The New £1 Coin

With the excitement surrounding the issue of the new one pound coin, I wondered how much I would have today, if I had invested 10,000 of them into the FTSE All Share index when the pound coin was first launched.

The one pound was introduced on 23 April 1983, when Lady Thatcher was Prime Minister, seat belts became mandatory for drivers and front seat passengers and the first episode of Blackadder was broadcast on BBC One.

The FTSE All Share has returned a whopping 3000 per cent over this period, averaging 11 per cent a year, now considering this period covered the ‘dot-com bubble’ in 2000 and the Financial Crisis in 2007/8, it’s been a roller coaster of a ride for most investors, but a return you would ultimately be pleased with.

Not all years have been great during this period, although the average return was 11 per cent, the worst one year return was almost minus 33 percent in February 2009 and the best was 47 percent in February 2010.

After all the ups and downs in the market, how much would my £10,000 would be worth today?  £340,000 a very nice return for those who remained invested.

What investor lessons can we take away from this?  Markets rise and markets fall, they repeat this again and again.  Investors are rewarded for their participation in the markets and the wise investor buckles up and sits tight.