FTSE 100 - some 'survivors'

[ADrunkenMarcus]

I don't endorse the newspaper, nor can I vouch for the calculations in the article. However, FWIW:

https://www.dailymail.co.uk/money/inves ... 8-000.html

Best wishes

Mark.

[Arborbridge]

20/20 hindsight again. If only I could have predicted which ones would have been the 30 survivors

However, it's interesting to note that many are well known shares to HYPers and income funds investing today. Whether that is a recommendation each will have to judge!

Arb.

[tjh290633]

The problem with going back that far is the number of splits, demergers and takeovers which occurred. So ICI was an original member, which split off Zeneca in 1993, to be amalgamated with Astra later to form AstraZeneca, and itself taken over in 2008.

Then you would have Hanson, which demerged in the late 1990s, of which the only quoted part left is Imperial Group. The rump of Hanson was taken over c.2008.

What about Guinness and Grand Metropolitan which formed Diageo? Whither Bass? One could go on.

I think the consensus has to be "Needs more Research". Also a better definition of Survivorship.

TJH

[ADrunkenMarcus]

Quite so.

Diageo is a good example because it wasn't in the index in 1984 but its predecessors (I assume both of them) were. So, in reality, you could have bought Guinness in 1984 and held until today. It is, in truth, a 'survivor' - it did not go bust or get relegated. I suspect such an investment would have generated very good returns. One would need to look at Guinness's performance from 1984-97 and then Diageo's from 1997-2018.

Of course, some companies in the FTSE 100 are living on past glories. At the other end, companies such as Spirax Sarco Engineering have just been promoted to the FTSE 100 because of continued absolute and relative growth.

Best wishes

Mark.

[Bubblesofearth]

I don't endorse the newspaper, nor can I vouch for the calculations in the article. However, FWIW:

https://www.dailymail.co.uk/money/inves ... 8-000.html

Best wishes

Mark.

Interesting. Do you know where the rest of the FTSE 100 company data is, i.e. how investments in the other 70 shares would have fared? Presumably, whilst some would have gone to the wall, many have survived but in a different form after takeovers etc?

Be very interesting to see a complete list if such is available.

BoE