How I’d aim to turn an empty ISA into a £1m portfolio by targeting cheap shares

There are still plenty of cheap shares on the FTSE 100 despite the recent rally, and I’m buying as many as I can afford. I like going bargain hunting for cut-price UK stocks. This way, I avoid the risk of paying for frothy, overpriced shares. Typically, I’ll get a higher yield too. It’s not a guaranteed winning strategy though. Cheap shares are often cheap for a reason. Turning around a struggling company takes time. Value investors like me need bags of patience. Lately, I’ve been busy loading up my self-invested personal pension (SIPP). Now I’m turning my attention to this year’s Stocks and Shares ISA. Looking at the FTSE 100 today, one stock leaps out at me. Oil and gas giant BP (LSE: BP) trades at just 6.6 times earnings. That’s well below the 15 times normally seen as fair value. The share price has been falling in recent weeks, a period when Brent crude dipped below $80 a barrel. Over 12 months, the BP share price is down marginally, falling 0.25%. I think this is a buying opportunity but there’s one underlying risk. The world is supposed to be weaning itself off fossil fuels. BP is building its renewables...

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