Starting from Zero

Ark_Welder

Money_Saving_Dude wrote: »

But there are also risks putting cash in a bank account -- you WILL get less than you put in -- don't forget inflation.

You might get less than inflation. Currently we are in an unusual situation where interest rates are very low. Under normal circumstances, they would be higher to help bring down inflation, and would probably be kept higher to help keep inflation down. Higher rates than now were available some years ago, and at a time when inflation was lower.

Money_Saving_Dude wrote: »

And for those that disagree name some managers who have beaten the market over the last 15-20 years.

I've used Trustnet for this so the furthest that they go back is to 1995, so all percentages are from then. Could spend some time doing this elsewhere, but...:cool:

Since July 1995 the total return (i.e. income included) from the FTSE All Share has been about +160%

• Aberforth Smaller Companies, Team managed, some from launch in 1990, +340%
• Lowland IT, James Henderson 1990, +270%
• Perpetual Income & Growth, Mark Barnett 1996, +300% (from 1996)
• Herald, Katie Potts 1994, +220 (volatile for a TMT-style fund!!)
• Capital Gearing, Peter Spiller 1982, +540%

More difficult are comparing the Asian and Emerging Market long term managers. Someone, somewhere can find an index that goes back far enough - the ETF trackers are all newish (and underperform...:))

• Templeton Emerging Markets, Mark Mobius 1989, +410%
• Aberdeen Asian Smaller Cos, Team managed since 1995, +730%
• Scottish Oriental Smaller Cos, Angus Tulloch 1995, +590%

Of course, with IT's you can get more volatility in the downturns due to gearing and widening discounts. There are some very good performers between 10 and 15 years too - research them...!