Bargain British stocks with long-term potential

Three British stocks with plenty of long-term potential, according to Ian Lance, co-manager of Temple Bar Investment Trust

Train leaving the city, London, UK
(Image credit: Getty Images)

As value investors, we believe that the average market participant overreacts to short-term news – often related to earnings – which often has little or no impact on the long-run intrinsic value of the underlying business. We have also historically found underpriced securities in sectors deemed “uninvestable”. Many investors are still scared of banks thanks to the 2008 crisis, or avoid airlines because of the industry’s poor long-term record. If large parts of the market are unwilling to look at a particular industry regardless of valuation, then we are more likely to find mispriced securities.

Bargain British stocks to invest in

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up