The UK’s most active investors — those aged between 25 and 34 — save £529 on average per month. That’s according to investments provider Shepherds Friendly. With this sort of sum, I think it’s realistic to target a million-pound portfolio with FTSE 100 shares.
Since 2015, the Footsie‘s delivered an average annual return of 7%. And, in recent days, it’s touched new record highs. But I believe buying individual blue-chip stocks is the most effective way to build long-term wealth.
There’s no such thing as a ‘sure thing’ in investing. However, this FTSE 100 growth share has proved to be a terrific ‘cheat code’ for long-term investors looking to supercharge their portfolios. And I think it will remain an exceptional wealth creator.
If its performance since 2015 continues, a £529 monthly investment each month will create a portfolio worth £1,022,797 just over 10 years from now.
I wouldn’t just hold one share in my portfolio, given the high risk that comes with a lack of diversification. But here’s why I think buying this company as part of a balanced portfolio demands consideraton.
Jaw-dropping return
Games Workshop‘s (LSE:GAW) delivered a stunning annual return of 42.9% over the past decade. The products might not be to everyone’s tastes. But the exceptional capital gains it’s produced make it hard to ignore.
In a nutshell, the company designs, manufactures, and sells miniatures and tabletop games systems, chiefly under the Warhammer brand. Other products include paints, dice, and books that bring its products and the associated lore to life.
This is clearly a niche industry. But it’s a vast one — today Games Workshop has hundreds of stores and a distribution network spanning the globe — and it’s still growing rapidly as the fantasy gaming genre enters new markets. The FTSE company had revenues of £119.1m a decade ago. That’s since ballooned to £617.5m today.
There are two other reasons why I like Games Workshop shares. It is the market leader, and enjoys spectacular margins as a result (core gross margin was 69.5%, latest financials show). And the business is stepping up licencing of its highly popular intellectual property (IP) to help drive future growth, including a blockbuster TV and film deal with Amazon.
Growth powerhouse
Like any UK share, Games Workshop faces obstacles it’ll need to overcome in the years ahead to keep delivering delicious returns.
One is the problem of mounting competition as other games companies try to steal in on its markets. Adding to this, there’s also been substantial growth in the counterfeit market, fuelled by the rapid rise of 3D printing.
But so far, the premium quality of Games Workshop’s product — and aggressive moves to protect its IP — have helped it stay ahead of the curve.
These twin factors explain why City analysts remain confident in the company’s long-term profits outlook. Okay, they predict it will follow a 19% rise in annual earnings for the last financial year (to May 2025) with a 5% fall in the current period.
However, this reflects the likelihood of fewer major new product releases this year compared to the financial 2025 year. Brokers are tipping earnings to rebound 9% next year, as fresh new games are released and broader consumer spending recovers.
As part of a balanced portfolio, Games Workshop is a top growth stock to consider.
