Compound Income
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The Power of Compounding (updated)

3/12/2015

4 Comments

 
Can be demonstrated by listening to Lord Lee. He is the famous FT columnist who was apparently one of the first to become an ISA Millionaire in 2003. You can listen to him give an update in this FT Money Show Podcast in which he reveals that his portfolio is now apparently worth £4.5m.

Interestingly £1m to £4.5m over 12 years from 2003 represents a reasonable but achievable 13.4% per annum by my reckoning, so maybe this can be an encouragement to everyone to make the most of their ISA allowances and let compounding work its magic.

Apparently there was also an article based on this in this weekends FT, although I didn't see that and can't find it on line so if any reader has a link or knows where to find it perhaps they could be so kind as to add it in the comments, cheers and don't forget to Compound that income.

Update
Well the reason I couldn't find the article is because it was in today's FT not last weekends.
Having read it, it seems he did put  a bit more capital in after 2003 which would make the compound return a little lower than the one I calculated above. It also included details of his current holdings and an extract from his book, How to make a million slowly, of his 12 Golden Rules.

So it is quite an interesting article and you should be able to read it on line here, although you may have to sign up as a user to access a limited number of stories for free each month, if you are not already a subscriber.


4 Comments
Michael
4/12/2015 09:54:30 pm

From listening to the interview I think the article in "this weekend's FT" actually means tomorrow's (i.e. 5th Dec) edition, although the interview wasn't clear about this. Certainly I'll be buying the FT tomorrow to see if the article's in there.

Inspirational stuff and hat off to John Lee for 'going public' as to the level of wealth he's amassed.

Reply
Jamie link
5/12/2015 11:36:06 am

Your are right it is in today's FT - no wonder I couldn't find it. So if anyone want to see it you need to get hold of a copy.

Reply
weenie link
5/12/2015 02:55:41 pm

An excellent read, in particular his 12 golden rules.Love that he doesn't own a smartphone!

Reply
Jamie link
6/12/2015 06:48:02 am

Hi weenie - I guess the no smart phone bit is an age thing as he admitted he didn't get technology. Also quite refreshing that he gets end of day prices e-mailed through.

Reply



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