My savings account is currently dry after the difficulties posed by surging energy prices and the cost-of-living crisis. However, it’s at times like these when I have to be disciplined and deploy an investment strategy. Every month, I’ll set aside £250 to buy these two UK shares. Let’s take a closer look.
Growth delivery to my portfolio?
Shares in Ocado (LSE:OCDO) have fallen 57% in the past year and they’re down 27% in the last three months. At the time of writing, the shares are trading at 784p.
In its results for the six months to the end of May, the online food retailer stated that it was on track to meet full-year guidance. This was welcome news for shareholders, given the broader challenges posed by economic factors, like rising energy costs.
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Despite this, however, revenue for the period fell 4% year-on-year. Meanwhile, the firm posted a pre-tax loss of £211m. This increased from £27.9m for the same period the previous year.
Over a longer timeframe, on the other hand, losses have actually narrowed. For the year ended November 2021, the pre-tax loss was £176m. For the same period in 2019, this figure stood at £214m. This may be some indication that things are going in a positive direction over the long term.
What’s more, for the 12 weeks to the beginning of July, sales rose 0.7%.
With this relatively strong sales performance, I think a monthly investment in the shares could provide me with growth over the long term.
Mining for profits
Antofagasta (LSE:ANTO) enjoyed surging pre-tax profits between 2020 and 2021, increasing from $1.4bn to $3.4bn.
The copper mining firm has seen its share price falling 24% in the past year and by 13.5% in the last month. The shares currently trade at 1,072p.
It’s also likely that the company could benefit from the reopening of major economies, like China. Demand for base metals would inevitably increase in that instance. It’s this type of trend that attracts me to Antofagasta for a monthly investment.
However, the firm lowered its copper production guidance last week. It produced 129,800 tonnes for the three months to 30 June, down 6.5% quarter on quarter.
This has been largely due to an ongoing drought in Chile that should subside in the coming months.
On the other hand, demand for copper is likely to increase substantially in the years ahead as economies move to reduce carbon emissions. Copper is a key component in many innovative technologies, including electric vehicles.
Overall, both of these businesses have faced challenges in recent times. Despite this, I think the issues are fundamentally short-term in nature. That’s why, taking a long-term view, I think both of these firms can thrive. As such, I’ll be using my £250 every month to buy the shares of each company going forward.
