After launching Shyft Shares in 2021 with the New York Stock Exchange (NYSE) and NASDAQ, we added the London Stock Exchange (LSE) towards the end of 2023.
Why has it taken us two years to do this? You may remember that Shyft started with 200 or so US-listed companies and slowly grew that number to just over 600 (602 to be precise). That’s because we took our time to learn what Shyft’s share traders want before introducing new instruments.
Enter the London Stock Exchange with a selection of nearly 160 UK-listed companies. This takes the total number of companies you can buy shares in on the Shyft app and web-based platform to over 800. This includes the 48 handpicked companies on the Frankfurt Stock Exchange, another new addition to our share-trading platform.
This brings us to what you really want to know: how will this help me to grow my wealth?*
3 ways investors will benefit from having the London Stock Exchange on Shyft
- The LSE is not the oldest stock exchange in the world (that honour goes to Euronext Amsterdam) nor is it the biggest, but owning a part of a UK-listed company (even if it’s just one share) has always appealed to investors because of the large number of blue-chip companies listed in the United Kingdom. Many of us grew up with names like Aston Martin Lagonda Global Holdings plc (AML), Tesco plc (TSCO) and Burberry Group plc (BRBY), and now you can actually own a piece of these companies.
While nostalgia may be a trend in 2024, the real name of the investment game is diversification. That means investing in different companies, different sectors, different regions and countries, different types of assets. Why? To cover yourself in case one sector or economy underperforms.
When the Covid pandemic brought the hospitality and tourism sectors to a standstill, healthcare and tech took off. Win or lose, Donald Trump is set to make a strong comeback in the run-up to November’s presidential election in the United States. If he wins, Bloomberg predicts that “a second Trump administration will be much more radical than the first” and the political environment more volatile. This is sure to have an impact on the New York Stock Exchange and NASDAQ.Diversifying therefore protects you when one sector or economy hits a slump and spares you from seeing your total investment portfolio taking a nosedive.
Right now, there is much talk of the Magnificent Seven in investment circles. The term includes the seven biggest tech companies on the NYSE and NASDAQ: Apple (AAPL), Amazon (AMZN) and co.
Much as everyone wants to be in on the ‘next big thing’ on the stock markets, many, many investors prefer putting their money into familiar names that have been around for a long time, and that will grow your wealth slowly but surely. After all, if you follow Warren Buffett, you’ll know that “Rule No. 1 is never lose money. Rule No. 2 is never forget Rule No. 1.”
Among the top ‘risers’ on the LSE in January 2024 was The Berkeley Group Holdings plc (BKG), founded in 1976. Not old enough for you? How about Schroders plc (SDR), a multinational asset manager that started doing business in 1804. See what we mean?
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*The content provided is for informational purposes only and does constitute financial advice. You should always do your own research and/or seek professional advice before making investment decisions.
