Home Business I bought these 3 FTSE 100 shares this month!

I bought these 3 FTSE 100 shares this month!


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It’s been a busy time for the UK stock market, with some prices falling heavily in recent months. This does not mean that they are cheap. But when I see quality companies trading at what I think is an attractive price, I consider buying them for my portfolio. This was the justification for the hat-trick FTSE 100 I bought stocks in October after their prices fell.

Howden joinery

I was thinking about buying from a timber merchant Howden joinery (LSE: HWDN) for a while.

The investment case is strong in my opinion. By developing relationships with trade customers, a company can often attract repeat customers with significant sales volumes. The nature of the business and transport costs mean that Howden’s national network of local warehouses can help give it a cost advantage over more distant suppliers. He has proven that his business model can be very profitable.

However, concerns about a declining housing market hit its shares hard. They have fallen 44% in value over the past year and are now trading at a price-to-earnings ratio in the single digits.

I understand that a drop in home sales can hurt revenue and sales. But I expect that renovations to existing facilities will help support sales. In the long term, I believe that Howden’s sound business model can once again support a higher share price.

JD Sports

I already owned the shares JD Sports (LSE: JD) until October.

Owning a stock and watching it decline can cause investors to behave emotionally. JD’s 55% decline over the past year is even worse than Howden’s.

It reflects concerns about management changes at the FTSE 100 retailer, as well as the risk of inflation eating away at profits. Additionally, if consumer spending declines at will, the athletic apparel market could decline, hurting sales.

But as a long term investor, I try to behave rationally, not emotionally. I’m of the same opinion as JD when it comes to Howden. I expect strong long-term demand for its market space. It is attractively positioned in this space thanks to its large customer base, well-known brand and proven business model.

These assets can help support a business that expects to achieve results this year in line with last year’s record performance. I was happy to use the fall in the JD Sports share price as a buying opportunity in my portfolio.

A FTSE 100 stock that I previously owned but no longer held in October was a financial services provider Legal and general (LSE: LGEN).

But I saw Legal & General’s falling share price as an opportunity to bring the company back into my portfolio – and pounced on it. The stock is 20% lower than it was a year ago.

A worsening economy can hurt a company’s profitability. If this happens, it could result in lower sales and lower profits. But in the long run, I think the firm’s financial services background can help it attract and retain clients. It has a large customer base and a very strong brand thanks to its colorful umbrella logo.

Legal & General’s dividend yield of 7.9% is higher than many of its FTSE 100 peers. This should make the shares a useful addition to my passive income.

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