I’ve been splashing out on UK growth stocks that I hope will fly back into favour when the . Some have had a bumpy start, but I’m measuring their success in years, rather than weeks. Sod’s law seems to dictate that whenever I buy a stock, the first thing it does is fall.
That’s what happened to home improvement specialist ( ). I added the £411m group to my portfolio on 13 September, three days after it posted a drop in interim profits. The shares held up on the day, as the board predicted a better second half.
With grim inevitability, they fell 6% or 7% after I bought them. So it goes. I’ll get dividend income, too I bought Wickes shares because I felt they would benefit from Labour’s plans to ramp up housebuilding, alongside a wider consumer recovery as the cost-of-living crisis faded and the Bank of England cut interest rates.
Personally, I think Labour will undershoot its ambitious house building targets, but still think the economy will pick up. Homeowners are still reluctant to green light big projects such as new kitchens, which has hit Wickes’ Design and Installation division. But with the shares trading at 11.
44 times earnings and yielding 6.29%, I think they’ll prove a great source of over the longer run. I love buying top growth shares once the heat has gone out of them, and that’s why I splashed out on ( ) in January.
This was a fortnight after the -listed trainer and trackie specialist had issued a profit warning following disappointing Christma.
