With the FTSE 100 having hit new all-time highs this year despite a lacklustre economy, it is fair to ask whether the index of leading UK shares is fairly priced.

On one hand, the index has often looked relatively cheap in recent years – and still does when compared to key US indices.

Then again, the FTSE 100 lacks the plethora of heavyweight growth stocks that have helped propel US indices such as the S&P 500 in recent years.

So, could there still potentially be a wealth-building opportunity for an investor by buying into the FTSE 100 today?

Timeframe matters in the market

I think the answer is yes.

Why? In short, I am a long-term investor.

So, rather than trying to time the market, I look for shares I hope can offer good value over the long term. I do not worry too much about whether I am getting them at the absolute best possible price.

Not only that, but as an investor, I am not buying the whole FTSE 100 right now (for example by investing in an index tracker). Instead, I am looking for great individual shares I can own as part of a diversified portfolio.

Just because an index is performing well does not necessarily mean that it lacks individual shares that are still attractively priced.

Taking the Warren Buffett approach

Indeed, in that sense I am basically taking the approach favoured by billionaire Warren Buffett. Buffett likes to buy into great businesses at attractive prices.

As I hinted above, that does not necessarily mean buying in at a rock bottom price.

Rather, it means that, when allowing for a margin of safety, I should be trying to pay less today for a share than I think it will prove to be worth over the long term (allowing for the cost of tying my money up in it for years or even decades).

One FTSE share to consider in this market

For example, at the moment one share I think is worth considering (at least for investors who do not ethically object to tobacco shares) is Imperial Brands (LSE: IMB).

The owner of brands such as Davidoff and Drum cut its dividend in 2020. No dividend comes with a guarantee it will last – even in an industry associated with large free cash flows.

Still, the FTSE 100 firm has been growing its dividend per share annually since then. At 5.7%, its dividend yield comfortably beats the 3.1% offered by the FTSE 100 right now.

While cigarette use is declining, the market remains large and Imperial has already had long experience of how to make the most of challenging market conditions, for example by using the pricing power its brand portfolio gives it.

The company also has a non-cigarette product portfolio. While that remains small in most markets, it offers substantial scope for growth.

From a long-term perspective, I see Imperial as a FTSE 100 income share worth considering.

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Christopher Ruane does not hold any positions in the companies mentioned.