When people think about building wealth through UK shares, they often assume it takes decades of patient saving to get anywhere meaningful.
And honestly? With the average market return of around 8% a year, that’s broadly true. But it’s far from the only way to do it. And some shrewd investors are able to dramatically speed up the wealth-building process, unlocking a £25,988 passive income with just £250 a month.
Here’s how.
The maths behind a £25,988 second income
Let’s assume that UK shares as a whole will continue to generate their historical average of 8% a year. Investing £250 every month into a low-cost index tracker, and reinvesting all dividends for 35 years, would build a portfolio worth around £573,470. And then by simply following the 4% withdrawal rule, that translates into a £22,939 second income stream.
Sadly, not everyone has 35 years to spare before retirement comes knocking. For example, an investor who’s just turned 45 likely only has a 20-year time horizon.
This is where stock-picking can make an enormous difference. By targeting UK shares with the potential to deliver above-average long-term returns, the same amount of capital can lead to significantly superior results. And Computacenter (LSE:CCC) is a perfect example of this in action.
Over the last 20 years, Computacenter shares have delivered a total annualised return of around 18.8%. At that rate, someone drip feeding £250 a month into the company for 20 years would have built a nest egg of around £649,700 today.
That’s enough to generate £25,988 a year in passive income – more than passive index investors could realistically make in almost half the time!
The power of quality compounding
As a quick crash course, Computacenter’s a leading IT infrastructure and services provider, helping large corporations and public sector organisations source, deploy, and manage their technology from something as simple as office laptops all the way to hyperscaler data centres.
Think of it as providing the essential plumbing of the modern digital economy. And right now, business is booming. Its latest trading update was nothing short of extraordinary, with underlying pre-tax profits across the first half of 2026 on track to double year-on-year to £163m. And this comes paired with a massive order backlog that exceeds the £7.1bn reported at the end of 2025.
Subsequently, the firm issued its second guidance upgrade in the last three months, continuing to demonstrate the quality that allowed Computacenter shares to outperform over the last two decades.
Where’s the risk?
Digging deeper, it’s hard not to notice that most of Computacenter’s recent stellar performance stems from hyperscalers in North America investing aggressively into AI infrastructure. And while AI spending is booming right now, it’s foolish to believe that will continue indefinitely.
That means if hyperscale customers slow their ordering cadence, revenue could fall quickly and, with it, the share price.
Nevertheless, the combination of AI tailwinds, an enormous order backlog, and a management team with a decades-long track record of disciplined execution makes this one of the most compelling long-term wealth builders in the FTSE 100.
Cyclicality’s a real risk for investors to carefully consider. But right now, I feel it’s a risk worth considering, especially for long-term investors looking to drip feed capital steadily over time.
Should you invest £5,000 in Computacenter Plc right now?
When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.
And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Computacenter Plc made the list?
Zaven Boyrazian does not hold any positions in the companies mentioned.
