Below is a list of the Financial Times Stock Exchange 100 (FTSE 100) watch list. These lists contain companies that are within 10% of the one year low based what we believe to be reliable sources. To get a better understanding of the potential that may be available by investing in FTSE 100 stocks, we recommend reading the book Free Capital by Guy Thomas. According to the author:
“This book profiles 12 private investors. Each of them has accumulated £1m or more – in most cases considerably more – mainly from stock market investment. Six are “ISA millionaires” who have £1m or more in a tax-free Investment Savings Account (ISA), a result which is arithmetically impossible without exceptional investment returns.
“Given the inability to borrow, and low contribution limits in PEPs and ISAs – £10,680 per annum in 2011-12, and for many years £7,000 per annum or less – these results are arithmetically impossible without exceptional investment returns. Specifically, even if the maximum permissible contribution had been made every year since the inception of PEPs and ISAs in 1987, the total contributions up to and including the tax year 2003-04 would have been £126,200. Accumulation of these contributions to over £1m by the end of 2003 implies a compound growth rate of at least 23% per annum.”