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. S&P 500 Over the past five years, it has increased by 100%. This is an average annual return slightly below 15%, which in my opinion should be satisfied with every long -term investor.
At that time FTSE 100 He managed a slightly more modest 85% – or 13% per year. But some of its ingredients have significantly exceeded the US index.
FTSE 100 exceed the results
Guess how many FTSE 100 shares have overcome the S&P 500 over the past five years. I will wait …
You are wrong (probably) – the number is actually 25, which is more than I expected. And the list of exceeding results is quite an eclectic mixture:
| Rolls-Royce | Group 3i | Centric | BAE systems | Natwest Group |
| Marx & Spencer | Babcock International | Airtel Africa | Barclays | Standard charter |
| Diploma | Next | Lloyds Banking Group | Intercontinental Hotels Group | International Group of Consolidated Airlines |
| Weir group | Name | HSBC | Pershing Square | Compass group |
| Beazley | Shell | Melrose | Relx | Antofagasta |
There is no one reason why these supplies were better than the S&P 500 (and the rest of the FTSE 100). But there is a common topic that affects many of them.
Covid 19
Most stocks on this list are now much better than five years ago. The reason is that they were-in one way or another-transmitted by Covid-19.
Banks like Barclays AND Nestwest They were dealing with one of the lowest interest rates for decades. It fought on loan margins that returned to this when things have recently normalized.
Next This is another example. The company’s stores were designated as “irrelevant” during a pandemic, and therefore closed, causing business to fall to a enormous extent.
Travel restrictions have also significantly influenced companies Rolls-Royce AND International Group of Consolidated Airlines. But since then they both managed robust recovery.
Pandemia (hopefully) will not be repeated, but a massive question for investors is which – if at all – from these actions can still be good. In particular, one distinguishes me.
Looking to the future
Wrestling is Compass group (LSE: CPG). The Catering Company has benefited from the resumption of live events from the end of the pandemic, but I think it has some long -term strengths competitive.
The massive advantage of the company is its scale, which it uses to negotiate better prices of ingredients than its competitors. This gives you the ability to download lower prices to customers.
Over time, the company expanded its presence – and thus strengthened its advantage – acquiring other companies. This allows you to utilize local specialist knowledge and a global scale.
Buying other companies can be risky. The overpayment for the takeover can withdraw the company and it is something that cannot be completely ignored.
Ultimately, however, the leading position on the growing market is a powerful combination. And that’s why I think that investors should consider this as a potential in the future.
Long -term investing
Warren Buffett claims that investing well is to be greedy when others are afraid. And this is a theme that has been through the highest FTSE 100 results in the last five years.
The question that investors must take into account is which companies still have robust growth prospects. I think the list is smaller, but there are still opportunities that are worth considering.
