£20,000 invested in FTSE Shares 10 years ago is now worth…

Investing £20,000 in FTSE shares could have earned anywhere between £34,317 all the way to £116,200 if the right moves were made.

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Investing in FTSE shares has proven to be an effective way to build wealth over the last 10 years. While the stock market has endured some significant periods of volatility, established UK stocks have still gone on to generate robust returns for long-term investors. And for those who’ve been picking individual stocks directly, making the right moves could have been game-changing.

So just how much money have investors been making since 2015? Let’s explore.

Performance of index investors

Looking at the UK’s flagship FTSE 100 index, the last decade’s been quite rewarding. Assuming investors were reinvesting all their dividends, the index has generated a 124% return, enough to transform a £20,000 initial investment into £44,782.

What about the FTSE 250? Performance here has been a bit weaker. Many of its constituents are reliant on the British economy, which hasn’t exactly been in rapid growth mode of late. As such, the total return over the same period stands at just 71.6%, turning £20,000 into £34,317.

Yet investors who expanded their exposure across all FTSE shares with the FTSE All-Share index enjoyed the best of both worlds, reaping a 117% total gain, enough to turn £20,000 into £43,400.

Performance of stock pickers

While the gains provided by the UK’s leading indices are certainly nothing to scoff at, they still pale in comparison to some individual FTSE shares.

Obviously, not every stock’s been a winner. And there have been plenty of losers that have harmed investor wealth. Yet, those who spotted winning businesses early have gone on to unlock pretty remarkable gains.

For example, since September 2015, the share price of Premier Foods (LSE:PFD) has climbed by a whopping 450%. When throwing in the extra gains from the recently reinstated dividends, the total return increases to 481%. And in terms of money, the same initial £20,000 investment as before would now be worth around £116,200!

Still worth considering in 2025?

As a quick reminder, the business is a leading food producer that’s responsible for several popular brands in Britain, including Ambrosia, Sharwood’s, and Mr Kipling, among others. Its market-beating performance stems from an impressive, successful turnaround executed by new leadership that saw the long-stagnant enterprise repair its balance sheet and restore organic growth.

That same strategy continues to be executed in 2025. The firms piggybacking off existing brands to launch new products, as well as searching for bolt-on acquisition opportunities to grow its brand portfolio. At the same time, the group’s increasing its international presence, particularly in Australia and Canada, opening the door to potentially substantial new growth opportunities in new markets.

Having said that, the company isn’t without its risks. Premier Foods needs a constant and steady supply of raw ingredients to manufacture its products, making it susceptible to input inflation risks.

Customer loyalty to its brands does provide some flexibility in pricing power. But with the rise of cheaper private label brands, the firm’s ability to pass on costs is likely limited, potentially resulting in margins being squeezed.

Nevertheless, with the shares still trading at an undemanding valuation even after rising significantly, investors may want to consider taking a closer look at this enterprise.

Zaven Boyrazian has no position in any of the shares mentioned. The Motley Fool UK has recommended Premier Foods Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

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