In recent years, there have been cases when FTSE100 the index of leading UK shares seemed affordable to me.

During the sudden market turmoil we saw in 2020, a leading stock index suddenly started looking like a potentially great value. Such a chance may come only once every ten years, or even less often.

The FTSE 100 index has performed well this year. Indeed, the blue-chip index has repeatedly set modern all-time highs.

So, could the chance for real bargain hunting have passed?

I still see possibilities!

I don’t think so.

This is partly because I take a long-term approach to investing. That’s why I don’t compare today’s stock prices with what they were a month ago or a year ago.

Rather, I compare the stock price to what I think the company will be worth decades from now, after taking into account the opportunity cost of holding money temporarily.

Moreover, I do not buy an index, for example, by investing in an index-tracking fund.

Instead, I have a portfolio of individual stocks. I buy or sell each based on my assessment of the long-term prospects for the business.

While the FTSE 100 has had a good year, that doesn’t mean that all companies in it have had a good year in 2025. Some of them have seen their share prices plummet.

Looking long term

To take Diageo (LSE: DGE) as an example.

I have enjoyed this business over the years. Having beer e.g Kilkenny and a wide portfolio of premium alcohols such as SmirnoffDiageo has powerful revenues, attractive profit margins and unique assets.

This, in turn, helped it finance its growing dividend. Diageo’s track record of annual dividend per share growth goes back several decades.

However, for a long time I liked a FTSE 100 company – but not its share price.

That changed this year. Diageo’s falling share price gave me the opportunity to add this company to my portfolio.

Was it a wise move? Only time will tell.

I am confident about the long-term prospects for the business. However, the share price decline reflects Diageo’s changing business environment. Younger consumers are less interested in alcohol, which poses a risk to future sales volumes and revenues.

Diageo is soon battling other threats, including tariffs eating into profits and economic weakness hurting demand for exorbitant white spirit brands.

Great opportunities in the stock market can arise when different investors have very different views about a company’s long-term prospects. Importantly, this does not mean this everyone this situation is a great opportunity.

It is possible that Diageo’s market has changed fundamentally and its glory days are behind it. If that’s the case, buying FTSE 100 shares might not be as good a deal as I think.

However, let’s hope that the drinks giant will be able to successfully navigate the changing market. Based on this, I plan to hold my Diageo shares for the long term.