How saving £25k could have made you a millionaire last decade: The Best ROI of the FTSE 100 stocks - Business Leader News

How saving £25k could have made you a millionaire last decade: The Best ROI of the FTSE 100 stocks

IG.com has analysed the best-performing stocks over the last 10 years across the FTSE 100 companies. But how much would your ROI be if you invested £25,000 in these companies 10 years ago?

The world is always looking for the next big company set to skyrocket into success, with the last decade seeing the likes of Uber and Netflix grow into some of the world’s most profitable and renowned businesses on the planet.

But what were the companies that would have earned you the highest return on investment if you’d invested in them 10 years ago?

The Value of Household Names

One might invest in a well-known brand for the fact that they see them as a stable choice, but who are the most popular brands that have offered the biggest return over the last ten years.

Our research has shown that it is technology and commerce that continue to rule the roost, with the likes of Nvidia, Apple, Amazon and Microsoft all breaking into the top 10.

However, it is Netflix that has shown the most meteoric rise of all, with an ROI over the last 10 years of over 4000%. This would mean that an investment of £25,000 made in 2009 would make you a millionaire today, a staggering increase for a company with ever-growing competition. Another notable inclusion in the top 10 was yoga-wear brand, Lululemon who have seen their value stretch to an increase of 1430% on investments made a decade ago.

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

Rank Company Percentage increase ROI if you invested £25,000 10 years ago
1 Netflix 4030.78% £1,007,700
2 Amazon 1832.14% £458,025
3 Nvidia 1713.28% £428,325
4 Lululemon 1430.65% £357,675
5 Apple 808.22% £202,050

Fruitful FTSE Stocks

While the renowned companies included in the above tables may have proven valuable to some investors, focusing solely on the FTSE 100 we can find lesser-known brands with higher ROI’s. Rather than the global tech and commerce companies showcased previously, it is more niche industries such as property and plant hire that have proven 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:

Rank Company ROI
1 Ashtead Group £1,038,150
2 JD Sports £736,325
3 Melrose Industry £543,975
4 Rightmove £414,675
5 NMC 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. An investment of £25,000 a decade ago in this company would see a staggering ROI of £1,038,150. This is nearly £300,000 more than any other FTSE stocks ROI analysed. Ashtead Group was first listed on the London Stock Exchange in 1986 and continues to successfully deliver sustainable value to its customers.

In second place is JD Sports, one of the UK’s most established sports fashion retailers, originally starting as a single shop in Bury, England. The ROI for JD Sports sits at £736,325, reflecting its success over the past decade as it has continued to expand across the world, with its first shop in Asia opened in 2016.

High risk, no reward

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

Unfortunately, not all investments in the FTSE 100 stocks would have paid off over the last decade, with a number of companies seeing investors face a loss. Centrica, the international energy services business ranks at the bottom of the table with an ROI of just £4,725. This is significantly lower than any other stock, with Standard Chartered seeing an ROI of £12,125, which is over double the figure of Centrica. Over the last decade, Centrica’s shares declined greatly, differing from the previous decade where shares had grown by an average of around 4% each year.

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

Rank Company ROI
1 Centrica £4,275
2 Standard Chartered £12,125
3 Glencore £14,925
4 Tescos £15,925
5 Fresnillo 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.

So, which companies will you be investing in now and what will the ROI look like in 10 years time?

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

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