Semantic Coherence: The Twelfth Magpie (formerly The Motley Fool UK) – Signal Evidence & AI Readability

[H6]
Investing Articles

[H3] An Important Update From The Motley Fool UK
11 May, 2026 |
Mark Rogers
The future of The Motley Fool UK is here.

Read more »

[H6]
Investing Articles

[H3] As Dr Martens bounces back to profit growth, is it time to buy the shares?
19 May, 2026 |
Alan Oscroft
After a tough start to life as a public company, are Dr Martens shares on the verge of a stunning recovery? let’s see what the results say.

Read more »

[IMG: Tree lined]
[H6]
Investing Articles

[H3] How much is needed in an ISA to target a £3,150 monthly passive income?
25 April, 2026 |
Ben McPoland
Ben McPoland explains why it’s not pie in the sky to aim for chunky ISA passive income, and also highlights a FTSE stock he likes for the future.

Read more »

[IMG: A hiker and their dog walking towards the mountain summit of High Spy from Maiden Moor at sunrise]
[H6]
Investing Articles

[H3] This FTSE 250 stock just hit $2 for the first time since 2022
16 May, 2026 |
Ben McPoland
Ben McPoland explains why this growth-oriented FTSE 250 investment trust has doubled in a year and how it could go…

Read more »

[IMG: Belfast City Sunset with colorful twilight over Lagan Weir Pedestrian and Cycle Bridge spanning over the Lagan River in downtown Belfast]
[H6]
Investing Articles

[H3] How has this under-the-radar FTSE 250 bank grown 7 times faster than the FTSE 100 since 2021?
16 May, 2026 |
Mark Hartley
Mark Hartley takes a closer look at a lesser-known bank stock that’s risen up the ranks to give major FTSE…

Read more »

[IMG: piggy bank, searching with binoculars]
[H6]
Investing Articles

[H3] Is this under-the-radar $2.5bn growth stock the next big AI winner?
16 May, 2026 |
Ben McPoland
Ben McPoland digs into a little-known Nasdaq-listed growth stock that is using AI tools to drive significant revenue growth.

Read more »

[IMG: British coins and bank notes scattered on a surface]
[H6]
Investing Articles

[H3] If someone starts investing now with £18 a day, how much might they have by Christmas?
16 May, 2026 |
Christopher Ruane
How could someone start investing under £20 a day and aim to have a portfolio worth over £85k within a…

Read more »

[IMG: Dominos delivery man on skateboard holding pizza boxes]
[H6]
Investing Articles

[H3] How much passive income could 5 years of fully using an ISA earn?
16 May, 2026 |
Christopher Ruane
Christopher Ruane demonstrates that there's more than one way to use the full ISA contribution allowance now to target passive…

Read more »

[IMG: Thoughtful man using his phone while riding on a train and looking through the window]
[H6]
Investing Articles

[H3] A stock market crash could help you retire years early. The reason’s simple
16 May, 2026 |
Christopher Ruane
Will the next crash wreak havoc with your retirement plans -- or bring them forward? Our writer explains how plunging…

Read more »

[IMG: Close-up of a woman holding modern polymer ten, twenty and fifty pound notes.]
[H6]
Investing Articles

[H3] Here’s how big an ISA’s needed to earn a £1,000 monthly passive income
16 May, 2026 |
Christopher Ruane
Christopher Ruane explains how a Stocks and Shares ISA could be used by someone aiming to earn a four-figure monthly…

Read more »

[IMG: Two business people sitting at cafe working on new project using laptop. Young businesswoman taking notes and businessman working on laptop computer.]
[H6]
Investing Articles

[H3] Under £1, Lloyds shares are the cheapest of UK banks. But are they the right choice for passive income?
16 May, 2026 |
Mark Hartley
Mark Hartley weighs up the passive income potential offered by Lloyds' shares and takes a closer look at how other…

Read more »

[IMG: UK supporters with flag]
[H6]
Investing Articles

[H3] 3 takeaways from Martin Lewis’s recent show on investing
16 May, 2026 |
Edward Sheldon, CFA
Martin Lewis is now talking about investing. His research shows that over the last decade, the returns from shares have…

Read more »

[IMG: Thoughtful man using his phone while riding on a train and looking through the window]
[H6]
Investing Articles

[H3] Michael Burry just snapped up one of my top Stocks and Shares ISA picks
16 May, 2026 |
Ben McPoland
This world-class growth firm has lost almost 40% of its value inside Ben McPoland's Stocks and Shares ISA. Why's he…

Read more »

[IMG: Aston Martin DBX - rear pic of trunk]
[H6]
Investing Articles

[H3] Here’s what the plummeting Aston Martin share price has done to £15,000 invested at the start of 2026!
16 May, 2026 |
Christopher Ruane
At the start of the year, the Aston Martin share price was in pennies. What's changed since then -- and…

Read more »

[H6]
Investing Articles

[H3] Scottish Mortgage isn’t the only FTSE investment trust making a big bet on AI infrastructure stocks
16 May, 2026 |
Edward Sheldon, CFA
With this under-the-radar FTSE investment trust, investors can get exposure to a ton of chip and data centre stocks at…

Read more »

[IMG: A Black father and daughter having breakfast at hotel restaurant]
[H6]
Investing Articles

[H3] Here’s how new menu items could help Greggs shares regain £20 per share
16 May, 2026 |
Mark Hartley
For much of 2023-24, Greggs' shares traded above £20 each. Now, a daring menu makeover could help the struggling stock…

Read more »

[IMG: British coins and bank notes scattered on a surface]
[H6]
Dividend Shares

[H3] Is this FTSE 250 income stock yielding 11.5% too good to be true?
16 May, 2026 |
Jon Smith
Jon Smith investigates an income stock with a double-digit dividend yield and comes to a decision as to whether the…

Read more »

[IMG: Tree lined]
[H6]
Investing Articles

[H3] Stock market rally looks stretched in places — but the trend is still intact
16 May, 2026 |
Andrew Mackie
Andrew Mackie looks at a stock market still led by the Magnificent 7, and asks whether leadership is starting to…

Read more »

[IMG: Group of four young adults toasting with Flying Horse cans in Brazil]
[H6]
Investing Articles

[H3] Is May 2026 the turning point for Diageo shares?
16 May, 2026 |
John Fieldsend
After a bruising few years for Diageo shares, the last few weeks are beginnning to look like the corner may…

Read more »

[IMG: Content white businesswoman being congratulated by colleagues at her retirement party]
[H6]
Investing Articles

[H3] How much do you need in an ISA to match the £12,547 State Pension?
16 May, 2026 |
Zaven Boyrazian, CFA
The State Pension pays just £12,547 a year. Here's how big an ISA needs to be to match it, and…

Read more »

[IMG: Woman riding her old fashioned bicycle along the Beach Esplanade at Aberdeen, Scotland.]
[H6]
Investing Articles

[H3] How big would an ISA need to be to generate an extra £12,547 a year in passive income?
16 May, 2026 |
Andrew Mackie
Andrew Mackie explains how a Stocks and Shares ISA could one day generate meaningful passive income — and why dividend…

Read more »

[IMG: Silhouette of a bull standing on top of a landscape with the sun setting behind it]
[H6]
Investing Articles

[H3] 3 FTSE shares experts think will lead the next bull market charge
16 May, 2026 |
Zaven Boyrazian, CFA
Some 63% of all analyst ratings on FTSE shares are currently set to Buy. Here are three stocks the experts…

Read more »

[IMG: Stack of one pound coins falling over]
[H6]
Investing Articles

[H3] Are dividend stocks actually riskier than cash savings?
16 May, 2026 |
Stephen Wright
According to Warren Buffett, risk is the chance of permanent loss. But does that mean inflation makes cash riskier than…

Read more »

[IMG: Portrait Of Senior Couple Climbing Hill On Hike Through Countryside In Lake District UK Together]
[H6]
Investing Articles

[H3] Expert picks: 2 top value stocks to buy and hold until 2036?
16 May, 2026 |
Zaven Boyrazian, CFA
Stocks are near record highs, but these two value stocks are still trading at significant discounts. That's why experts believe…

Read more »

[IMG: Man hanging in the balance over a log at seaside in Scotland]
[H6]
Investing Articles

[H3] How much do you need to put into the stock market to quit work for a life of passive income?
16 May, 2026 |
Zaven Boyrazian, CFA
Could the stock market really replace your salary? Here's how much money you'll need, and one quality FTSE 100 compounder…

Read more »

[IMG: Group of friends meet up in a pub]
[H6]
Investing Articles

[H3] £9,000 in ISA savings? Here’s how to target a £603 passive income overnight!
16 May, 2026 |
Royston Wild
Royston Wild reveals an investing strategy that could unlock a huge passive income from a Stocks and Shares ISA straight…

Read more »

[IMG: Transparent umbrella under heavy rain against water drops splash background.]
[H6]
Investing Articles

[H3] I’m following Warren Buffett’s advice when stocks are at record highs
16 May, 2026 |
Zaven Boyrazian, CFA
Stocks are near all-time highs, and nerves are rising. Here's what Warren Buffett recommends doing, and the quality stock that…

Read more »

[IMG: Queen Street, one of Cardiff]
[H6]
Investing Articles

[H3] Finally – the moment Greggs shareholders have been waiting for?
16 May, 2026 |
Stephen Wright
Greggs shareholders have been waiting a long time for the firm’s sales growth to pick up (or even stop declining).…

Read more »

[IMG: Portrait of pensive bearded senior looking on screen of laptop sitting at table with coffee cup.]
[H6]
Investing Articles

[H3] Is penny stock Helium One a cheap buy at under 1p?
16 May, 2026 |
Zaven Boyrazian, CFA
This penny stock trades at just 0.6p. But could it be sitting on one of the most exciting helium opportunities…

Read more »

[IMG: Storytelling image of a multiethnic senior couple in love - Elderly married couple dating outdoors, love emotions and feelings]
[H6]
Investing Articles

[H3] How easy it is to make a £1m Stocks and Shares ISA?
16 May, 2026 |
Royston Wild
There are 5,070 Stocks and Shares ISA millionaires in the UK, according to latest data. Fancy joining them? These tips…

Read more »

[IMG: A mature woman help a senior woman out of a car as she takes her to the shops.]
[H6]
Investing Articles

[H3] How to invest £150 a month in shares to target a £7,660 passive income for life
16 May, 2026 |
Zaven Boyrazian, CFA
Investing a small sum regularly in quality UK shares can generate a solid passive income in the long run. Zaven…

Read more »

[IMG: Smart young brown businesswoman working from home on a laptop]
[H6]
Investing Articles

[H3] £10,000 in an ISA? Here’s how that could grow to £37,700 of passive income
15 May, 2026 |
Ben McPoland
Ben McPoland highlights a well-known FTSE 250 stock offering both great value and potentially market-beating passive income.

Read more »

[IMG: Elderly father and adult son work in the garden]
[H6]
Investing Articles

[H3] Is British winemaker Chapel Down a bargain growth stock at just 35p?
15 May, 2026 |
John Fieldsend
There are few opportuities to invest in the nascent British winemaking industry, but growth stock Chapel Down offers one possibility.

Read more »

[IMG: Young mixed-race woman jumping for joy in a park with confetti falling around her]
[H6]
Investing Articles

[H3] How these 7 ‘boring’ UK shares could have made ISA investors millionaires!
15 May, 2026 |
Harvey Jones
Never underestimate the power of UK shares. Harvey Jones highlights new research showing how they can help investors make a…

Read more »

[IMG: Mixed-race female couple enjoying themselves on a walk]
[H6]
Investing Articles

[H3] Why is everybody suddenly buying NatWest shares?
15 May, 2026 |
Harvey Jones
NatWest shares have been selling like hot cakes lately, even though their performance has stuttered. Harvey Jones thinks he knows…

Read more »

[IMG: Calendar showing the date of 5th April on desk in a house]
[H6]
Investing Articles

[H3] £9,000 invested in Greggs shares at the start of the new ISA year is now worth…
15 May, 2026 |
Ben McPoland
Greggs' shares have been quietly creeping higher in the last few weeks. Is this FTSE 250 stock a turnaround opportunity…

Read more »

[IMG: UK coloured flags waving above large crowd on a stadium sport match.]
[H6]
Investing Articles

[H3] Are BP shares the ultimate ISA buy?
15 May, 2026 |
Harvey Jones
BP shares are in demand as the Iran war drags on and oil threatens to hit new highs. Harvey Jones…

Read more »

[IMG: pensive bearded business man sitting on chair looking out of the window]
[H6]
Investing Articles

[H3] How could a SIPP provide an extra £1,000 per month on top of a State Pension?
15 May, 2026 |
Christopher Ruane
Another four-figure sum per month in addition to the State Pension? Our writer explores some of the possibilities offered by…

Read more »

[IMG: Close-up image depicting a woman in her 70s taking British bank notes from her colourful leather wallet.]
[H6]
Investing Articles

[H3] How could a Stocks and Shares ISA be used to target a £2,962 monthly passive income?
15 May, 2026 |
Christopher Ruane
By grounding a passive income plan in realistic expectations, this writer thinks a Stocks and Shares ISA could potentially be…

Read more »

[IMG: Couple working from home while daughter watches video on smartphone with headphones on]
[H6]
Investing Articles

[H3] How much do you need in an ISA to earn a second income of £14,713 a year?
15 May, 2026 |
Harvey Jones
Harvey Jones says it's possible to get a second income without the effort of finding another job, by investing in…

Read more »

[IMG: A mature woman help a senior woman out of a car as she takes her to the shops.]
[H6]
Dividend Shares

[H3] How much is needed in UK shares to pay my £120 monthly coffee bill for life?
15 May, 2026 |
Jon Smith
Jon Smith talks through how to use UK shares to grow a second income so that in the space of…

Read more »

[IMG: Front view of aircraft in flight.]
[H6]
Investing Articles

[H3] £7,500 invested in Rolls-Royce shares at the start of the new ISA year is now worth…
15 May, 2026 |
Ben McPoland
Rolls-Royce shares have hit a turbulent patch and are now 12% off their March high. Is this FTSE 100 stock…

Read more »

[H6]
Investing Articles

[H3] Why are booming Barclays shares so cheap? Read this…
15 May, 2026 |
Harvey Jones
Harvey Jones watched helplessly as Barclays' shares climbed, thinking he'd missed his chance to buy the FTSE 100 bank. Now…

Read more »

123…❯

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

The Twelfth Magpie is an independent UK-owned investment research company, created following a management buyout of the former Motley Fool UK business and led by the same long-standing UK team.
The UK site first launched in 1997 as the British arm of The Motley Fool, helping generations of investors make sense of the markets through our website, premium investing newsletters, and in-depth research.
Our new name is a small nod to the old rhyme about counting magpies — where the twelfth is said to bring wealth. But while the name has changed, the spirit hasn’t. We’re still here to help individual investors navigate the market with clear thinking and a long-term perspective.
[H2] Our Investing Strategy
In all we do, we take a different approach:
we believe that the individual investor can beat the market;
we believe that anyone can do it, even if they don’t have a lot of time or money to devote to investing;
we believe in a long-term outlook, helping people build wealth over time; and
we believe that the person best positioned to take care of your financial future is you.
[H2] Our Investing Services
The Twelfth Magpie aims to provide solutions for investors of every kind. Our products and services — whether free or subscription-based — are designed to help people take control of their investments.
Our offerings include:
[H3] TwelfthMagpie.com Free Site
Our website publishes dozens of investing articles each week covering company results, share ideas, portfolio management, asset allocation and much, much more.
[H2] Our Subscription Investment Newsletter Services
Our flagship share recommendation service.
2 share picks a month – One growth-orientated, one income-orientated.
Best Buys Now – Our 6 timely buy opportunities each month.
5 Starter Stocks – Foundational companies for your portfolio.
£149/year
Our UK small-cap share recommendation service.
1 new, high-conviction small-cap pick – Released each month.
Best Buys Now – Our 3 timely buy opportunities each month.
Hidden Winners Universe – Watchlist stocks and shares you should avoid.
£199/year
To help you decide which service might be right for you we’ve created a detailed comparison of our share recommendation services.
[H2] The Twelfth Magpie Personal Finance
The Twelfth Magpie Personal Finance is our personal finance section of the site that gives guidance to help readers make well-informed decisions when it comes to their money. Before any budding investor turns to stock-picking, they ought to have their finances in order first…
As such, you’ll find unbiased reviews where we score brokers with a 5-star rating, allow readers to learn more about credit cards and the like, as well as handy calculators, in-depth guides and a whole lot more across our website!
[H2] Our Member Reviews
A great service for budding investors and more experienced folk alike. Share Advisor provides well researched recommendations, that are explained clearly so that you can understand the rationale for investing and the potential risks.
– Owen Napier
I have used the Motley Fool’s services for many years & have found them invaluable to my financial wellbeing. Good advice & good investment choices are what you get from the Fool’s subscription services.
– Michael Cuff
You can find a list of our top Trustpilot reviews on our Motley Fool UK Reviews page.
[H2] Contact Us
You can find the different ways to get in touch with us on our Contact Us page.
[H2] Follow Us
The Twelfth Magpie on Twitter
The Twelfth Magpie on Facebook
The Twelfth Magpie on Instagram

[H6]
Investing Articles

[H3] An Important Update From The Motley Fool UK
11 May, 2026 |
Mark Rogers
The future of The Motley Fool UK is here.

Read more »

[IMG: Thoughtful man using his phone while riding on a train and looking through the window]
[H6]
Investing Articles

[H3] Just Released: Our Top Defence Stock For ISAs In May 2026 [PREMIUM PICKS]
4 May, 2026 |
Mark Rogers
Fire stock picks will tend to be more adventurous and are designed for investors who can stomach a bit more…

Read more »

[IMG: Friends and sisters exploring the outdoors together in Cornwall. They are standing with their arms around each other at the coast.]
[H6]
Investing Articles

[H3] Just Released: Our Top Growth-Focused Stock For ISAs In April 2026 [PREMIUM PICKS]
18 April, 2026 |
Mark Rogers
Fire stock picks will tend to be more adventurous and are designed for investors who can stomach a bit more…

Read more »

[IMG: Senior couple are walking their dog through a public park in Autumn.]
[H6]
Investing Articles

[H3] Just Released: A Lower-Risk, Passive Income Stock Recomendation For Your ISA? [PREMIUM PICKS]
4 April, 2026 |
Mark Rogers
Passive income Ice stock picks will tend to be more conservative and are designed for investors looking to protect their…

Read more »

[IMG: Close-up image depicting a woman in her 70s taking British bank notes from her colourful leather wallet.]
[H6]
Investing Articles

[H3] £500 buys 259 shares in this 6.5% yielding income stock! [PREMIUM PICKS]
24 March, 2026 |
Mark Rogers
Here are the 3 latest income stock picks from the Share Advisor UK team, with high yields and other bullish…

Read more »

[IMG: Finger clicking a button marked]
[H6]
Investing Articles

[H3] Just Released: A Higher-Risk, High-Reward Stock Recommendation For Your ISA? [PREMIUM PICKS]
17 March, 2026 |
Mark Rogers
Fire stock picks will tend to be more adventurous and are designed for investors who can stomach a bit more…

Read more »

[IMG: A senior group of friends enjoying rowing on the River Derwent]
[H6]
Investing Articles

[H3] Up 329%! 3 Top Growth Stocks For March 2026 [PREMIUM PICKS]
10 March, 2026 |
Mark Rogers
Our goal here is to highlight some of our past recommendations that we think are of particular interest today, due…

Read more »

[IMG: Number three written on white chat bubble on blue background]
[H6]
Investing Articles

[H3] Just released: the 3 best growth-focused stocks to consider buying in January [PREMIUM PICKS]
6 January, 2026 |
Mark Rogers
Our goal here is to highlight some of our past recommendations that we think are of particular interest today, due…

Read more »

This site is no longer available.

[IMG: Young woman working on laptop with the text “How to Invest in Stocks” and The Motley Fool jester cap logo]
You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

In This Article
1. Set investing goals2. Choose your investment strategy3. Decide how much to investHow much do you need to start investing?How often should you invest?The power of compoundingHow long should you invest for?4. Open an investing accountHow to open a brokerage accountHow to avoid the tax man (legally)5. Choose which stocks to buyGetting ideas for stocks and sharesResearching your stock ideasDiversify your portfolio of stocks and shares6. Keep track of your investments7. Review your portfolio on a regular basisFrequently asked questionsWhat are the best UK stocks to invest in?Is the FTSE 100 just made up of UK stocks?What is the 7% rule in stocks?How much do I need to invest to make £3,000 a month?Are stocks a good investment for beginners?How do I choose my first stock?You're ready to start investing!
If you want to learn how to invest in UK or international stocks but you’re not sure where to start, then we’re here to help. In this guide on investing for beginners, we break down the key steps you need to consider, along with some practical hints and tips to get you off to a smooth start.
Investing in stocks and shares can transform your finances, although you do need a plan, and you need to be able to stick with it for the long term. If you can, then the magic of compound returns can get to work. For example, did you know that investing £500 a month in the UK stock market for the last 10 years would now be worth roughly £100,000?
Here are the seven steps you’ll learn about getting started with investing:
Set investing goals
Choose your investment strategy
Decide how much to invest
Open an investing account
Choose which stocks to buy
Keep track of your investments
Review your portfolio on a regular basis
Let’s get into the details.
[H2] 1. Set investing goals
The first step in learning how to invest in stocks is to ask yourself, what exactly is your goal? After all, everyone’s financial goals are different. We all have different time horizons and objectives. Younger investors are often seeking to build wealth, while older investors typically look to protect it.
Establishing investing goals is a highly personal process. And there are multiple ways of going about it. However, professional financial planners tend to use the SMART system (or variants of it).
Specific – make the objectives clear and precise. For example, are you saving for a house? Looking to pay for university? Growing a retirement fund? Maintaining a nest egg?
Measurable – set a completion condition for each financial goal to know when it has been achieved.
Achievable – what level of returns do you need to achieve your goals? What do you need to do to achieve them?
Realistic – are your goals realistically achievable?
Time – how long do you have to achieve your goals?
[H2] 2. Choose your investment strategy
A great first step for investing beginners is to decide on an investing strategy.
Think about how much time you’re willing and able to devote to investing. You can pretty much automate all your investing these days, making it simple and easy to grow your wealth. Or you can get much more involved, researching individual stocks and deciding which ones to buy and sell.
There are plenty of financial instruments available to stock market investors today. Each works slightly differently, with various degrees of risk and potential returns.
Index trackers – Buying shares in an exchange-traded fund is a highly popular approach for individuals who want to put their investments on autopilot. You’ll never beat the market with an index fund because your portfolio effectively becomes the market. Each tracker follows a specified index like the FTSE 100, S&P 500, or Nasdaq, and replicates their performance.
Unit trusts & funds – For investors who want to try their hand at beating the market but don’t have the time or interest in learning to analyse stocks, investing in a fund and/or investment trust is another option. A manager will pick stocks on your behalf in exchange for a small annual fee. But not every manager is Warren Buffett, so you need to choose carefully.
Stocks & shares – Picking your own stocks and shares requires a larger time commitment than the first two options. And it undoubtedly carries more risk. But when done correctly, it’s the most profitable approach. The Motley Fool is a strong believer that just about anybody can beat the market by owning individual stocks over the long term, but only if they’re willing to put in the necessary effort.
If you’re not quite sure which of these three approaches to choose right now, then don’t worry. We would say that index trackers are probably the best first step for most people who are just learning how to start investing.
But there’s nothing stopping you from trying all three approaches and seeing what works best for you. Or you might decide to start with index trackers and then move into funds and trusts, then onto individual stocks and shares as you get more comfortable when making an investment decision.
The most important thing is to have a plan and to make sure it’s one that suits your temperament so you can stick with it over the long term.
[H2] 3. Decide how much to invest
There are a few questions to start with when deciding how much to invest.
[H3] How much do you need to start investing?
Many people are put off buying stocks and shares because they think it requires a lot of money. That used to be the case, but it certainly isn’t anymore.
Share dealing charges for buying individual stocks and shares are much lower than they used to be, and it’s possible to set up plans that allow you to invest in stocks and shares from as little as £25 a month.
[H3] How often should you invest?
Many new investors wonder how often they should invest in stocks and shares. And the simplest and most effective answer is to invest regularly.
For most people, that means putting money to work each month by setting some capital aside from a paycheck. Utilising strategies like pound-cost averaging removes the stress of trying to time the market and ensures an investor is consistently building out their portfolio regardless of short-term market fluctuations.
In short, monthly investing:
Puts wealth building on autopilot, especially when investing in index funds.
It removes emotion from the equation, which can be highly advantageous, particularly during periods of heightened volatility.
Stocks are bought at all market levels, helping average out the cost basis
Even investing just a small amount each month can make a huge difference over time, thanks to the power of compounding. Let’s demonstrate how.
[H3] The power of compounding
When money is invested, investors benefit from what’s known as compound growth. This is a snowball effect where money earns returns on both the original investment and any subsequent gains thereafter.
On average, the FTSE 100 delivers a return of around 8% annually when including income from dividends. Assuming this dividend income is reinvested, and every month, £25 was added to the portfolio, a total of £9,000 would have been deposited into the account after 30 years.
But how much do you think the portfolio would be worth? It’s actually closer to £37,258, thanks to all the income it generated over the years.
Now, let’s say you’ve managed to land a well-paying job and have £500 to invest each month. Under the same assumptions, how much do you think you’d have after 35 years?
The answer: £1,146,941! Now, that’s a nice retirement plan!
[H3] How long should you invest for?
Every investor has different objectives, time horizons, and risk tolerances. And each of these factors can significantly influence the holding period of portfolio positions.
In many cases, people invest as a means to save and build wealth for retirement. Having a chunky portfolio not only provides a source of funds for generating a passive income but also offers better financial security than simply relying on a variable State Pension.
However, there are plenty of investors with a specific objective in mind. It could be to raise enough money for a downpayment on a house, buy a new car, or pay for a university degree. And depending on their starting capital as well as the employed investment strategy, the time horizon could vary from a few years to possibly even decades.
Investors comfortable with taking on more risk and volatility could enjoy the benefit of achieving their investment objectives much faster than those who prefer safer investment vehicles, such as bonds. But even when operating on a long-time horizon, how long should an investor hold on to individual stocks?
When taking a Foolish approach to investing, investors should aim to hold onto their shares as long as they remain of excellent quality. After all, top-notch stocks have a habit of rising higher. So, providing the capital isn’t needed for a planned expense, investors are often better served staying invested. This is especially true for dividend-paying stocks, as they can provide some welcome passive income that can be spent or reinvested.
Of course, even the best stocks in the world can be prone to volatility in the short term. And for the first couple of years, a stock may not reflect the performance of the underlying business. That’s why, as a general rule of thumb, money should only be invested in the stock market if it’s not going to be needed for at least the next three to five years.
[H2] 4. Open an investing account
If you’re going to buy stocks and shares, then you’ll need to open a brokerage account. There are many different brokers available, offering a low-cost way of buying stocks and shares in the UK, US, and most other major markets across the world.
You’ll want to compare their charges and see which share dealing account offers the best value for you. Some brokers have very cheap dealing fees, while others are very competitive when it comes to monthly administration charges. Others will allow you to buy a fractional share in a business or provide you with investment advice.
Which investment platform is best for you will depend on how much you want to invest, how often you want to buy and sell, and whether you want a wider range of investing options.
[H2] How to open a brokerage account
Opening a share dealing account is relatively simple. You probably need to link it to either your bank account or debit card, and you may need details like your National Insurance number. The broker will carry out some basic identity checks behind the scenes, and then you should be able to start investing in stocks. It will probably just take a few minutes from start to finish.
If you are just learning how to start investing, then a single account with a broker is probably all you need. However, many people end up with multiple accounts if they find that one broker is a good value for certain investments, while others might be better in different areas.
Take a look at our top-picked share dealing accounts in the UK to find one that’s right for you.
[H2] How to avoid the tax man (legally)
One thing we definitely recommend is investing in stocks and shares within an Individual Savings Account, or ISA. If you’re under 40, you can also open a variation of this called a Lifetime ISA, or LISA, where the government adds a bonus to your account, subject to certain conditions.
Investing in stocks and shares within an investment ISA or LISA means you pay no income tax on any dividends and no capital gains tax on your profits when a share price increases. Admittedly, when you first start investing, the amount of any tax you pay might be tiny, but it’s surprising how quickly that can change when you’ve been investing for a few years.
Using an ISA has become even more important in 2026, following the 2025 Autumn government budget, which saw capital gains tax on investments increase from 10% to 18% for Basic-rate taxpayers.
Investing in a Stocks and Shares ISA could save you thousands of pounds in tax each year, further down the line, and it usually doesn’t cost anything extra to have one.
An alternative tax-protected way to invest is through a Self-Invested Personal Pension, or SIPP. SIPPs probably have the edge when it comes to the amount of tax you can save. And any contributions up to £60,000 a year are actually eligible for tax relief!
But this advantage does come with a caveat. Under current rules, you can’t withdraw any money until you are 55 years of age. And this age requirement is increasing to 57 in 2028. It is, after all, a pension account.
Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.
[H2] 5. Choose which stocks to buy
There are a few steps to choosing stocks.
[H3] Getting ideas for stocks and shares
Think about the products you use every day, the food you eat, and the services you buy. The chances are there is a well-known stock exchange-listed company behind them. Or there might be a customer or supplier you come across while you’re working that seems to dominate its industry. Great ideas for stocks and shares are all around us.
Our premium investing services also have great share recommendations. You can read more about our premium services to see which is right for you.
But you don’t need to buy every single good stock idea you come across, as otherwise, you could end up buying hundreds of different companies. So, you’ll want to concentrate on what you think are your best stock ideas and maybe add the ones that come close to a watch list so that you can revisit them at a later date.
[H3] Researching your stock ideas
The internet makes it easier to research companies you’re interested in investing in. Each public company should have a part of its website called ‘Investor Relations’ that will contain detailed reports, presentations, and explanations about how its business works.
You can draw on your experience as a customer, read company reviews to see what others think, and ask people who have to deal with the company directly what they think.
[H3] Diversify your portfolio of stocks and shares
One concept that’s very important to understand when you’re learning how to invest in stocks and shares is diversification. In short, it means don’t put all your eggs in one basket.
You want to buy stock