MoneyMagpie

Mar 30

How saving £25K could have made you a millionaire last decade: Ranking the best FTSE 100 companies

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IG.com has analysed the top-performing stocks across the past decade to find those with the best ROI. But how much would your ROI be if you invested £25,000 in these companies 10 years ago?

Over the past decade, many companies have seen their popularity and financial strength escalate. Companies such as Netflix and Uber have become household names, and this meteoric rise has been reflected on the stock market.

With an investment pool of £25,000, what would a savvy investment 10 years ago have returned in 2020?

 

STICK TO WHO YOU KNOW

A world-famous brand might be seen as a solid investment in that they are dependable purely through their own popularity, but who is this the case for?

Research carried out by our team has shown that retail and technology brands have proven themselves to be the most valuable, with the likes of Apple, Amazon and lesser-known Nvidia boasting a great ROI across the last decade.

Across these types of companies, it is streaming giant, Netflix, that earns itself top spot, with a hefty return on investment of over 4000%. In simple terms, this means that a £25,000 investment would make you a millionaire today. As many other streaming platforms begin to enter the game, Netflix will have to work hard to maintain this dominance.

Huge increases in value are not, however, limited to the tech space, with yoga-wear retailer Lululemon seeing a monumental amount of growth in the last decade. With an increase of 1430% to stock value, they find themselves in the top 5 from the world’s most popular companies.

Below is a table showing the ROI of a £25,000 investment 10 years ago:

RankCompanyPercentage increaseROI if you invested £25,000 10 years ago
1Netflix4030.78%£1,007,700
2Amazon1832.14%£458,025
3Nvidia1713.28%£428,325
4Lululemon1430.65%£357,675
5Apple808.22%£202,050

 

SAVVY STOCKS

However lucrative the well-known companies mentioned above have been, these are not the only brands worth looking at for opportune investors, particularly with the gift of hindsight.

Aside from the aforementioned companies and sectors, we see industries such as property and even plant hire that have shown themselves to be the most profitable.

Below are the top 5 FTSE 100 companies and their ROI from a £25,000 investment a decade ago:

The 5 companies with the highest ROI if you’d invested £25,000 10 years ago are:

RankCompanyROI
1Ashtead Group£1,038,150
2JD Sports£736,325
3Melrose Industry£543,975
4Rightmove£414,675
5NMC Health£319,100

 

Founded in 1947, Ashtead Group, the international equipment rental company covering the UK, US and Canadian national networks ranks as the FTSE stock with the highest return of investment over the last decade. For investors at the start of last decade, a leap of faith to the tune of £25,000 would enter you into the millionaires club. This gain is over a quarter of a million pounds more than any of the other FTSE stocks studied.

Coming in at second place is one of the most established sports retailers in the UK, JD sports. While it has humble beginnings from a single shop located in Bury, England, it’s ROI across the last decade takes a £25,000 investment up to £736,325.

 

HIGH RISK, NO REWARD

The 5 companies with the lowest ROI if you’d invested £25,000 10 years ago

Although many of the brands and stocks discussed have enjoyed magnificent returns in the last decade, this is not the case for all FTSE stocks. Unfortunately many stocks have seen their value drop over the last 10 years, and none more so than international energy service, Centrica. A £25K investment made at the start of the decade would have seen you lose over £20,000, ranking bottom of our study.

Standard Chartered saw a ROI of £12,125, which, while double that of Centrica, is a disappointing loss nonetheless.

Below are the companies from the FTSE 100 with the lowest return on investment:

RankCompanyROI
1Centrica£4,275
2Standard Chartered£12,125
3Glencore£14,925
4Tescos£15,925
5Fresnillo plc£16,800

The emergence and decline of competitors, the rise and fall of prices, technological innovation and legal changes are just a handful of examples that can really impact the value of shares and it is worth considering these factors when putting down an investment in one of these companies.

With this knowledge and during the current climate, which are the companies that you’re looking to put your faith, and money in.

For more information on Hindsight Investment, visit the tool here.

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