The lack of technology stocks on the FTSE 100 means the index is often overlooked. Despite this, I still think there’s an opportunity to make serious money from some of the UK’s largest listed companies. Indeed, by taking a long-term view, I believe it’s possible to build a chunky portfolio starting with a relatively modest sum.
What’s more, with the Footsie’s large exposure to HALO (heavy assets, low obsolescence) stocks, now could be a good time to consider investing closer to home. Let’s explore this further.
Back in fashion
Earlier this year, Goldman Sachs identified a trend among its clients of moving out of artificial intelligence (AI) stocks towards those with asset-heavy balance sheets. Fears that tech sector valuations were becoming stretched is an obvious reason for the change of emphasis.
But owning expensive assets also acts as a barrier to new entrants. This could explain why earlier this year, the FTSE 100 hit a series of record highs. And the recent pullback in the index as a result of the conflict in the Middle East could be a buying opportunity to consider.
“After more than a decade of under‑investment (particularly in Europe), corporates are shifting decisively back toward physical assets.”
Goldman Sachs
One FTSE 100 company that owns plenty of assets is Endeavour Mining (LSE:EDV), operating five gold mines in Senegal, Burkina Faso, and Cote d’Ivoire. And with a combined expected life in excess of 10 years, there’s plenty of highly valuable precious metals still ready to be brought to the surface.
Of course, mining is operationally challenging. Bad weather, strikes, and equipment failure are just three reasons why production could be interrupted. There are also political risks associated with doing business in West Africa. Burkina Faso’s military leader recently said in a TV interview that “democracy is not for us”.
Despite these challenges, the stock’s delivered some impressive gains over the past year or so. Since the start of January 2025, Endeavour Mining’s share price has rocketed 230% due to a soaring gold price. It means a £500 investment made on 1 January 2025, is now (21 April) worth £1,659. That’s an incredible profit of £1,159.
Include the dividends of $2.02 (£1.50) a share and the gain becomes £1,210 (242%).
Could this amazing run continue?
If the most optimistic analyst is correct, a £500 investment today could grow to £602 within 12 months. But the consensus is that the group’s shares are fairly priced.
Since achieving an all-time high in January, the gold price has slipped back by around 17%. Reduced expectations of US interest rate cuts are to blame.
But many of the world’s central banks are still buying gold. Its reputation as a safe haven makes it particular attractive during times of economic uncertainty. Analysts are expecting up to 800 tonnes to be bought in 2026. In March, China recorded its 17th consecutive month of an increase in its gold stockpile.
A number of banks are forecasting the price of the precious metal to reach $6,000/oz this year. It’s currently trading at around $4,800. Forecasts beyond this period need to be taken with a pinch of salt but I’ve seen one prediction that it could reach $10,000 by 2036.
Against this backdrop, along with its strong balance sheet and one of the industry’s lowest costs of production, I think Endeavour Mining remains a stock to consider by long-term investors as part of a diversified portfolio.
