2 FTSE 100 and FTSE 250 stocks to consider for generational wealth

Invest in FTSE100 And FTSE250 actions can sometimes be an uncomfortable experience. As we have seen more recently during the Covid-19 crisis, events can appear out of the blue and cause stock prices to suddenly plummet.

However, history shows us that there are still significant benefits to buying UK stocks. Over the long term, a diversified portfolio of quality stocks can produce true generational wealth.

A nest egg of £1.6 million

Over the past few decades, the FTSE 100 index has generated a solid average annual return of 8%. The FTSE 250 has done even better, delivering an annual return of 11%!

If this performance continues, a monthly investment of £300 would ultimately net a long-term investor £1,630,888 after 40 years. That’s a decent amount to possibly pass down to an investor’s children and grandchildren, I’m sure readers will agree.

But which FTSE stocks could help stock pickers make this kind of fortune? Here are two which, in my opinion, deserve serious consideration.

Games workshop

Since 2004, the fantasy gaming giant Games workshop‘s (LSE:GAW) saw its share price rise almost 2,500% to current levels. I expect it to continue to rise strongly, but I admit it faces competitive pressures from cheaper rivals.

Games Workshop is the gold standard in the rapidly growing field of tabletop gaming. It is Warhammer 40,000 The system in particular is revered by loyal enthusiasts around the world. And recent, notable releases (like its latest version of 40k) sold out within hours of their release.

This underscores how demand for its niche products remains strong, even in tough times for consumers. Last week, it predicted core revenue and profits of “no less than“£490 million and £200 million respectively for the financial year ending June. This is an increase on £445m and £171m the previous year.

An upcoming media deal with the streaming giant Amazon could also help him take sales to the next level. In addition to generating significant royalty revenue, television and film content could amplify sales of its figurines and gaming systems.

The story continues

London Stock Exchange Group

London Stock Exchange Group (LSE:LSEG) has also seen significant share price gains over the past few decades. Its shares are 2,300% more expensive than 20 years ago.

As readers may have noticed, the London Stock Exchange has been in the spotlight for all the wrong reasons lately. Companies looking to go public have been snubbing the UK to list their shares elsewhere. In addition, delistings are increasing as small companies look for other ways to raise funds.

These are important issues. Still, I think shares on the London Stock Exchange remain attractive today. One of the main reasons is its role as a major data provider to banks and other financial companies.

Its Data and Analytics division now accounts for 48% of group revenue. And revenues rose another 4% at constant exchange rates in the March quarter.

And if his partnership with Microsoft If the results of the deal are to be believed, data revenue could move to the next level, especially as the deal aims to integrate the use of artificial intelligence (AI) in future products.

The post 2 FTSE 100 and FTSE 250 Stocks to Consider for Generational Wealth appeared first on The Motley Fool UK.

Further reading

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Royston Wild holds positions within Games Workshop Group Plc. The Motley Fool UK recommended Amazon, Games Workshop Group Plc and Microsoft. The opinions expressed about companies mentioned in this article are those of the author and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. At The Motley Fool, we believe that considering a broad range of information makes us better investors.

Motley Fool UK 2024