2 top UK shares to buy and hold for 5 years!


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Despite recent turbulence, I think the UK market looks pretty attractive at the moment. Every time there is a reactionary fall in the market, the rebound has been strong and swift. The crash during the last week of February is a good example. Shares recovered quickly and the FTSE 100 index is already at the 7,500 mark.

I think now is a great time to add some future-focused growth shares to my portfolio. Here are my top UK shares to buy right now operating in exciting sectors that look primed for growth. 

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Blue-chip UK share to buy

I have been tracking Diageo (LSE:DGE) since May 2021 when it was trading at 3,250p. It is currently trading at 4,000p, up 23% in 12 months. It has outperformed the FTSE 100 index by nearly 15% during this period and has shrugged off the pandemic crash. 

I value stability a lot, especially in 2022. And I think Diageo’s business strategy fosters steady growth. The company is focusing on strategic acquisitions in target markets like China, India, and South America. These are areas set for big expansion over the next decade and Diageo is working on acquiring top brands overseas. And its dominance of the North American and European markets makes it a steady income generator.

In the recently released half-yearly results (ended 31 December 2021), the company reported net sales of £8bn, up 15.8% from the previous six-month period. Organic sales grew 20% and the company’s operating profit jumped 22.5% to £2.7bn.

My big concern right now is the lack of healthy, non-alcoholic options in its brand portfolio. Lack of diversity means the company will miss out on this growing beverage segment. And acquiring regional distilleries overseas comes with regulatory risks that could increase operating costs. 

But overall, the company looks healthy. Its business strategy is robust and sales have remained high throughout the pandemic period. The business looks well-equipped to maintain its current trajectory over the next decade which is why I think it is one of the top UK shares to buy for my long-term portfolio.

Hacking the video game market

Despite the surge in popularity, some investors are still hesitant to consider gaming shares. This is understandable given how few companies dominate the industry. But Keyword Studios (LSE:KWS) is a gaming share that largely avoids the pitfalls of releasing games. 

Despite being one of the largest gaming shares in the UK, this company does not directly develop or launch games. Instead, it provides a range of services from animation to voice acting for large game studios like Microsoft and Electronic Arts.

Industry numbers show that the number of large game titles released per year is increasing. This means that Keyword Studios could be involved in game production for top companies over the next decade. 

However, the risk of games being shelved during production is high, which could lead to losses for the firm. Also, at 2,368p, its shares are trading at a price-to-earnings ratio of 65 times, which points to it being very overvalued. Any small drop in revenue growth could trigger a big fall.

But the company operates in an exciting industry and has partnerships with global leaders. I would consider an investment in this company if its share price drops to 2,000p. 





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