Buying UK shares right now might seem unpalatable too many investors. Indeed, the outlook for the global economy is currently highly uncertain. However, I believe the best time to buy shares is when other investors are selling. And, with that in mind, I’ve been adding FTSE 100 stocks to my portfolio in recent weeks. Here are two other companies I’ve been eyeing up recently.
FTSE 100 international growth
Global defence contractor BAE Systems (LSE: BA) is one of the most international UK shares. What I mean by this is the company operates in all sections of the globe. From Australia to the United States, BAE provides military equipment on multi-billion dollar contracts.
What’s really good about these contracts is the fact they tend to last for many years. In some cases, decades. This provides the company with a great deal of revenue visibility. That’s positive for both investors and management. For investors, it means more predictable dividends. Meanwhile, management can plan cash returns and research and development spending more effectively.
As such, I’m optimistic this business can produce large returns for its shareholders in the long run. It’s already an FTSE 100 dividend champion, and the stability of its revenues suggests this can continue. Further, by reinvesting profits back into operations, BAE’s earnings should grow steadily in the years ahead, which may produce capital growth for investors.
A basket of UK shares
I reckon the best way to capitalise on the wealth-creating power of the stock market in the long run is to buy a basket of shares. Therefore, as well as BAE, I’m also watching Experian (LSE: EXPN).
These two businesses are very different. Experian is a world-leading financial data service company. BAE makes battleships. However, the one thing that links these two UK shares is their market-leading qualities.
Unlike other FTSE 100 businesses, Experian is a leader in its field. The company has one of the most extensive financial data sets in the world. This gives the corporation a tremendous competitive advantage because, in the world of data, the more you have, the better the outcomes. That’s why I’m optimistic about the outlook for Experian.
It would be challenging for a competitor to build a dataset similar to that of the FTSE 100 giant. As such, I reckon it will be able to maintain its competitive advantage in the long run. And, as the world becomes more and more reliant on technology and financial services, the demand for the firm’s services should only expand.
These are the key reasons why I think this business could be a great buy-and-forget investment in the long run. There are only a handful of other firms that offer the same kind of attractive qualities, in my opinion.
