Forget Bitcoin! I’d buy these cheap shares from the FTSE 100 instead

first_img Image source: Getty Images. Cliff D’Arcy | Thursday, 26th November, 2020 | More on: IMB 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. Simply click below to discover how you can take advantage of this. Our 6 ‘Best Buys Now’ Shares Forget Bitcoin! I’d buy these cheap shares from the FTSE 100 instead Enter Your Email Address Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge!center_img “This Stock Could Be Like Buying Amazon in 1997” 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. See all posts by Cliff D’Arcy 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. Cliffdarcy has no position in any of the shares mentioned. The Motley Fool UK has recommended Imperial Brands. 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. What a week it’s been for fans of the world’s leading cryptocurrency, Bitcoin (BTC). Before today, the Bitcoin price was heading ‘to da moon’ (as Bitcoin fans say). On Tuesday, it rose roughly $1,000, climbing above $19,000. Yesterday saw more frenzied price action, as it  jumped again. It leapt to over $19,500, close to its all-time high just short of $20,000 seen in December 2017. However, the price nosedived today, dropping close to $16,300 in early-morning trading. As I write, BTC trades around $16,875, down roughly 13.5% from yesterday’s high. That’s still high, of course, but here’s why I’d rather keep buying cheap shares than trading Bitcoin.Bitcoin is for speculators, not investorsAs a former mathematician, my expertise in this field lies in cryptography (code-breaking) and not cryptocurrencies per se. Nevertheless, I well understand the crypto concept and that of a blockchain (or highly distributed ledger). However, ever since Bitcoin exploded onto the investing scene in 2009, I’ve regarded it as speculation, rather than an investment. Yes, Bitcoin’s value has soared immensely in the 11 years it has been in existence — and it has more than doubled in value in 2020.5G 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…But my big problem with it is that, as with gold and unlike many mainstream investments, it pays no income. Its intrinsic value is unknown and is also subject to uncommon levels of frenzied speculation. Indeed, the cult-like belief in Bitcoin expressed by its most zealous supporters reminds me of investor fervour right before the 2000/03 dotcom crash. That’s why I’d much prefer to stick with buying cheap shares for their passive income and capital gains.Cheap shares: this stock won’t go up in smokeNow from one of the most modern and innovative inventions to one of the most boring investments imaginable — the ‘old economy’ cheap shares of Imperial Brands (LSE: IMB). As world’s fourth-largest tobacco company, Imperial certainly fails to qualify as an ethical investment. But this British business has been around since 1901. For 119 years, it has survived countless global crises, only to keep growing. It produces tobacco and cigarettes from more than 50 factories worldwide, selling around 330bn cigarettes per year across more than 160 countries. In short, Imperial is embedded deep in the global economy. It’s also had a pretty good 2020, as its final results show.Just over four years ago, Imperial’s share price reached a new peak of 4,130p. However, by the end of 2019, its shares had declined to 1,869p. They then collapsed with the rest of the market in the March meltdown, before leaping back to 1,725p at end-April. Since then, Imperial’s cheap shares have been getting cheaper, falling to a 52-week intra-day low of 1,203p at the end of October. On Thursday, they closed at 1,420p, valuing the business at a mere £14bn. I see this entry point as a genuine bargain.I’d buy this value share todayFor me, these cheap shares are a solid buy for their juicy dividend income and lowly rating. They trade on a price-to-earnings ratio of 9.35 and an earnings yield of 10.7%. What’s more, Imperial shares pay quarterly cash dividends to shareholders, adding up to a forward dividend yield of 9.7% a year. I think that huge passive income is way too generous to turn down. That’s why I’d forget Bitcoin and buy these shares today, ideally, inside an ISA, to enjoy a tax-free passive income and capital gains!last_img

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