2 simple stocks to buy soon with £2,000

Investing doesn’t need to be complicated. In fact, I think some of the best stocks to buy are the ones that don’t require hours and hours of complicated research to understand.

Simple but special

Food-on-the-go retailer Greggs (LSE: GRG) is, in my opinion, a great example of a company with an easy-to-grasp business plan. In short, the FTSE 250 members sell baked treats through an estate of over 2,300 stores around the UK.

As fundamental as that is, Greggs has been a real winner for its shareholders over the years. I know, because I am one of them.

Inevitable short-term wobbles, the price continues to rise, due to the company’s ability to continuously grow earnings, exploit new opportunities (vegan sausage rolls), and generate excellent cash flow.

In play

Based on the latest update, I have no problem adding to my current position if I have the money to do so.

The new full-year numbers show that total sales will increase by 23% in 2022. Despite the impact of higher material, staff and energy costs, pre-tax profit also increased by 1.9%.

The fact that Greggs was able to report these figures during the economic crisis is proof that the company doesn’t have to do anything it can do well.

Just offering good value for money is enough for customers. And that’s pretty good for me as an investor.

One drawback

Unfortunately, much of this good news comes at a price. Greggs shares currently trade at 23 times forecast earnings.

Of course, there’s no rule that says stocks can’t go higher. Regardless, I’d rather have a product that’s almost guaranteed to stay popular in the latest technology that I don’t even know about, let alone want.

Build wealth

Of course, it has to stay diverse, no matter what kind of business I have. It would not be wiser if my portfolio contained only fast food retailers and nothing else.

This is why I also like registered housebuilders such as Taylor Wimpey (LSE: TW) now.

Clearly, owning a slice of one of England’s big players hasn’t been sailing in the last six months, or so. Horrifying interest rates have dampened demand and sent myopic investors scrambling for the exits.

However, all this plays directly into the hands of people like me who, after buying, are ready to sit on their hands for years.

Patience is required

The time horizon is important because, wherever you slice it, Britain needs more housing than ever. With such a valuable land bank, this will be a significant tailwind for Taylor Wimpey. And that makes this sector easy to understand and I want to buy a slice before the market recovers.

Now, I can take stocks for 12 times earnings. I suspect that there are indications that interest rates may decrease quickly.

On top of this, the stock currently yields 7.5% based on analysts’ estimates of how much cash the company will return to owners this financial year. For perspective, it is more than double the result of FTSE 100 index as a whole.

I am very tempted to add Taylor Wimpey to my portfolio when funds become available.