May 21, 2013

Best FTSE 100 shares over 10 years revealed

The best FTSE 100 shares over the past 10 years have been revealed, as the index celebrates 10 years since it bottomed out on March 12th 2003. A table of the best performing shares over the past 10 years (based on total return) is shown at the bottom of this article.

Tom Stevenson, Investment Director at Fidelity Worldwide Investment, comments on why investing when sentiment is the most depressed can be a good strategy for investors:

“It is only three years ago that the investment industry was wringing its hands over a ‘lost decade’ for stock markets. Ten years on from the bursting of the dot.com bubble in 2000, it was hard to make the case for investing in equities. Today it looks very different, with the FTSE All Share index having nearly doubled since the market low of March 12 2003. For investors who sensibly reinvested the income from their shares, the returns over that period were even more spectacular. The total return of the All Share index has been 193% since March 2003, nearly trebling the initial investment. The best performing shares and funds have done considerably better even than this.

“The key lesson I take from the performance of stock markets over the past ten years is that when sentiment is most depressed the potential rewards are usually greatest. When the market bottomed in March 2003, the British invasion of Iraq was imminent, the TMT boom had ended badly and almost everyone was pessimistic about the outlook for investing. The reality was that this was a great time to invest. Timing market turns like this is impossible and requires a stronger contrarian streak than most of us possess. The answer is to invest regularly through the cycle and to maximise your total return by ensuring that you reinvest dividend income.” 

Best performing FTSE 100 shares of the past 10 years

  Total Return Index Level Total Return Index Level  
Name

18/02/2013

12/03/2003

Total Return% Change
ROLLS-ROYCE HOLDINGS

1701.15

77.39

2098.15

ARM HOLDINGS

2426.56

124.55

1848.26

ABERDEEN ASSET MAN

2713.72

144.28

1780.87

RANDGOLD RESOURCES

1143.14

62.69

1723.48

TULLOW OIL

8253.93

486.45

1596.77

WEIR GROUP

93086.63

5621.57

1555.88

AGGREKO

1461.32

90.49

1514.90

CRODA INTERNATIONAL

418250.8

27125.66

1441.90

BABCOCK INTL.

880.34

59.12

1389.07

ANTOFAGASTA

427105.2

35711.9

1095.97

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