Buying British stocks: what the experts think
Fresh eye, takeover talk and British stodge

Fresh eye
Unloved UK stocks are suddenly all the rage, says Pierre Briançon in Barron’s. The private equity battle for Morrisons – and a rumoured swoop for Sainsbury’s – have sent supermarkets soaring. And there’s a growing sense that the premiums being offered by private equity are evidence that public markets are undervaluing British stocks more broadly.
The UK market has significantly underperformed European and US markets in recent years. And this year the FTSE 100 is up less than 8%, compared to 15% for the equivalent index in Germany, and 20% in France. “Investors, feeling that other markets are now fully valued, may be looking at UK equities with a fresh eye.”
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Takeover talk
The surge in private equity bids is set to continue, said David Brenchley in The Sunday Times. But there’s also no shortage of attractively-priced UK companies that could tempt trade buyers too. Analysts tip the healthcare, biotech and gaming sectors as ripe for consolidation, while the wealth and asset management sector is another promising area, says investment firm Canaccord. Where should retail investors put their money to take advantage? Canaccord’s Kamal Warraich suggests Liontrust UK Smaller Companies or BlackRock Smaller Companies, while Jason Hollands of Bestinvest likes Threadneedle UK Equity Income, Fidelity Special Situations, and AXA Framlington UK Mid Cap.
British stodge
It’s not just takeover talk that is driving share prices – it’s a longer-term rotation into unfashionable “value” stocks, said Patrick Hosking in The Times. Take, for example, the Temple Bar Investment Trust, whose share price has leapt 47% since last November (and 19.3% in the six months to June) by holding the unexciting likes of Royal Mail, NatWest, Aviva, BP and Marks & Spencer. The trust’s co-manager Ian Lance reckons the rebalancing away from “growth” to “value” has years further to run, and says UK stocks are at their biggest discount to international stocks in 50 years. Just as “tech-sceptical investors started to pop a few growth stocks into their portfolios as an insurance policy five years ago”, now there’s a good case for investors with “whizzy tech-heavy portfolios to add a side-order of cheap British stodge”.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
-
Critics' choice: Three takes on tavern dining
Feature A second Minetta Tavern, A 1946 dining experience, and a menu with a mission
By The Week US
-
Film reviews: Warfare and A Minecraft Movie
Feature A combat film that puts us in the thick of it and five misfits fall into a cubic-world adventure
By The Week US
-
What to know before lending money to family or friends
the explainer Ensure both your relationship and your finances remain intact
By Becca Stanek, The Week US
-
US Treasuries were a safe haven for investors. What changed?
Today's Big Question Doubts about America's fiscal competence after 'Liberation Day'
By Joel Mathis, The Week US
-
Work life: Caution settles on the job market
Feature The era of job-hopping for bigger raises is coming to an end as workers face shrinking salaries and fewer opportunities to move up
By The Week US
-
How could stock market slides affect you?
Today's Big Question Pensions, prices and jobs at risk as Donald Trump's 'Liberation Day' measures take hold
By The Week UK
-
Markets notch worst quarter in years as new tariffs loom
Speed Read The S&P 500 is on track for its worst month since 2022 as investors brace for Trump's tariffs
By Peter Weber, The Week US
-
Saving the post office
Feature The U.S. Postal Service is facing mounting losses and growing calls for privatization. Can it survive?
By The Week US
-
Safe harbor: Gold rises as stocks sink
feature It's a golden age for goldbugs
By The Week US
-
What is the Mar-a-Lago accord?
Talking Point A Maga economic blueprint proposes upending the global financial system. Could it fly?
By The Week UK
-
Elon Musk: has he made Tesla toxic?
Talking Point Musk's political antics have given him the 'reverse Midas touch' when it comes to his EV empire
By The Week UK