There are some shares I think could do well for a year or two. Others I reckon might have a solid run of a few years. But the UK shares I am most excited to own are the ones I could imagine owning for decades.
Here are a handful of UK shares I reckon I could happily own for decades, if I was able to buy them at an attractive price.
Diageo
Drinks-maker Diageo is the name behind famous tipples including Guinness and Johnnie Walker. I like its pricing power, thanks to ongoing strong demand from customers and its unique line-up of brands.
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There is a risk of fewer young people drinking alcohol that could hurt sales and profits. But the business has also been building a portfolio of non-alcoholic drinks that can help combat that risk. Growing demand in some Asian countries should also offset some of that down trend.
Judges Scientific
Instrument-maker Judges Scientific has a simple-sounding business model.
It buys small- and medium-sized manufacturers when it can pay an attractive price, offers centralised business services that can help make them more efficient, and benefits from the willingness of customers to pay for precision.
That latter need means the business can compete on quality, not just price. But I see a risk that more competition to buy smaller competitors could push up the cost of future acquisitions.
Spirax-Sarco
Engineer Spirax-Sarco has a number of things going for it. Like Judges, it can provide customers with unique products, helping reduce price competition and its potentially negative impact on profit margins. The business has a large existing customer base that is often willing to spend heavily on mission-critical engineering components.
However, not all spending is critical and if the economy gets worse, some customers may trim their budgets for the sorts of products and services Spirax-Sarco provides.
Unilever
Consumer goods giant Unilever is a household name with its products used by billions of customers globally each day. That sort of demand is a major positive for sales, while owning a host of well-known brands lets the company set its prices at premium levels.
That was proven again in the first half of this year, with Unilever reporting profits for the period of almost €4bn. A recession that sees consumers tighten their belts is a risk to profitability, however.
Cranswick
Food-maker Cranswick is not a household name like Unilever. But it also has a business model I like a lot. It has a large customer base, such as supermarkets, in a field I expect to see ongoing demand.
Its strong sales and efficient operating model have helped it raise its dividend for decades, though ingredient cost inflation remains a risk to profit margins.
Should I buy?
Although I like all five of these UK shares, none yet has a place in my current portfolio.
Why? In short, four have higher valuations than I find attractive. However, if their share prices fall and I have spare cash to invest, I would be happy to buy them to hold for the long run.
Meanwhile, the fifth one I choose is Unilever. At its current valuation, it looks attractive to me. If I had spare cash to invest today, I would be happy to buy its shares to hold for years to come.
