3 UK shares I’d happily buy to hold for the next 10 years!

Being an effective long-term investor is about buying shares in quality companies for less than they are worth. But in today’s uncertain environment, finding the right sector or trend may be impossible. To overcome this, I prefer to have an ‘all weather company’ that can perform in both good and bad market conditions. I have identified three UK shares that I am considering buying, with the basis to do regardless of what the next decade has in store.

GSK

As we have experienced in recent years, maintaining health is always important, regardless of economic performance. The development of vaccines, in addition to the creation of pharmaceutical products, will be a fundamental part of this. With a growing and aging population, these areas will be the focus of attention in the coming decades.

To grasp this growth, I look from GSK (LSE:GSK), operates in four main areas:

• Pharmacy;
• Pharmaceuticals R&D;
• Vaccine;
• Consumer Health.

The company is valued below the sector’s average price-to-earnings (P/E) ratio of 13.9 at 12.8, and is probably 60% undervalued based on the discounted cash flow model with a current price of 1,405p versus a fair value of 3,498p.

One of the problems is the high level of debt. However, with this gradually coming under control, and experienced management at the wheel, I expect this will be an opportunity for me to buy shares at a discount.

Legal & General

In the trend of products and services that are required regardless of market conditions, the insurance sector offers attractive opportunities for investors.

I like the thought of it Legal & General Group (LSE: LGEN), diversifying to provide several agile income streams:

• pension;
• Investment Management;
• Capital;
• Insurance.

In addition to the large 7.2% dividend yield, the company also appears undervalued when considering future cash flows. With a current share price of 260p compared to a fair value of 651p, there could be a 60% upside.

Companies in financial groups can be difficult to understand and monitor. However, they often benefit from a more challenging economic environment, so they are an effective way to offset risk.

United Utilities

The third all-weather company I recommend is United Utilities (LSE: UU). It provides water and wastewater services in the UK. Utilities are never the most exciting investment, but they are always desirable.

United Utilities has a lower P/E ratio than the sector average of 28.9 at 14.3, and has future earnings growth of 32% – higher than the market’s 10.3%.

As can be expected, growth expectations are also priced in. So United Utilities can offer less opportunity for a dramatic rise in share price, but with a generous dividend of 4.12%, it can offer a stable second income for me.

Conclusion

Regardless of what the next decade brings, having a growing company with reliable demand, strong fundamentals, and good management is a recipe for success. I like the look of the company and will add it to my portfolio at the next opportunity.