Final week was one other blockbuster for the FTSE 100 index of main shares. The blue-chip benchmark hit a brand new all-time excessive. It has elevated 13% over the previous yr.

Regardless of the robust efficiency of the index total, a number of the corporations in it proceed to seem like potential bargains to me.

Related British Meals

For example, take into account Related British Meals (LSE: ABF). I added it to my portfolio just lately.

I reckon the present valuation appears low cost. After a 16% price decline over the previous yr, the FTSE 100 member now trades on a price-to-earnings ratio of lower than 10.

I do see dangers. Sugar pricing this yr is anticipated to be weak, consuming into earnings. The corporate’s Primark clothes enterprise is working in an setting the place it’s squeezed on one entrance by low cost rivals like Shein and on the opposite by an more and more advanced (and subsequently pricey) world provide chain.

However Primark by itself strikes me as a fantastic enterprise. Add to that different manufacturers ABF owns like Twinings and Dorset Cereals and I reckon the worthwhile enterprise appears like a discount at its present price.

JD Sports activities

One other retail operator that has been feeling the warmth is JD Sports activities (LSE: JD).

After a fantastic few years of inventory market efficiency, the going has obtained quite a bit more durable for JD Sports activities. The FTSE 100 retailer has seen its share price crash 33% over the previous yr.

A number of revenue warnings have shaken Metropolis confidence in administration. Add to that the expense of an bold store opening programme and a threat that weak shopper confidence might harm spending on branded sportswear and the price fall makes some sense.

Nonetheless, the corporate has a confirmed system and world attain, and is solidly worthwhile. It expects to ship full-year revenue earlier than tax and adjusting gadgets north of £900m.

Set towards that, I reckon its £4bn market capitalisation is a discount in plain sight.

How I take into consideration the FTSE 100

What’s going on?

How can particular person FTSE 100 members be doing so poorly when the index itself has been going gangbusters?

It is sort of a cricket workforce or mannequin railway membership: total it could be doing effectively, however particular person members is likely to be doing poorly. However for them, the general efficiency could be even greater.

I might put money into a FTSE 100 tracker fund to try to profit from the long-term potential I see for the index. As a substitute, although, I’ve been shopping for particular person FTSE shares like ABF and JD Sports activities.

Whereas their latest share price efficiency has been lacklustre to say the least, I stay upbeat about their long-term potential.

By pouncing now, at what I see as discount basement valuations, I hope that my buy-and-hold philosophy of long-term investing means I may gain advantage from future price restoration.