On 27 February, the FTSE 100 hit an all-time high of just over 10,910. Next day, Donald Trump launched his war on Iran. Global stock markets plunged and so did the UK blue-chip index. As the soaring oil price threatened another inflationary shock, investors braced themselves for disaster. It didn’t happen. The blue-chip index has held steady and it’s done very nicely over the last year.
At The Twelfth Magpie, we urge investors to look past the short-term ups and downs of stock market investing. Equities can be highly volatile in the short run, but that’s a small price to pay for the superior long-term outperformance.
See how stock markets work your money
Over the last decade, the average Stocks and Shares ISA has grown at an average compound rate of 9.64% a year, with dividends reinvested. The average Cash ISA returned just 1.21% a year, according to figures from advice site Unbiased.
Here’s what that means in practice, based on an initial investment of £20,000.
| Term | Cash ISA | Stocks and Shares ISA |
| 10 years | £ 29,605 | £ 49,565 |
| 20 years | £ 43,823 | £ 122,832 |
| 30 years | £ 64,868 | £ 304,406 |
At that rate, the average Cash ISA would turn £20k into £64,868 over 30 years. Equity investors would get £304,406, almost five times as much. Of course, nothing is guaranteed.
Many investors have focused on the US stock market lately, which has flown on the back of those big mega-caps. Yet, the FTSE 100 has done well too. Over the last 12 months, it’s climbed 19.1%. It’s also given investors bags of dividends, with a trailing yield of around 3.1%. This lifts the total 12-month return to 22.2%.
That would have turned a £20,000 investment one year ago in July 2025 into a pretty handy £24,440. But that’s just one year. The real rewards of equity investing roll up over decades, thanks to the magical compounding effect of equities.
Check out this stellar blue chip!
At The Twelfth Magpie, we prefer to buy individual UK stocks rather than passively track the FTSE. It’s a bit riskier, but potentially a lot more rewarding over time. Sometimes stocks go gangbusters. That’s what’s just happened with infrastructure services provider Computacenter (LSE: CCC). Its the best performing FTSE 100 stock of all over the last 12 months, up a quite stunning 114%.
Computacenter helps large organisations manage their hardware, software, and cloud networks, and it’s posted a string of exciting trading updates. Profits are forecast to double this year thanks to accelerating AI infrastructure and data centre investments, particularly from the US. The company was rewarded with promotion to the FTSE 100 in June.
The shares and order book are both booming but as ever there are risks. Computacenter works to tight margins, and any slowdown in economic sentiment could hit revenues and profits. And if AI proves to be a bubble, it could take a big hit.
The shares are a little pricey after such a strong run, with a price-to-earnings ratio of 27. But not that expensive, given the opportunity. I think it’s worth it considering for investors who understand the risks, as part of a balanced portfolio of FTSE 100 and FTSE 250 stocks aimed at building wealth for the long term.
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?
Harvey Jones does not hold any positions in the companies mentioned.
