S&P index tracker vs FTSE dividend fund.
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CreditCardChris wrote: »So basically the FTSE 100 is full of dinosaur companies which are happy to coast along until they eventually die, as that's what happens if you stop innovating and progressing (see Blockbusters, Kodak, Polaroid) etc.
What's the future for Apple? A high margin business that needs to keep innovatating to stay ahead of the competition in order to sustain it's demanding share price.0 -
Thrugelmir wrote: »What's the future for Apple? A high margin business that needs to keep innovatating to stay ahead of the competition in order to sustain it's demanding share price.
I'm not picking out individual companies... I'm saying the UK as a country has stopped innovating so from a foreign investors point of view, why on Earth would you invest in a country which isn't creating much wealth?
OK let's try it this way, give me 1 reason why a foreigner should invest in the UK instead of America, Canada, India etc.0 -
No, it's 10.5% per year on (straight linear) average, or about 7.5% CAGR!CreditCardChris wrote: »If it went up 105% in the last 10 years, that's ~1% per year on average?
I'm not really looking to engage regarding your interpretation, agenda and speculation, but was just highlighting that the FTSE 100 index isn't particularly representative of the performance of UK plc.CreditCardChris wrote: »So basically the FTSE 100 is full of dinosaur companies which are happy to coast along until they eventually die, as that's what happens if you stop innovating and progressing (see Blockbusters, Kodak, Polaroid) etc.
Maybe in 20 years most of the FTSE 250 and 350 companies will replace those in the FTSE 100.0 -
Think again. 1%/year is not going to double in price over 10 years.CreditCardChris wrote: »If it went up 105% in the last 10 years, that's ~1% per year on average?
105% up in 10 years is 7.4%/year. Calculate as 2.05^0.1-1.
To some extent but it also includes some goodies. Its main problem is that it has no Tech companies which has been the real growth sector over the past 10 years.
So basically the FTSE 100 is full of dinosaur companies which are happy to coast along until they eventually die, as that's what happens if you stop innovating and progressing (see Blockbusters, Kodak, Polaroid) etc.
FTSE350=FTSE100+FTSE250.
Maybe in 20 years most of the FTSE 250 and 350 companies will replace those in the FTSE 100.
So why not invest in the FTSE250 or UK Small Companies in general? The average UK Small Companies fund is up 229% in 10 years - that's 3.29^0.1=1.126=12.6%/year0 -
Also you probably shouldn't discount currency movements as a significant amount of the FTSE gains are down to the pounds fall. The numbers would have been worse without the 20% drop vs the dollar0
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CreditCardChris wrote: »I'm not picking out individual companies... I'm saying the UK as a country has stopped innovating so from a foreign investors point of view, why on Earth would you invest in a country which isn't creating much wealth?
Who said that the UK has stopped innovatating? Innovatation requires start up capital. Private investors want guaranteed returns. The two unfortunately aren't compatible.0 -
It s main problem is that it has no Tech companies which has been the real growth sector over the past 10 years.
Couldn't agree more, and to be honest I think technology (green energies, space exploration, fuel systems, transport systems) etc will still be where the real growth is for the next 100 years as technology is by definition and constantly evolving industry, unlike oil or banking which kinda just serves the same purpose until the end of time.
I mean look at Elon Musk for example, creates an electric car and a space exploration company which become $70billion companies in a decade. Where the !!!! is our space industry?
The UK population simply has absolutely no interest in creating tech companies essentially is what it boils down to.0 -
CreditCardChris wrote: »... I guess the UK is now just a completely irrelevant country with no outside investment interest.
Harsh but true.
The UK is being shunned by the money markets and the only people talking up the UK are the likes of Boris Johnson and Chris Grayling :eek:
Elephant in the room is of course Brexit and the years of chaos that are inevitable, with little upside but heaps of downside0 -
You're comparing 100 UK companies with 500 US companies.
Or of our innovative and profitable companies being sold off to foreign interests, so no longer listed. ARM is an obvious example.CreditCardChris wrote: »Wow. I guess the terrible performance is a reflection of the lack of innovation coming out of this country.
Because you can buy the whole company.CreditCardChris wrote: »From an investor point of view why would you invest in a country which is just coasting along when you can invest in a country bursting with innovation?
As has been pointed out, it's 10% per year.CreditCardChris wrote: »Imagine having your money sitting in the stock market for 10 years and only making 1% a year
That's three former S&P 500 companies, the UK operations were just subsidiaries.... until they eventually die, as that's what happens if you stop innovating and progressing (see Blockbusters, Kodak, Polaroid) etc.Eco Miser
Saving money for well over half a century0 -
CreditCardChris wrote: »
I mean look at Elon Musk for example, creates an electric car and a space exploration company which become $70billion companies in a decade. Where the !!!! is our space industry?
How many start up companies do you think fail in order to create one Tesla?
Suggest you do some research. The UK Space Industry is very much alive and growing.0
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