So far 2024 has been a good year for the FTSE 100 index of leading companies. Indeed, the index hit a new all-time high earlier this year.

But an index is just that, so individual companies within it may well do better or worse than the headline performance. So far this year, for example, a couple of FTSE 100 shares have fallen by a whopping 56% and 24%, respectively.

I have bought them both, because I think they are potentially great bargains. Here is my reasoning.

Burberry shares have fallen by over half

The first share in question is Burberry (LSE: BRBY).

From iconic raincoats to glad rags for the glitterati, Burberry has built a distinctive niche in the global fashion scene. But this year, its raincoats have not been enough to protect the firm from some very heavy weather.

Partly that is down to a sharp downturn in luxury spending across the globe, due to a soft economy. Burberry has faced additional company-specific challenges. For example, its positioning as a high end brand but not one in the top league of luxury players means that it has been particularly squeezed compared to both pricier or cheaper firms.

That has translated to alarming business performance lately.

Management has been changed, the dividend cancelled, and comparable store sales in the most recent quarter declined by over a fifth compared to the prior year period. This FTSE 100 share has not crashed more than half this year just on worries of a downturn: it is a business in trouble that could yet turn out to be a crisis.

So, why did I buy?

We know luxury spending tends to be linked to the overall health of the economy, which is cyclical. Sooner or later I expect that to improve.

Even in its dire first half, Burberry remained solidly profitable and free cash flow positive. It has a unique brand and proven business model. Over time I expect financial performance to improve. I think the share price fall has been overdone.

Asian-focussed financial services company with strong story

Burberry’s troubles have been spread across markets, but weak performance in Asia has certainly not helped.

Asia is also the focus for FTSE 100 financial services company Prudential (LSE: PRU) and weakness there has not helped the shares, down 24% so far in 2024.

I have long liked the look of the company. Its focus on growing a proven Asian business into emerging markets with large untapped potential makes sense to me.

The brand is respected and Prudential has a large customer base in markets such as Hong Kong. A digitalisation drive could help improve profitability even for lower value customers over the long run.

The first half saw profits collapse over 80%, though the company remained in the black. It faced challenges ranging from macro-economic uncertainty in China to pushing through unpopular price increases in some southeast Asian markets.

The fallen share price reflects ongoing risks amid a mixed economic outlook. But the Pru’s proven business model, large space for ongoing growth, and well thought out strategy mean I see its current price as a potential long-term bargain. That is why I invested.