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The London stock market seems out of fashion with many investors – and it shows in some share prices. Quite a few blue-chip British shares look cheap to me.
Cost and value are not the same thing. So when I say a share looks cheap, that does not necessarily mean that it has a low price. It means that I think I can pay less for it today than the long-term value I hope to get from owning it.
If I had spare cash to put to work, here are three British shares I would happily buy today.
British American Tobacco
Some UK shares have had a tough few years – and so have tobacco stocks more broadly.
So it may come as no surprise that British American Tobacco (LSE: BATS) is 14% cheaper to buy now than it was five years ago.
One reason tobacco stocks have fallen is the investor fear that declining cigarette usage could lead to sales falling. That is definitely a risk for British American. Its cigarette volumes…
