first_imgLooking to buy cheap FTSE 100 stocks? Here are 3 simple steps I’d take to make a million Peter Stephens | Sunday, 24th May, 2020 Simply click below to discover how you can take advantage of this. Buying cheap FTSE 100 stocks may not seem to be a worthwhile means to make a million after the index’s recent decline. However, its track record suggests that buying when share prices are low can lead to higher returns over the long run.As such, through buying a diverse range of businesses with strong balance sheets and wide economic moats, you could generate high returns that increase your chances of obtaining a seven-figure portfolio.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…Diversification across the FTSE 100It’s all too easy to overlook the risk of buying cheap FTSE 100 stocks and, instead, focus on their return prospects. However, the world economy faces an extremely uncertain future at the present time that could lead to many businesses experiencing challenging trading conditions.As such, it’s imperative to consider the prospect for some of your holdings to deliver disappointing returns over the long run. In a diverse portfolio of FTSE 100 stocks, poor performance from a small number of them won’t impact on your overall returns to the same extent as it would in a concentrated portfolio.Therefore, with it being relatively cheap to buy shares due to the prevalence of online share-dealing, purchasing a wide range of businesses that operate in a number of sectors could be a logical move. It may help to protect your portfolio from company-specific risk. It could also improve your return prospects.Financial strengthMaking a million from FTSE 100 shares is likely to take many years – even if you buy when stock prices are extremely cheap. However, to achieve that goal, your portfolio must first survive the difficult near-term prospects that exist as a result of an unprecedented lockdown.Therefore, assessing companies based on their financial strength could be a means of increasing your portfolio’s survivability. For example, companies with modest debt levels, strong cash flow, and low fixed costs may fare better than their peers in the coming months. They may even be able to improve on their competitive position to increase their chances of generating high returns in the long run.Economic moatsFTSE 100 companies with wide economic moats have often outperformed their peers. A competitive advantage may become even more attractive to investors over the coming years, since those businesses may be better placed to adapt to changing economic conditions.As such, focusing your capital on FTSE 100 stocks with unique products, lower costs than their peers, or strong customer loyalty, may be a shrewd move. It may enable you to obtain a more attractive risk/reward ratio that protects your capital to a larger extent during an economic downturn and increases your chances of recovery.This could improve your portfolio’s performance, and may increase your chances of making a million from investing in the stock market over the coming years. 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. Image source: Getty Images. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Peter Stephens has no position in any of the shares 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.center_img Our 6 ‘Best Buys Now’ Shares “This Stock Could Be Like Buying Amazon in 1997” Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! See all posts by Peter Stephens 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. Enter Your Email Addresslast_img

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