You are here: Home - Investing - Experienced Investor - How to -

BLOG: Back in time, where should Marty McFly have invested in 1985?

Written by: Adam Lewis
In case you missed it, October 21 2015 marked what many people have termed Back to the Future day. This was the day in which Back to the Future II Marty McFly and Doc Brown travel into the future from 26 October 1985 in order to try stop McFly’s son from landing himself in jail.

Having watched this film a number of times since it was released back in 1989, the fact that the film is now officially set in the past is one which makes me feel ever so slightly old. Even sadder is the fact that hover boards are not universal, there are no flying cars and while they are said to be in development I still don’t own a pair of self-tying Nike trainers.

All that aside, Back to the Future Day was a good opportunity for some nostalgia based press releases about things Marty should have done in 1985 to have improved his finances 30 years on. So instead of buying an Almanac on sports results of the last 30 years, he should have picked up a copy of the US FT and spent his time researching fund returns.

If he had, according to JP Morgan Cazenove when he returned back to 26 October, 1985 Marty should have put some money into the Capital Gearing investment trust. If Marty had been able to invest £100,000 on that date it would have been worth £464,058 some 30 years later, leading the Capital Gearing trust to top a table of 20 conventional investment trusts that are still around today. This is more than enough to keep his son out of trouble, put him through university etc.

Following on from this finding the AIC crunched some additional data which shows that a £100 investment into the average investment trust would have been worth £1,978 over 30 years to 30 September 2015.

The top performing investment trust sector over 30 years was UK All Companies, turning a £100 investment into £3,319, followed along way back by Global which would have turned £100 (provided Marty could have got to currency exchange) into £2,091. The table below shows the top five sectors.

Top five sectors over 30 years  Return on £100 invested 
UK All Companies £3,319.50
Global £2,090.87
UK Equity Income £2,035.17
Europe £1,976.74
UK Smaller Companies £1,642.25

Source: AIC, using Morningstar data

However if he had wanted to make more money he could have just followed the Biff approach and used the Almanac, but maybe stayed away from predicting the Chicago Cubs winning the World Series in baseball. Despite making the playoffs, the film’s prediction of the Cubs lifting the trophy (for those who don’t know, the Cubs haven’t won the World Series in 107 years) ended with defeat versus the New York Mets.

Now, where’s my self-drying jacket?

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Your right to a refund if travel is affected by train strikes

There have been a wave of train strikes in the past six months, and for anyone travelling today Friday 3 Febru...

Could you save money with a social broadband tariff?

Two-thirds of low-income households are unaware they could be saving on broadband, according to Uswitch.

How to help others and donate to food banks this winter

This winter is expected to be the most challenging yet for the food bank network as soaring costs push more pe...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week