Lately, FTSE100 the index of leading UK shares is performing well. So good that it reached a recent all-time high in recent weeks.

Understandably, this should give investors food for thought. Could UK shares now be overvalued, potentially even at risk of crashing?

This is, as always, a possibility – just as there is also the possibility that prices will rise even more from here.

Regardless of what happens to the flagship blue-chip index, I see several reasons to believe that there is still money to be made investing in UK shares.

Single share market

From the FTSE 100 index we learn what a collection of shares of the largest companies in the country are doing.

But it doesn’t tell us how each of these stocks is performing, let alone those outside the FTSE 100.

Consider for example Diageo (LSE: DGE), a long-time member of the FTSE 100. Its shares are having a terrible year so far in 2025. They have also performed dismally over the past five years.

However, this does not necessarily mean that Diageo shares are not overvalued. No matter how far the rate falls, it can fall even further (that is, until it reaches zero).

Diageo clearly faces challenges, from delicate demand for premium spirits in key markets to the long-term trend of younger consumers avoiding alcoholic drinks.

Despite this, it is one of the UK shares I am buying this year precisely because I consider it to be undervalued in the long term. It is extremely profitable, has a stable premium brand and proven expertise in building brand loyalty.

Dividends also matter

Another way to make money owning UK shares in the current market is through the power of dividends.

FTSE 100 shares alone pay out well over £1 billion a week in dividends on average.

Dividends are never guaranteed. But many companies have been paying them regularly for decades.

In fact, some companies even raise their dividend per share every year for decades. Diageo is one such stock – and its dividend yield of 4.5% is currently well above the FTSE 100 average.

Building on the margin of error

In a stock market situation, it may also be helpful to remember some words of wisdom spoken by billionaire investor Warren Buffett.

He takes a long-term approach to investing, trying to buy shares in what he considers great companies at attractive prices and then hold them for years or decades.

Of course, share prices can change significantly along the way.

When valuing stocks, Buffett always tries to include a “margin of safety” in his calculations.

This means that even if the share price drops dramatically while he’s holding it, as long as his long-term investment thesis for the company doesn’t change, he won’t have to give it a second thought.