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Isa-Millionaires, Hubris In 2007

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http://www.telegraph.co.uk/finance/personalfinance/investing/2804090/Tax-free-account-put-us-into-the-millionaire-class.html

This was published in Feb 2007, a few months before Northen Rock Collapsed in September 2007

Winners

Some of the shares that made John and Judith Housden Isa and Pep millionaires

HSBC

Lloyds TSB

P&O

British Airports Authority

DTZ

Halifax

Alliance & Leicester

Northern Rock

Woolwich

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he's an actuary - if he 'only' made a million in 20 years (whilst also being a lucky beneficiary of demutualisations ) that is pretty average for the market, could even be underperformance

Edited by Si1

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he's an actuary - if he 'only' made a million in 20 years (whilst also being a lucky beneficiary of demutualisations ) that is pretty average for the market, could even be underperformance

He and the misses will have invested over 250k so once you subtract that out and look at the rates of return he would/should have done better with a decent fund manager

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I await the next Telegraph article with an ISA-millionaire who has made their riches from mining, energy, Cloud IT, and agriculture related shares.

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I await the next Telegraph article with an ISA-millionaire who has made their riches from mining, energy, Cloud IT, and agriculture related shares.

or Chinese property companies

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http://www.telegraph.co.uk/finance/personalfinance/investing/2804090/Tax-free-account-put-us-into-the-millionaire-class.html

This was published in Feb 2007, a few months before Northen Rock Collapsed in September 2007

Winners

He was lucky.

the three Peps that I invesrted in in the late 90s are now all worth 12-13K. That a 40% return over 12-15 years, so about 3% per year.

Harly worth the aggro!

tim

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There's a lot of rumours about "ISA millionaires" and they've been bigged up by Killik in particular with the claim that someone out there has over £10m in an ISA.

http://www.ft.com/cms/s/2/836a4c76-d309-11df-9ae9-00144feabdc0.html#axzz1LI5FawG8

But recently there was an analysis (I think it was in Investor's Chronicle but I'm not positive) that poured a bit of cold water on these claims. Basically to be over £1m you had to have put the maximum annual amount into PEP's since the mid 1980's when they were introduced, transferred all this into ISA's, re-invested all dividends, and achieved a consistent return ahead of the FTSE. Not impossible by any means, but hardly common. However, to have achieved over £1m just in the lifetime of ISA's you'd have had to acvhieved all the above PLUS delivered gains well in excess of Warren Buffet's long run 20% average. Given that ISA's exclude AIM shares, it makes this kind of growth even more difficult.

To put it into context, I've been in ISA's since the beginning, including transferring in some PEP money, always taking 100% of the share allowance and always re-investing all dividends. Over that time I've had a couple of strokes of great fortune, including going 50% liquid before the 2008 crash (however I was too slow going back in and wasn't fully re-invested until late 2009) and having Chesnara as my largest single holding over the past three years. But despite getting far more right than wrong, I'm no where near the £1m level! My guess is that you could count ISA millionaires on your fingers and toes, and I'm sceptical that there's anyone out there over £5m.

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Given that ISA's exclude AIM shares, it makes this kind of growth even more difficult.

Not entirely true, there are a small number that are ISA-ble. But yes, agree with the general gist of your post.

That being said, having access to easy ETFs within and ISA and decent trading costs does make it easier to achieve. I'm roughly 50% up over 18 months, so not impossible to get x10 over 10 years I would've thought.

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I await the next Telegraph article with an ISA-millionaire who has made their riches from mining, energy, Cloud IT, and agriculture related shares.

Mining, energy, and agriculture are all 'real economy' areas, and have been for thousands of years. Ignore them at your peril. Many finance/banks and IT related stocks are classic fluff by comparison.

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I think it is possible to make £50k-£100K in shorter timeframes.

QED rose from 7p to 120p in one year.

AGQ from 2p to 40p again in short time.

A few other dual listed ISAble mining/energy companies, essentially penny stocks have briefy netted 5x. But this is a very hard thing to time. Who'd be brave enough to sink £10k into one stock during the 2008 crash - we believed the world was about to end!

£1m I agree very few numbers, you're better of buying a lottery ticket each week.

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There's a lot of rumours about "ISA millionaires" and they've been bigged up by Killik in particular with the claim that someone out there has over £10m in an ISA.

http://www.ft.com/cms/s/2/836a4c76-d309-11df-9ae9-00144feabdc0.html#axzz1LI5FawG8

But recently there was an analysis (I think it was in Investor's Chronicle but I'm not positive) that poured a bit of cold water on these claims. Basically to be over £1m you had to have put the maximum annual amount into PEP's since the mid 1980's when they were introduced, transferred all this into ISA's, re-invested all dividends, and achieved a consistent return ahead of the FTSE. Not impossible by any means, but hardly common. However, to have achieved over £1m just in the lifetime of ISA's you'd have had to acvhieved all the above PLUS delivered gains well in excess of Warren Buffet's long run 20% average. Given that ISA's exclude AIM shares, it makes this kind of growth even more difficult.

To put it into context, I've been in ISA's since the beginning, including transferring in some PEP money, always taking 100% of the share allowance and always re-investing all dividends. Over that time I've had a couple of strokes of great fortune, including going 50% liquid before the 2008 crash (however I was too slow going back in and wasn't fully re-invested until late 2009) and having Chesnara as my largest single holding over the past three years. But despite getting far more right than wrong, I'm no where near the £1m level! My guess is that you could count ISA millionaires on your fingers and toes, and I'm sceptical that there's anyone out there over £5m.

Or if they had took all their money to buy something like Next, Vodafone, ARM at the right time..

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I have made a post on the pinned threads here: http://www.housepricecrash.co.uk/forum/index.php?showtopic=117772&view=findpost&p=2972767 go back up to post #700

I do hope there will be one more large correction in the stock market. Perhaps a sell in May and go away will occur this year.

Ask yourselves what are you doing readying yourself to pounce?

Edited by Money Spinner

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  • 285 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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