I think some of the best stocks to buy right now are at FTSE 100. In this case, there are two companies listed in the blue chip index that I would buy for my portfolio at the moment.
FTSE 100 Wealth Manager
Schroeders (LSE: SDR) This is one of the most respected managers in the world. It may not be the largest in space, but its reputation is known around the world. This is the most significant competitive advantage of the company. Older US asset managers may have more money to manage, which allows them to achieve significant economies of scale, but Schroeders’ reputation works in a similar way.
Customers have flocked to the business in the last year and it is also benefiting from growing stock markets. According to the company’s annual results for 2020, 75% of the funds managed by it have exceeded in one year. And 81% are better than five years old.
Based on these indicators, it is not surprising to me that the group’s managed assets increased to a record £ 574 billion at the end of 2020.
While Schroders continues to do what it does best, find attractive investment opportunities for its customers, I think FTSE 100 can be a good investment. This does not mean that the business is not facing risks.
As mentioned above, larger competitors can offer customers a thinner service for a much lower fee. Moreover, customer retention depends on the group’s ability to excel. If managed funds start to lag behind in the market, consumers can go elsewhere.
Despite these challenges, I would buy the FTSE 100 stock for my portfolio, as I believe it is one of the best stocks to buy at the moment.
Shares to buy at the moment
Associated British Foods (LSE: ABF) is one of the few remaining conglomerates controlled by the family London Stock Exchange. Its diversification has been useful over the last 12 months.
While most of the company Primark valuable lifestyle stores were forced to close, its food division relaxed. The group’s revenue from continuing operations for the 16 weeks ended January 2 was 13% lower than the same period last year. However, retail sales fell by 30% on an annual basis.
Based on this performance, I think this is one of the best stocks to buy right now as a way to play economic opening. When retail stores can reopen, they could boost the group’s overall growth.
The main challenges for business are clear. If the blockages continue, there is no chance Primark the brand will return to its previous glory this year. Rising food prices may also compress margins in the group’s food division. This may prevent recovery over the next 12-24 months.
Still, given the diversification and long-term potential of the group, I would buy the shares for my portfolio today.
The publication 2 FTSE 100 shares to buy currently appeared for the first time in The Motley Fool UK.
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Rupert Hargreaves does not own the said share. Motley Fool UK recommended Associated British Foods. The opinions expressed about the companies mentioned in this article are those of the writer and may therefore 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 given the diverse range of insights we better investors.
Motley Fool UK 2021