Stock market crash part 2: how I’d find the best UK shares to buy in a crisis

first_img Enter Your Email Address Peter Stephens | Sunday, 11th October, 2020 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” Our 6 ‘Best Buys Now’ Shares Image source: Getty Images See all posts by Peter Stephens Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Simply click below to discover how you can take advantage of this. Stock market crash part 2: how I’d find the best UK shares to buy in a crisis 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. 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. The prospects for a second stock market crash look set to remain high over the coming months. Risks such as Brexit, the US election and coronavirus could cause investor sentiment to be very changeable. This could lead to a return to falling prices for UK shares.However, a market decline can bring buying opportunities for long-term investors. Through purchasing those businesses with wide economic moats, low debt and long-term growth potential you could survive a short-term crisis and prosper 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…Using company data in a stock market crashA stock market crash can cause many investors to become worried about their financial prospects. As such, they may become increasingly reliant on emotions when making decisions. This could cloud their judgment and may mean that they miss out on undervalued UK shares that represent long-term buying opportunities.Therefore, using company data to make decisions about where to invest could be a sound move. For example, checking the balance sheets of prospective purchases before buying them will provide guidance as to their financial strength. Companies with low debt and profit that easily covers their interest payments may be better able to survive a short-term crisis. They may also be more capable of using the weaknesses of their rivals to their advantage in building a larger market share.Accessing sound business modelsA stock market crash can also expose weak business models. Previously, companies that are inefficient or that lack the capacity to adapt to changing operating conditions may have been viewed positively by investors. However, companies that have a competitive advantage may be better able to survive a period of weak economic growth.Identifying UK shares with a competitive advantage is very subjective. For example, it can mean they have a strong brand, a large number of loyal customers, or a unique product among other attributes. Buying such companies may reduce your overall risks and lead to more positive returns in the long run as they use a weak operating environment to expand their market presence.Defensive UK sharesA second stock market crash could mean that defensive UK shares become more popular among investors. In the past decade, companies operating in sectors such as tobacco and utilities have been relatively unpopular due to their modest growth rates. However, their solid financial performances in a weak economic environment may attract cautious investors. This could lead to an outperformance of the FTSE 100.Your financial prospects could be improved through buying companies that have defensive business models, sound finances and a competitive advantage at lower prices during a market downturn. They may not offer high returns in the short run, but they could prove to be the best UK shares to hold in a crisis.last_img read more