: LON:BNZL) is one of my favourite FTSE 100 shares. Over the past few decades, the company has expanded steadily through a series of acquisitions and organic growth. Over the past six years alone, the firm has nearly doubled earnings per share.
There’s plenty of scope for this to continue.
Bunzl is highly cash generative, and it is adept at buying and integrating businesses. As the group continues to grow, it should generate more cash, which may help accelerate its acquisition spree. The organisation’s latest trading update also showed that the firm is coping well in the current crisis.
A better-than-expected trading performance means analysts are still expecting the group’s earnings to grow by a high single-digit percentage this year. That may put Bunzl in an elite club of FTSE 100 shares that report increasing earnings in 2020.
Therefore, if you’re looking for a share to help you retire early, it might be worth considering Bunzl for your portfolio.
The company’s steady growth has turned Bunzl into a growth champion over the past decade. As cash continues to flow into the group’s coffers, management can continue to do what they do best. If the organisation completes more deals, investors should continue to see steady returns from this FTSE 100 champion.
The post Looking to get rich and retire early? I’d buy these 2 FTSE 100 shares today appeared first on The Motley Fool UK.
Rupert Hargreaves owns no share mentioned. The Motley Fool UK has recommended Hargreaves Lansdown. 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.
Motley Fool UK 2020
Written By: The Motley Fool
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
Get free real time quotes, charts and alerts on stocks, indices, currencies, commodities and bonds. Get free top of the line technical analysis/predictors.
More content, faster quotes and charts, and a smoother experience is available only on the App.