Investing for growth

[countrydj]

I want to invest a sum of money, long term (10 years), for growth.
I have in mind a stock, or stocks, that will pay a dividend that will be automatically reinvested.
At the end of 10 years I want to realise the best possible return.
Can anybody advise me, or point me in the right direction?
Thanjs,

 

[malaguti]

I want to invest a sum of money, long term (10 years), for growth.
I have in mind a stock, or stocks, that will pay a dividend that will be automatically reinvested.
At the end of 10 years I want to realise the best possible return.
Can anybody advise me, or point me in the right direction?
Thanjs,

what kind of return do you have in mind?
It would be foolish to think that any stock or stocks will give you a return in 10 years, anything could happen in that time. However there are 10 year "investment" plans that can guarantee your capital (can't say the same for stocks) and have an average return of 7%. One that comes to mind is the pru fund
the return is not guaranteed, nothing is.

then there are various mixed index funds, but again past performances don't guarantee you will get anything back. scottish widows for example have good historic yields, but doesn't mean it will continue

 

[Jack o'Clubs]

Where to start...

It sounds like you want to make a series of investments now and leave them alone for 10 years? Two reasons why that doesn't really work. First, as Malaguti says, in 10 years anything might happen. Look at 'dead certs' from the recent past like BP or Tescos.

Second is the fact that valuations wax and wane, and it makes sense to buy cheap and sell dear. You might take a long term view on a stock now, that you think is undervalued, this time next year the market may agree with you and the stock is then overvalued. Why would you then continue to own it?

If you really want to have that little to do with your investments, I'd probably buy a dividend focused fund. It may or may not outperform but at least you know you have a team who do nothing other than looking at these things for you.

Finally, if you're really wanting to take a 10 year view, you have a lot of leeway on initial timing. My feeling is that equity markets are pretty toppy right now, I think you get a decent correction in the next 6 months which would give you a much better entry point.

 

[Charles Bronson]

I wish it was that easy.