Good morning
I have a hatred of this type of advice,
3 Reinvest your dividends
4 Take a measured level of risk
5 Look to invest for the long term
6 Stick out the tough times
on the basis that the person giving it won't be around when it turns out not to be true.
Below are the numbers if you bought £5K worth of Barclays shares starting in 2002 and reinvesting dividends, and selling at today's price you would lose around £5,255 more than your original investment!
I appreciate that this is the performance of a share not a trust or fund but in 2002 buying banks was seen as something that was safe over the long term.
. Share Dividend
Pot Pot Qty of Price Dividend Amount Per Dividend New Shares
Cost Value Profit Shares Pence Date Share(p) Amount(p) Bought
£4,998 £4,998 899 556
£4,998 £3,811 -£1,187 899 424 Aug-02 6.35 5708 13
£5,055 £3,184 -£1,871 912 349 Feb-03 12.0 10949 31
£5,165 £4,322 -£842 944 458 Aug-03 7.05 6653 15
£5,231 £4,629 -£603 958 483 Feb-04 13.45 12889 27
£5,360 £5,112 -£248 985 519 Aug-04 8.25 8126 16
£5,441 £6,064 £623 1001 606 Feb-05 15.75 15760 26
£5,599 £6,037 £438 1027 588 Aug-05 9.2 9445 16
£5,693 £6,402 £709 1043 614 Mar-06 17.4 18143 30
£5,875 £6,809 £934 1072 635 Aug-06 10.5 11259 18
£5,987 £8,611 £2,623 1090 790 Mar-07 20.5 22344 28
£6,211 £6,833 £622 1118 611 Aug-07 11.5 12860 21
£6,339 £5,571 -£768 1139 489 Mar-08 22.5 25634 52
£6,596 £4,362 -£2,234 1192 366 Aug-07 11.5 13705 37
£6,733 £6,011 -£722 1229 489 Mar-08 22.5 27656 57
£7,009 £4,706 -£2,304 1286 366 Aug-08 11.5 14786 40
£7,157 £4,244 -£2,914 1326 320 Nov-09 1.0 1326 4
£7,170 £3,578 -£3,592 1330 269 Feb-10 1.5 1995 7
£7,190 £4,521 -£2,669 1338 338 May-10 1.0 1338 4
£7,204 £3,958 -£3,246 1342 295 Aug-10 1.0 1342 5
£7,217 £3,689 -£3,529 1346 274 Nov-10 1.0 1346 5
£7,231 £4,202 -£3,029 1351 311 Feb-11 2.5 3378 11
£7,264 £4,100 -£3,165 1362 301 May-11 1.0 1362 5
£7,278 £3,047 -£4,231 1366 223 Aug-11 1.0 1366 6
£7,292 £2,279 -£5,013 1373 166 Nov-11 1.0 1373 8
£7,305 £3,535 -£3,770 1381 256 Feb-12 3.0 4143 16
£7,347 £2,990 -£4,357 1397 214 May-12 1.0 1397 7
£7,361 £2,302 -£5,059 1404 164 Aug-12 1.0 1404 9
£7,375 £3,248 -£4,127 1412 230 Nov-12 1.0 1412 6
£7,389 £4,255 -£3,134 1418 300 Feb-13 3.5 4964 17
£7,439 £4,505 -£2,933 1435 314 May-13 1.0 1435 5
£7,453 £4,606 -£2,847 1439 320 Aug-13 1.0 1439 4
£7,467 £4,000 -£3,468 1444 277 Nov-13 1.0 1444 5
£7,482 £3,927 -£3,555 1449 271 Feb-14 3.5 5072 19
£7,533 £3,640 -£3,892 1468 248 May-14 1.0 1468 6
£7,547 £3,198 -£4,349 1474 217 Aug-14 1.0 1474 7
£7,562 £3,553 -£4,009 1481 240 Nov-14 1.0 1481 6
£7,577 £3,880 -£3,696 1487 261 Mar-15 3.5 5204 20
£7,629 £3,872 -£3,757 1507 257 May-15 1.0 1507 6
£7,644 £3,781 -£3,863 1513 250 Aug-15 1.0 1513 6
£7,659 £3,903 -£3,756 1519 257 Nov-15 1.0 1519 6
£7,674 £2,576 -£5,098 1524 169 Mar-16 3.5 5336 32
£7,728 £2,536 -£5,191 1556 163 Aug-16 1.0 1556 10
£7,743 £2,943 -£4,800 1566 188 Mar-17 2.0 3131 17
£7,774 £2,975 -£4,800 1582 188 Aug-17 1.0 1582 8
£7,790 £3,261 -£4,529 1591 205 Mar-18 2.0 3181 16
£7,822 £2,763 -£5,059 1606 172 Aug-18 2.5 4015 23
£7,862 £2,607 -£5,255 1630 160 Current
Bye
Ian