Should You Invest In Britain's 10 Biggest Companies?
ฝัง
- เผยแพร่เมื่อ 9 มิ.ย. 2024
- In this video I discuss the 10 largest listed companies in the UK and compare their share price and dividend performance over the last 5 years to a range of different UK indices such as the FTSE 100, FTSE 250 and FTSE All Share. The companies mentioned in this video are RELX, British American Tobacco, GSK, Rio Tinto, Diageo, BP, Unilever, HSBC, AstraZeneca and Shell.
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Disclaimer
This video should not be construed as investment advice. Investments can fall and rise. Capital at risk.
Fantastic video I really like they way you made this and broke it down. Thanks
Thanks, I really appreciate it and I’m glad it was useful
great ADVICE.
Thank You
Great video as always, If I had to go to an ETF I'd feel much more comfortable in the S&P than FTSE but there are opportunities swing trading within the UK companies. I do buy some companies for long term holds and dividend returns but also read a lot of company reports and announcements for shorter term (weeks/months) trades, often pick up little dividends in the process too which all help. November is actually looking like my biggest dividend month thanks to a few house builders, MNG and BAT
Thanks so much. Interesting times ahead. Most of my new money goes into the S&P500 these days but with several UK companies falling so much recently e.g. Croda and Diageo it is difficult to resist.
Im slowly pivoting more into uk stocks, another great informative video!
Thanks my friend
Nice video 😊just 8 out 10 😊 has been great buying time. Portfolio is down but still growing strong as time goes on 😊
Thanks Paul, all the best
Great video especially the dividend calendar. Ive been moving my portfolio into dividend payers although keep away from directly holding Diageo.
Thanks so much for watching
Why are you staying away from diageo?
Very interesting have to do my research on relx thanks again 👍
Thanks for watching. All the best
Good video please keep them coming
Thanks, I’ll definitely try
Thanks, very useful information 🙏
You are welcome. Glad you found the video useful
Nice going, if £10k were invested 5 years ago in VWRL etf it would be worth
.£14,394
That’s a great ETF and next on my shopping list. I already invest quite heavily in IUSA and VHYL
I’ve started to put my money into the global index fund, s&p 500 and vanguards high dividend etf
Great video, thanks. S&P500 is up 61% in the last 5 years which blows all the UK indices out of the water even with dividends. I do enjoy being able to see the dividends grow though.
Thanks so much for watching. Yeah the S&P500 has done very well.
Great video mate once again,what are your thoughts of topping up on Diageo with the drop a few days sgo?
Thanks Gurdeep. I bought more on Friday when I saw the drop and if it falls again on Monday I’ll buy more
Great video as always. Really like the insights you provide. What's your views on the oil companies shell and BP- do you think you will add to your holdings over the next year with everyone talking about the transition to renewables over the next decade etc?
Thanks. I’m quite heavy in oil shares at the moment so periodically sell slices of them to rebalance the portfolio.
I was thinking of doing the same over the next year.@@TheCompoundingInvestor
Good video / information.
As the top 10 changes over time, this would not be the list a "Top 10" investor would have picked 5 years ago, i.e they would not have picked RELX which has big impact on the 5 year values.
As a long term investor, it would be interest to see this video repeated on same the same date each year to see how the top 10 changes and how investing on the Top 10 really performs.
I found it very difficult to find this info for exact years in the past e.g. 2018. I agree there are probably a couple of differences. BHP delisted from the U.K. market and is on the Australian market. Reckitt Benckiser may have been in there at some point but apart from that the other 8 would probably have been there. I'll make it a point to record each year the highest yields in the FTSE 100 and also the highest market caps. Thanks so much for suggesting this.
These videos are fantastic and thanks for making them.
My question for you, how do you decide how much to put between the 10 companies. For example. if there are 10 and you have £100k, I presume you don't put £10k in each.
Spreading it around would carry less risk than choosing any particular company and when one company does particularly well then some form of rebalancing once a year or so is a strategy some use. I’ve sold quite a lot of Shell and BP since the end of the pandemic as they were starting to dominate my portfolio however just having 10 companies is not ideal. I’ve now got around 25 individual companies plus ETFs.
Great contribution as always! Question: when GSK spun off Haleon what happened to your holding? Did they compensate with Haleon shares for the value lost by GSK shares? They been talking about spinning off Unilever into two different companies as well.... I'm waiting for your december portfolio update! I bet you are buying Diageo dip! I am focusing more into USA growing stocks at the moment, hoping to make some profit to reinvest into these 10 UK dividend companies
Thanks. Yes we were compensated with shares from Haleon to the same amount. Regarding Diageo yes I was filling my boots on Friday the moment I saw the shares fall. I agree with USA stocks, most of my new money tends to go into the S&P500 ETF these days but if I see big price falls in UK large caps I'll definitely try to take advantage of it.
@@TheCompoundingInvestorit's still down and I'm tempted to add to my holding
Am I the only one that always look forward to ur video... Thank you for all the amazing nuggets you put out
That’s very kind. Thanks so much
Great video as always. Certainly a much less exciting top 10 than the US. Will ne interesting to see how much longer BAT keeps its spot. LSEG could be a contender 🤔
Correct Tom, my mentor in 2007 told me Nasdaq NASDAQ Nasdaq (and India) 10k in a qqq Nasdaq etf would be worth £22500 after 5 years if my instant maths is correct, currently for sure the UK heavy dividend stocks are tempting though and I am picking some out for my all star best in class watchlist, past performance is no guarantee of course
Thanks Tom. Still around 13 Billion pounds market cap between BAT and LSEG currently but the gap is closing for sure. Recently bought into LSEG
@kippsguitar6539 Thanks, Kipps. NASDAQ is a bumpy ride but certainly has offered great returns. UK dividend stocks are tempting as you say, especially if you buy at the right price.
@TheCompoundingInvestor Ah still a way to go. I really like the look of LSEG though.
@@TomsPersonalFinance Yeah, LSEG and RELX are my most recent additions. I guess in some ways they are similar types of companies e.g. information technology. The dividend growth and share price rises over recent years look very good. Having said this I thought exactly the same about Croda a couple years ago, so anything can happen!
I own 5 out of the 10 with all apart from relex on my watch list. Relex will now be added
i only invest in commodities and i dont save paper currency in a bank i have gold coins.
Lovely way to diversify. Many go against physical metals but like you, it plays an important part in my investment
Thanks for another great video! What software do you to edit your videos? The transition are just effortless but don’t look to complicated. Cheers :)
It’s definitely not complicated. I use an iPad and the free iMovie software it comes with. Also use a small plug in mic to cut down on background noise. The Mic is made by Rode and cost around £50 and plugs into the charging port. I switched to an iPad around August. All my videos before then were done on an old iPhone 10 with the same plug in mic and same iMovie app. No memory left on my iPhone so switched to an iPad instead. Slides are created using Canva which is totally free and you can access it using any PC. Bar charts are created using the Keynote app which comes as free with all apple iPhones / IPads
Thats great, thanks for the reply and insight! Keep up the good work, as a fellow UK dividend investor (no where near your level) its great to see your updates. @@TheCompoundingInvestor
What are your thoughts on bdc’s and mortgage REITs? They seem to have the highest yields
Not a sector I have much knowledge in unfortunately. Perhaps others on here will make some comments
I feel a significant number of these UK companies are yield traps British American Tobacco in particular.
Not including Dividends the FTSE 100 is up approximately 5% over 5 years for that holding period, you're not even beating inflation.
Dividends change this picture, but, not by a lot.
You'd be far better served by handpicking the companies you invest in from the Index or if you really want a hands-off approach, invest in the S&P 500 or for Diversity and all world index.
I’m a big fan of the S&P500 and most of my new money over the last couple of years has gone into this ETF.
I hold everything except relx in my ISA
I have been reading some interesting Articles on different Companies and the inversion when a Recession hits. Berkshire Hathaway sold a few holdings very recently.
Diageo, Croda, etc have some signs of the impact around the world. Would you think to have some Defensive stocks BATS is one of course.
Yeah I noticed Buffett seems to be building up a cash reserve. Regarding defensive stocks I always thought Diageo was one of them. Very surprised at the fall recently. I did manage to add more of them and will continue to if it falls further
Good evening mate so I’ve been thinking of the past week about my portfolio and I don’t really have anyone to talk about it to because they’re not interested. I was wondering if you would give me your opinion on :
Do I invest weekly by buying 1 share of each stock. I added up my portfolio and it’s around £705 for my 22 stocks I own ( that’s the total amount if I had just 1 stock in my 22 owned, I have almost 2k invested)
Or should I invest £20 a week in all stocks? Yes some may give me more shares, for example, Lloyds bank have a share price of 0.43p so £20 would give me 46.3 shares but others may give me 1 or less than 1 share.
So what would your opinion be on that? As I’m trying to improve my profile and try attack it a little more aggressively next year ( but not too aggressively)
What I do at the moment is put a regular amount of money into the stock market each week. I never really worry about the number of shares I’m buying in each company. If I see a bargain e.g. Diageo or Unilever at the moment I’ll put a set amount of money into one of those. If I can’t see a bargain I’ll buy an ETF instead with the same amount of money.
@@TheCompoundingInvestor yeah I understand mate, what I’m trying to do is look at averaging my costs down if possible, I know in the new year I want to put an average of £5 a day in a solid ETF so then I can buy the highs and lows
I think I have 9 of the list you’ve shown me
Have you been buying any Diageo shares during the recent drop in share price?
Buying like a boss on Friday 😎
I've invested in 5 of them. Sold some BAT shares tho
Been investing only since 2020, but I'm keen to use growth stock like Palantir and others and to hopefully jump start my future which is to sell and transfer into Dividend stocks. I'm not someone who wants to bet on big swings, well not for long-term so hopefully my plan succeeds.
That sounds like a plan. All the best on your journey
Great choice. I have been investing in PLTR too, besides NVDA.
@@seawavechau I got a nice bump from NVDA from the last earnings call sold all my holding and dumped it into PLTR.
Evening mate did you hear about the new rules on fractional shares? The government said that we’re allowed to hold them in isa but only certain ones so I guess we’ll have to see what our brokers tell us
Yeah I did hear about that in the Autumn statement. Good news for a lot of investors. My Barclays platform however has never allowed me to buy fractional shares in the first place.
took philip morris international instead of BATS / IMB - the debt is conerning
Can you make a video on how you would start investing now from scratch and the process behind the decision making please
As a starting point you might find the following video useful to what I am trying to achieve. I show also how to use an app to buy a share.
th-cam.com/video/rO9pSHiT4P0/w-d-xo.html
Every time the ftse gains momentum, news about inflation and interest rates knock it down again. But it surely can’t last forever. I’m going to keep buying up cheap stocks over the next couple of years and hopefully reap the benefits from 2025 (when inflation is supposed to return to 2%).
I'd like to buy an ETF that puts 1% in each FTSE company rather than market capitalization. Not sure it exists though.
I’ve not seen one either
I've got a question. Did you happen to check whether all these 10 companies were the top 10 companies five years ago?
For US it seems to be wise just to invest in the top 1 company to outperform US S&P 500 index in the last 30 years.
Do you know where I could find some info about the company with the biggest market cap from the British stock exchange in the last, let's say, 20-30 years?
What's your opinion in investing in some sector ETF's (European, US or World)? I guess you, guys, have access to them, like I do in the Netherlands.
BHP delisted from the U.K. market and is on the Australian market. Reckitt Benckiser may have been in there at some point but apart from that the other 8 would have been there. Very difficult to find this info for exact years in the past. As regards ETFs I think they are a great way to invest. They were not mainstream when I started but they are where most of my new money goes these days e.g. FTSE 100, S&P500 and VHYL (high dividend world ETF). My favourite ETF is the S&P500
I'm adding more money into croda and reckit this month as there both down on my average sp .😊 I'm also thinking of starting a position in merchants investment trust.😊
There are about 3 different riotinto stocks available, what's the difference?
It’s quoted on different markets e.g. Australia, London etc. I make sure I choose the London version as I’m in the U.K. so I look for Rio.L
@@TheCompoundingInvestor So exactly the same stock just on different exchanges, thanks, I was worried it might be a subsidiary or something.
Should be around £52 a share or 5200 pence for the U.K. listed one
What were the 10 biggest from 5 years ago and where are they now in relation to then?
Difficult to find that info for the exact year. 8 of them were probably the same. BHP was one but has now but is quoted on the Australian Index. It’s done really well up 46% Reckitt Benkiser May have crept into the top 10 then but that is down 16% since then
@TheCompoundingInvestor you see what I am saying though? Backing the top 10 companies in any index (maybe any index?) is likely to be a successful strategy. Almost like creating your own mini index I guess.
The key is maybe watching that top 10 though and dropping companies falling out of it to switch to the new company I guess
UK accompanies really have lagged the US market
Please can you do a video on top 10 US dividend stocks 🙏. Thank you
Great video, almost makes me want to sell my FTSE100 ETF and replace with VWRL
Thanks. I am thinking of adding VWRL in the not too distant future. I already have VHYL and IUSA
@@TheCompoundingInvestor
I will keep the FTSE100 etf and consider BP, GSK and Rio Tinto, I own Glencore already so would only swap perhaps. what are your thoughts on the Diageo massive drop this recent week?
My thoughts on Diageo? The moment I saw the drop on Friday I was in there buying like a boss :)
@@TheCompoundingInvestor haha, nice! I Have some sorting to do in my portfolio. For a january dividend I currently have ABF, BNZL and NG, but interested in swapping one for GSK as I have a lot of defensive but would like healthcare and with the new vaccine from GSK I see value.
@@TheCompoundingInvestor also I notice you tend to stay away from US individual stocks. But I have recently invested in Visa as they have grown in value and dividend by insane numbers. I believe it has so much potential still.
HMRC have set out its interpretation that only whole shares (rather than fractions of shares) can be held in an ISA. HMRC's Tax-free savings newsletter 9 (October 2023) confirms HMRC's view that a fraction of a share is not a share, and therefore cannot be held in an ISA. :/ what’s does mean ?
I’m hoping the chancellor will clarify this in the Autumn statement on 22nd Nov.
@@TheCompoundingInvestor so what’s happen if they clarify like only full shares u can keep on isa ? What we have to do that point ? I have only fractional shares on my Isa ….
My main portfolio is with Barclays and they don’t allow me to buy fractional shares so unfortunately I don’t know the answer I’m afraid.
Thank u for your help :) I have isa opened in Interactive Broker :)
0.5% stamp duty really makes it too expensive when I pay just 0.15% for US companies
What 😂
@@MATIvmr don't buy shit UK companies when it's 3x more expensive in terms of fees
@@autistic-man- 😂
@@autistic-man- No stamp duty to pay on a FTSE 100 ETF.
How can you claim BAT/BTI has made a loss including dividends in the last 5 years? The american version is standing at around $30, and in the last 5 years you would have gotten around $14 per share in dividends in total.
This puzzled me when I looked at the chart after reading your comment. My graph clearly shows a 23.7% fall over the last 5 years. The graph was taken on the 3rd November and today's graph shows only an 8% fall over the last 5 years. I think what might explain this is between the dates of 3rd of November and 12th November 5 years ago the price of BATs must have changed sharply. Looking at the historical graph this seems to be the case.
I had to check this aswell and it seems you are right. It dropped alot during a very short period of time just a little over 5 years ago. :)@@TheCompoundingInvestor
@atlasnetwork7855 On the 3rd Nov when I copied the chart it showed a 23% fall over 5 years. On 12 Nov today the 5 year chart shows only a 7% fall so obviously something dramatic must have happened 5 years ago between those dates in 2018.
Out of interest, how do you create the voice on your videos? Or if that is your real voice, what a brilliant speaking voice
Thanks, that’s very kind. It’s my real voice and being in the education sector i’m very used to speaking to an audience. For recording I use a tiny plug in mic (Rode) which plugs into my iPad to cut out background noise, think it cost around £50 and I do all my editing on the iPad now using the free iMovie app. Up until a few months ago I used an iPhone 10 but that was starting to show its age and running out of memory was the worst issue I had. Once the recording is done it takes a lot of time editing and matching up the voice to the slides and cutting out unwanted parts
@@TheCompoundingInvestor wow that’s amazing. If you have any tips for speaking so clearly and engagingly then do share, maybe a future video idea for you haha
@thegeordiesaver I would say one of the most important things is enthusiasm for what you are saying and generating excitement in what you try and say. If the audience senses that you love the subject you are talking about then that helps tremendously I’ve found in my everyday work. Humour is also another key ingredient which can be thrown in from time to time.
Would never touch an ETF, bit boring but stick a grand in a 5 year fixed rate deal or buy Tesla at $200 and hold for 5 year but leave that lot alone.
I think with what the governments doing BAT is dying as a UK sales corp, theyll have to push sales in other countries such as india that have high tobacco use. the others all seem fine but it looks like the 250 is dropping massively due to the recession and this is leaking into the 100 aswell, i fell like your only safe if you stay within the top 50 or even top 25 with how quickly companies are falling.
Some great points mentioned there. It’s a difficult time to be a U.K. investor for sure.
BAT has a small footprint in the uk. I don't think the uk will particularly affect their top line. They are concentrating more on India and other emerging markets. Plus, tobacco will eventually be replaced with next generation products.
I take it you didn’t make this video on Friday. 95 shares of Diageo’s dip 🤤
takes about a week to get these videos done in my spare time. I did snap up a few more Diageo shares in Friday however.
Quite a lot of companies giving future profit warnings, the market over-reacts and there’s a decent rally in the following weeks. As happened to NATW last week and now Diageo. Good to have some spare cash ready to buy these easy pickings.
There's always one! You sound like that Harry Enfield character
Yeah the Diageo fall came out of the blue on Friday. Bought a few more when that happened as I'm in it for the long term
@@quokkapirquish6825Very true regarding NatWest, Quokka. The market over reacts all the time in the FTSE 100.
I think you would do far far better investing in the top 10 american companies 😉
Most new money goes into the S&P500 these days
@@TheCompoundingInvestor eqqq is worth adding imo. 👍 it will be a decade of technology.
I agree that
It's crazy to think that Bitcoin has triple the market cap of the biggest UK company and biggest worldwide oil company.
Hello! Another amazinggggg video! I’ve recently started investing, and would LOVE a little advice, would I be able to ask you a couple of quick questions on your opinions? Could I contact you somehow or would you rather me ask on comments? Thanks so much 🙏🏻
Thanks so much. I will try to give replies to comments but I’m not allowed to give any sort of financial advice of course as everyone’s situation is different and tolerance to risk etc and financial priorities, the list is endless. All I can do is show what I’m doing or would do in my own situation.
@@TheCompoundingInvestor thank you! I’ll write my questions here and hope you can give me your opinion!!
What’s the different between the S&P500 etfs eg vanguard and “ishares” etc and does it make any difference which one investing in?
Which, in your opinion, is the best “world index etf”? Eg “developed world” or “emerging markets” or “vanguard all world”.
Does it all do around the same sort of thing basically would you say? Thanks ☺️🙏🏻
Not much difference between Vanguard and IShares S&P500 ETF. The fees are both the same at 0.07% I believe. Regarding All World ETFs they will give you exposure to mainly well developed countries with some emerging markets all in one package. Some investors feel that they want more exposure to emerging markets and less exposure to developed so may buy those two instead in differing proportions. I have no idea which would do better and I’m actually considering just buying VWRL (All World) at some point in the future to add to my portfolio