Stocks and Shares ISA: which shares should I buy in 2021?

Stocks and Shares ISA: which shares should I buy in 2021?

first_img 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. See all posts by Alan Oscroft Simply click below to discover how you can take advantage of this. There’s not long to go until we have a whole new ISA allowance. That means we can invest up to £20,000 more come April, and not pay any tax when we eventually cash it in. For me, it brings the same old questions again. What types of shares are best for my Stocks and Shares ISA, and how should I invest differently this year?I generally prefer to buy FTSE 100 shares that pay dividends these days, and that might seem like a sensible ISA strategy. After all, dividend shares are less risky, aren’t they? And it should be easier for me to stash them away and ignore them for years, just taking the annual cash, shouldn’t it?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…Well, I own shares in Lloyds Banking Group. And the Lloyds share price is down around 35% over the past five years. Oh, and my nice safe dividends have been halted. Sure, the dividend has been paused at the behest of the regulator, and I suspect it’s likely to be reinstated relatively quickly. And I might buy some more for my 2021 Stocks and Shares ISA. But it does shows that dividend shares aren’t necessarily safer than growth shares.Growth vs incomeSpeaking of growth shares, I also have a holding in Boohoo, which doesn’t pay any dividends. But the Boohoo share price has soared eight-fold over the same five years. Unfortunately I didn’t buy them that long ago. But, so far at least, my ISA money would have done a lot better in the growth stock that is Boohoo than in income-paying Lloyds shares.People might make assumptions about the relative risks of various types of shares. But I prefer to ignore such generalisations and focus on the individual companies. So if I’m convinced that a company is a great one and its shares are good value, I’ll rate it a buy. If not, I won’t.Some will argue that putting Stocks and Shares ISA money into dividend-paying shares is a good choice for retired investors. It can hopefully provide a steady income — at least, steadier than growth shares paying no dividends at all. But then, I have a friend who retired with a portfolio of growth shares. They pay only modest dividends now, and for years didn’t pay any at all. He gets his income by selling some shares at regular intervals.Stocks and Shares ISA strategySo for me, if the overall value of my Stocks and Shares ISA is increasing over the long term, and I can take regular income from it (via selling shares or collecting dividends), I’ll be happy.But what about 2021 specifically? The Covid-19 pandemic has changed the investing landscape dramatically, hasn’t it? Well, it hasn’t changed my long-term strategy in the slightest. I’m still guided by Warren Buffett’s exhortation to look for great companies at good prices.That might get me some better bargains while share prices are depressed. But I’ll be investing in exactly the same kind of companies that I was seeking anyway. The priority for me is to use as much of my annual Stocks and Shares ISA allowance as I can, without worrying about short-term ups and downs. Enter Your Email Address Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Alan Oscroft owns shares of boohoo group and Lloyds Banking Group. The Motley Fool UK has recommended boohoo group and Lloyds Banking Group. 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. Stocks and Shares ISA: which shares should I buy in 2021?center_img Alan Oscroft | Saturday, 13th February, 2021 Our 6 ‘Best Buys Now’ Shares Image source: Getty Images 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. 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. “This Stock Could Be Like Buying Amazon in 1997”last_img

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