Forget buy-to-let! I’d buy this FTSE 100 share that’s turned £1k into £14k

first_imgForget buy-to-let! I’d buy this FTSE 100 share that’s turned £1k into £14k Rupert Hargreaves owns no share mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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. Image source: Getty Images. Enter Your Email Address Our 6 ‘Best Buys Now’ Shares Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! 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”center_img Companies that provide a unique product or service that cannot be copied tend to be the best investments. Having a unique product gives businesses pricing power, which means they can charge what they like (up to a point).These companies usually have fat profit margins and report high returns on invested capital (a measure of profitability for every £1 invested in the operation).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…The London Stock Exchange (LSE: LSE) is one of these institutions. As well as being the operator of London’s stock market, the company also owns stock markets around Europe. Further, it is a major force in the clearing market across the continent.Crucial businessClearing isn’t a particularly exciting or high-growth industry, but it is a vital one. It is essentially the plumbing of the financial markets.Clearing houses make sure all parties settle trades on time with the correct money paid for the deal. Without them, the financial markets would be a very different place altogether.The fact that the LSE has such a big hold over European financial markets makes it a top-quality stock. Indeed, the stock has been one of the best performing shares in the FTSE 100 over the past decade.A £1,000 investment in the company 10 years ago is worth £14,000 today.It doesn’t look as if the group is planning to settle down any time soon either. It is currently progressing with the acquisition of data giant Refinitiv.This $26bn deal will give the LSE a foothold in another major market, financial data. It already has a presence in the financial data market, providing figures for index providers, but this deal will be a tremendous boost for the data division.Continued growthWith a robust presence in virtually every segment of the European financial markets, the LSE group is unlikely to be dethroned from its position. This suggests that shareholders should continue to be rewarded for owning a slice of this world-leading business.Barring a significant setback, such as a cyber attack or collapse of one of the LSE’s major business divisions, group earnings should continue to grow at least in line with inflation over the long term as management uses the company’s position in the market to increase prices.On top of this, the organisation is likely to make further additional acquisitions to complement organic growth.A price-to-earnings (P/E) ratio of 38, at the time of writing, reflects the LSE’s prospects. It also reflects the fact that earnings per share are on track to grow by more than 30% over the next two years.This could be a taste of things to come. Over the past six years, earnings per share have grown threefold. A repeat of this performance over the next six could see the stock triple from current levels. In addition to this capital growth potential, shares in the LSE also support a dividend yield of 1%. Simply click below to discover how you can take advantage of this. Rupert Hargreaves | Saturday, 1st February, 2020 | More on: LSEG 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. See all posts by Rupert Hargreaves 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.last_img

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