RE: FFS4 Jul 2024 12:58
Sir Carrington, I concur with what you said and may I add that it is a big thanks to the former Iron Lady of 1986 that RR was privatised and paved the way for our investments today. The honourable Lady Margaret Thatcher, who was the force behind the large-scale privatisation of state-owned assets, once said: "Privatisation shrinks the power of the state and free enterprise enlarges the power of the people." Probably the most successful British privatisations of all time
A little history shows anyone who bought shares in the initial public offering of Rolls-Royce in 1986 would have had to have waited a long time to reap the rewards.
It floated at 170p per share. In August 1995, at the start of FE data, the share price of Rolls Royce sat at 180p, a mere 5.9 per cent higher than it had been nearly a decade before.
By the turn of the century, the firm was under threat of being booted out of the FTSE 100 after it reported a slump in profits for the first half of the year.
In mid-2000, the share price plummeted more than 22 per cent to 169.5p, just below its initial float price. The share price fell even further in March of 2003, down to just 64.25p per share.
However, investors who stuck with the aerospace engineering firm would have seen their returns skyrocket from then on.
Since its lowest point on 27 March 2003, Rolls-Royce has rallied by nearly 2,000 percentage points, picking up 1,957.25 per cent, according to FE Analytics.
The FTSE 100 index made just 162.53 per cent over this period.
Investors who held the stock from its launch in 1986 through the tumultuous 1990s and early 2000s would have seen their initial investment grow from 170p per share to 1,139p per share.
This means that an initial investment of £1,000 in Rolls-Royce would be worth roughly £6,700 today. Rolls-Royce has a potential 2 per cent yield, which is expected to increase to 2.3 per cent next year.
The stock is a top-10 holding in 31 funds in the IMA universe, including the BlackRock UK and UK Absolute Alpha funds and Newton UK Equity.
Enjoy the voyage from 4's to level 5's (moderate to rough)
GLA DYOR IMOO