Is it possible to become a millionaire (or near to) through investments?

BananaRepublic

Glen_Clark wrote: »

Politics is often very relevant to investment.
Here is an example of judging the political climate right;
Duncan Bannatyne made his first £millions by starting care homes at just the right time - when Thatcher was privatising everything.
Here is an example of getting the political climate wrong;
When Thatcher was selling our power and water supplies off cheap, people made a quick profit on the shares.

I quote:

"That may be so, but whats it got to do with future investments? - isn't it todays politicians like Osborne who will have most effect on future investments, not past ones like Bliar? "

Glen_Clark

BananaRepublic wrote: »

I quote:

"That may be so, but whats it got to do with future investments? - isn't it todays politicians like Osborne who will have most effect on future investments, not past ones like Bliar? "

How else can I expain how politics affects investments than by using past examples?

Malthusian

Politics is often very relevant to investment.

So is the weather. However, the weather is random and impossible to predict, so trying to make money out of the markets by predicting the weather is a fool's errand. Same goes for politics.

We could easily have a thread where we all talk about our bits of seaweed and the colour of the sky in the morning and that huge storm in 78, and why we've put our money in ice cream manufacturers or cagoule shops. But it would be just as dull and pointless as this thread.

BananaRepublic

Glen_Clark wrote: »

How else can I expain how politics affects investments than by using past examples?

So you tell someone off for referring to a past Prime Minister. But then you go and do it yourself. Or perhaps it is because it's okay to dump on Tories, they're nasty, but Labours are lovely and cuddly.

Anyway, I don't see what relevance most of your comments have to the current thread, other than a very tenuous one.

Glen_Clark

BananaRepublic wrote: »

it's okay to dump on Tories, they're nasty, but Labours are lovely and cuddly.

Where have I ever suggested that?

talexuser

racing_blue wrote: »

It ought to be about becoming a millionaire through investment

Back to o/p, there are examples of millionaires purely through reinvesting Peps and Isas. The question is they got there by being able to fund them to the max every year since the mid 80s. So it boils down to how much you earn and can save. But 30 years of compounding sure does help!

coastline

talexuser wrote: »

Back to o/p, there are examples of millionaires purely through reinvesting Peps and Isas. The question is they got there by being able to fund them to the max every year since the mid 80s. So it boils down to how much you earn and can save. But 30 years of compounding sure does help!

Quick look on calculator and £400 a month increased by 3% for inflation over 40 years will nearly hit target £1m at 5% annual growth.
Another way to look at it a £100,000 house ( yes not that many ) will be worth over £700,000 at 5% growth over 40 years.
Realistically it wouldn't be easy for most people to save £400 a month but I would still start with £50 a month for a savings pot.

Glen_Clark

Million$baby wrote: »

I am not talking about the already wealthy who can invest 100's of thousands of £, but the man on the street who doesn't have much money to his name but wants to invest wisely and make big returns? Can you share your knowledge on people who may have invested modestly and with a bit of know how and risk taking have become financially well off through smart investments. Investing is a subject i am very interested in, but it can also destroy a person if they are not knowledgeable.

The really spectacular returns are invariably made by those who have invested in their own business, not someone else's. Like Bernard Matthews who famously turned £2.50 (which he used to buy a few turkeys) into a company worth about £800 million.

EdGasket

talexuser wrote: »

Back to o/p, there are examples of millionaires purely through reinvesting Peps and Isas. The question is they got there by being able to fund them to the max every year since the mid 80s. So it boils down to how much you earn and can save. But 30 years of compounding sure does help!

The FTSE had a very good bull run from 1980 - 2000 (apart from the 1987 blip) since then it hasn't risen at all and has been hard work to make any money in. Same goes for interest rates which were as high as 15% on some Building Society accounts but are now next to nothing. Very difficult to make 1 million from just normal savings at the moment or with average 'luck' on shares as there is not much gain to compound.

Malthusian

Like Bernard Matthews who famously turned £2.50 (which he used to buy a few turkeys) into a company worth about £800 million.

I'm fairly sure some of that £800m will have come from external investment rather than solely reinvesting the profits from the first few turkeys. But the point stands.