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HomeSTOCK MARKET2 FTSE 100 shares that could help an ISA double in value

2 FTSE 100 shares that could help an ISA double in value


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My Stocks and Shares ISA has more than doubled over the past five years. I’ve done this by picking high-quality shares and patiently holding them. Today I’m looking at FTSE 100 shares that could help an investor’s ISA to multiply in value over the next five years.

First, investors could consider the credit-scoring business Experian (LSE:EXPN). Over the past few decades, data has become the new oil. And Experian holds barrels of valuable data relating to credit scores and fraud detection.

It’s a clever business that analyses this data, then creates various tools and subscriptions that it sells to clients around the world. Experian’s customers use these tools to make business decisions, reduce risk, and prevent fraud.

Sales have reached over $7.5bn, up 45% in five years. And net profit margin consistently hovers around 15%.

Tripled in 10 years

I particularly like its regular revenue streams. It offers reliable cash flow, which I prefer to lumpy, irregular income.

Bear in mind that new technology could raise competition for Experian. And although it holds competitive advantages, it’s not totally immune to disruption.

Its share price has more than tripled over the past decade. Given its strong markets, solid business model, and steady growth, I’d expect it to perform well over the coming decade.

My most successful FTSE 100 investment

Another FTSE 100 share that is going from strength to strength is Games Workshop (LSE:GAW). It makes fantasy miniatures and is engaged in the hobby of collecting, painting, and playing with them.

I first came across and bought this share back in 2017. It wasn’t in the FTSE 100 at the time as it was a much smaller business. Its share price has ballooned from £10 back then to over £160 today. That’s 16-fold in eight years.

This kind of share could really supercharge an investor’s ISA.

That said, I’m not expecting this share to repeat such a tremendous gain in the coming years. It’s a larger and slightly more mature business now.

But I’d still consider it a high-quality FTSE 100 share. For instance, it offers a substantial return on capital employed of over 60% and net profit margin of 30%. This is among the best I’ve seen for a retail company anywhere.

Earnings have been growing at around 17% a year, which is impressive. And looking forward, I reckon Games Workshop will continue to do what it has so successfully been doing.

It has a loyal customer base that continues to return to the company’s offerings. And demand for the hobby continues to grow globally.

Bear in mind that growth can slow at any time though. It relies on product innovation and brand loyalty. Alternative hobbies could arise over time so it’s something to keep an eye on.

Licencing looks promising

One part of the business I’m most excited about is licencing. It has a gigantic and rich content library that could be used for numerous movies, shows, and games.

One such licencing deal it now has is with Amazon for a film and TV series set In the Warhammer 40,000 universe.

Licencing sales have reached an all-time high for the company. And given its very high profit margin, it remains a key area of focus for the business.



This story originally appeared on Motley Fool

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