3 cheap shares I’d buy now and aim to hold for a decade

first_img Are you on the lookout for UK growth stocks?If so, get this FREE no-strings report now.While it’s available: you’ll discover what we think is a top growth stock for the decade ahead.And the performance of this company really is stunning.In 2019, it returned £150million to shareholders through buybacks and dividends.We believe its financial position is about as solid as anything we’ve seen.Since 2016, annual revenues increased 31%In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259Operating cash flow is up 47%. (Even its operating margins are rising every year!)Quite simply, we believe it’s a fantastic Foolish growth pick.What’s more, it deserves your attention today.So please don’t wait another moment. 3 cheap shares I’d buy now and aim to hold for a decade 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. Much has been written about the strategy of buying cheap shares and holding them for a long time. In the past, such an approach has been successful for many investors. And there’s a body of literature dedicated to value investing where a stock is deemed attractive if it looks cheap compared to valuation measures.Why I’m searching for cheap shares to buy nowBenjamin Graham is often called the father of value investing and his books are a good read. For example, I’ve got a copy of The Intelligent Investor on my bookshelf. And that tome is well-known for having been a strong influence on the young Warren Buffett.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…But even buying stocks that look cheap when measured against their fundamentals is no guarantee of a successful investment outcome. Cheap shares can get cheaper and then stay there. Even value shares can lose me half my money if I allow them to.However, there seems to be an investor rotation going on in the markets. I reckon investors have been shifting their money from expensive growth stocks into cheaper value and recovery shares. And over time, the stock market has a habit of cycling between such trends. I think it’s a good time for value shares to have their time in the sun. So most of my investments focus on that theme right now.Of course, I could be wrong with my analysis and my value picks could go on to underperform. Nevertheless, I’m sticking to the strategy for the time being and one stock I like the look of is Morses Club. The company is a consumer finance business focused on the home collected credit market. Attractive on the numbersWith the share price near 66p, the forward-looking earnings multiple is a modest mid-single-digit number and there’s a chunky dividend yield above 6%. But the business has had its wobbles in the past and earnings have a patchy record. Good share performance is far from certain going forward and the somewhat murky outlook is probably why the stock looks cheap.I’m also keen on H&T, the pawnbroking business. With the shares near 301p, the valuation looks modest and there’s a decent shareholder dividend above 3%. But the valuation has looked modest for this company for as long as I can remember. Another risk is that City analysts expect a further decline in earnings in 2021 on top of the big falls last year because of Covid-19. Nevertheless, as a value proposition, those factors don’t put me off the stock.I like the blend of agriculture and engineering services offered by Carr. I see the stock as a potential steady investment operating in stable sectors. With the share price near 130p, the low double-digit valuation is undemanding and there’s a dividend yield knocking on the door of 4%. But the stock’s been trending lower for almost seven years. There’s a chance I could buy the stock and hold for a decade and still end up losing money. However, I’d embrace the risks and buy a few of the shares.I’d aim to hold shares like these three for at least a decade to give the value time to build and feed into the share price. Simply click below to discover how you can take advantage of this. Kevin Godbold | Wednesday, 10th March, 2021 FREE REPORT: Why this £5 stock could be set to surge Get the full details on this £5 stock now – while your report is free.center_img Our 6 ‘Best Buys Now’ Shares 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. Kevin Godbold has no position in any share mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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. Image source: Getty Images. Enter Your Email Address See all posts by Kevin Godboldlast_img read more