They have had a rocky ride, but ultimately investors with nerves of steel who backed the UK's biggest commodity stocks over the last ten years would have been rewarded for their patience.
The winning stock over the ten years to 3 March 2012 was African focused gold mining and exploration company Randgold Resources.
Last week Randgold plunged more than 10% in a single day after a military coup in Mali threatened to impact its gold production. But if you had ridden the dips, a £100 investment in the stock in 2002 would have produced a return of £2,438 by 2012.
Commodities and resources stocks are notoriously volatile, but a look at the best performing stocks over the last decade reveals more than of these firms in the winners’ list.
The best (and worst) performing FTSE shares over ten years
Mining giant BHP Billiton also features in the top ten. A £100 investment in BHP stock would have become £691 by 2012, while Tullow Oil would have returned 1,716%.
Power generation company Aggreko and engineer Weir Group were among the top five FTSE members over the period, while British American Tobacco, a favourite of UK income managers, would also have delivered an impressive return.
In contrast, the UK’s largest banks were the worst place to have parked your money over the last ten years.
An investment of £100 in Royal Bank of Scotland in 2002 would be worth a measly £4 today, while the same amount put into Lloyds shares would be worth just £8 after both banks fell by almost 100% over the period. Barclays fared better, but is still down 30% since 2002.
Retailers and those indirectly exposed to the consumer were also losers, with Sainsbury’s, Kingfisher, and Capital Shopping Centres down between 5% and 16%.
However, with a peer group average return of 200% from the FTSE 100 over the last decade, no-one could argue you should not have been in UK equities, as long as you picked the right ones.
A carefully diversified portfolio of UK blue chips would have given you a good chance of a decent return over a rollercoaster ten years for markets.
Below are the top ten winners and losers from the last decade.
Top ten FTSE 100 stocks
|British American Tobacco||669|
Bottom ten FTSE 100 stocks
|Royal Bank of Scotland||-96|
|Lloyds Banking Group||-92|
|RSA Insurance Group||-28|
|Capital Shopping Centres||-16|
Peer group average 200
Data from 04/03/02 - 03/03/12
DB and a lack of alignment
Encouraging better use of tech
Win one of three £20 Amazon vouchers
Vanguard's multi-asset range