With another quiet day in the markets and after my trip down Memory
Lane, today I thought I'd start a Back to the Future series. This of
course was also a Film series
which started back in and was originally set in 1985 and involved the
star Michael J Fox travelling back in time to 1955. In addition in the
sequel he travelled forward in time to 21st October 2015 which just
happens to be tomorrows date. There is an amusing Wiki page dedicated to
the series and this link explores
the technology that the film makers guessed we might have by now. So we
didn't get the Hover board or the auto drying jacket but we did get the
video phone and I'm pretty sure that supermarket frozen Pizzas are a
good attempt at dehydrated Pizzas!
So what's this got to do with
investment I can tell you are thinking? Well I thought I would go back
in time and reference some old data and then return to the current day
to see what it might be able to tell us about the future. So with that
in mind I would suggest you might want to revisit the resources page on the site and look up the Global Year Book 2015 which appears in the useful websites section or click the highlighted link to download a copy.
Following
on from the UK Vice post this also has a section starting on page 17
titled Responsible Investing: Does it pay to be bad? This comes to a
similar conclusion to me, but it might be interesting for you to read in
more detail as activist investing can work too. Amongst other things
the document then also goes onto look at returns from global assets
classes over 115 years back to 1900. This is then repeated for the
various countries around the world reaching the UK on page 57.
This
shows that in the long run, the 115 years covered here, although that
is clearly too long for most folk except perhaps for babies born to day
or in the future with the advances in healthcare etc. Any way this shows
that the long term real (after inflation) return on UK equities has
been 5.3%. Meanwhile over a more realistic investor lifetime taking the
50 year period from 1965 to…
About the Author
Jjis
Worked in the City of London for over 20 years as a Fund Manager for a number of top institutions. In my career I managed billions of £'s across a whole range of different funds from Distribution funds, Investment Trusts, OEIC's / Unit Trusts & Pension funds. I was also involved in the management of Income funds more generally. In March 2009, I quit the City and escaped the rat race to earn my living from my own investments. Since then I have been managing my own income funds. I focus on UK stocks with a value / yield / quality bias and select from the whole market down to about a £50 million market capitalisation, although on occasions I stray into micro cap if I feel the investment case is compelling. This is because of liquidity considerations & the fact that I have VCT holdings which give me micro cap exposure. I also invest in Investment Trusts and ETF's for overseas markets or exposure to other asset classes, but again with the aim of achieving an income as well as diversification. I'm now trying to give something back by writing more regularly on my Blog / website - but can't make any promises about how regularly I will write here on Stockopedia, so check out my site. Compound Income more »
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