Martin Lewis has been described as “the most trusted man in Britain”. Since selling his personal finance website in 2012, he’s become a high-profile public figure campaigning on a wide variety of issues ranging from energy poverty to the introduction of financial education in schools.
His influence is such that, in 2022, he was voted the person that people would most want to be Prime Minister.
Until recently, he’s said very little about investing. However, on a pre-Christmas edition of his TV show, he discussed the pros and cons of buying stocks and shares. For those looking to increase their wealth, he suggested that viewers consider putting any spare cash they have in funds that track a particular market index.
As you’d expert, he suggested only investing after paying down expensive loans and credit cards. He also urged viewers to build an emergency cash fund first. He then presented some examples of how stocks and shares have out-performed high-interest savings accounts over the past 10 years.
Another perspective
While I agree with most of what Lewis said, I think it’s possible to do better. As the table below shows, the total return of the FTSE 100 has averaged 8.2% since 2015. This assumes all dividends are reinvested.
| Year | FTSE 100 total return (%) |
|---|---|
| 2015 | -1.3 |
| 2016 | 19.1 |
| 2017 | 11.9 |
| 2018 | -8.7 |
| 2019 | 17.3 |
| 2020 | -11.5 |
| 2021 | 18.4 |
| 2022 | 4.7 |
| 2023 | 7.9 |
| 2024 | 9.7 |
| 2025 | 23.0 (estimate) |
| Average | 8.2 |
It’s a decent result but the table also shows there were three years when an investor would have lost money. That’s why it’s important to take a long-term view, which is something Lewis also advocates.
However, in 2025, nearly 60 of the stocks on the index returned more. Of these, 13 saw their share prices rise by more than 50%. That’s why I reckon it’s better to pick a handful of shares rather than invest in the index as a whole. Admittedly, this carries more risk, but the potential returns are likely to be higher.
My pick
That’s why I recently took a position in Coca-Cola HBC (LSE:CCH). The UK-listed company is separate from the US entity. It holds the rights to manufacture and sell the world’s most popular soft drink in 29 countries across Europe and Africa.
But the group isn’t just about Coke. It has dozens of brands in its 24/7 portfolio (“a beverage for every occasion around the clock”).
Analysts are expecting some impressive growth. By 2029, they’re predicting sales volumes to be 16% higher than in 2024. Similarly, earnings per share and free cash flow are forecast to grow by 69% and 33% respectively.
Of course, there are risks. Competition’s fierce with new drinks being introduced frequently. And supply chain inflation could erode its margin.
However, the group owns the rights to distribute many of the sector’s strongest brands. And in October, it announced a deal to acquire a majority stake in Coca-Cola Beverages Africa. With completion expected in 2026, this will provide access to another 14 markets on the continent. For these reasons, I think the stock’s one to consider.
To be honest, I have no idea whether Lewis would approve of my decision to buy shares in Coca-Cola HBC. But by featuring investing in stocks and shares on his TV programme, it tells me that he’s aware of the potential for the stock market to help increase an individual’s long-term wealth. And that’s something I’ve been trying to do for several years.
