A former banker, Tim Taubman, has proposed a long-term investment strategy he believes could turn future generations into billionaires. Taubman, who has been sharing his research on his blog 'The Crazy Plan' since early 2024, suggests that investing as little as £50 per month could lead to substantial wealth accumulation over several decades.
Taubman's concept originated from his own financial planning and a desire to leave a lasting legacy. He has been tracking two fictional investment plans designed to reach a billion dollars. His calculations indicate that a lump sum investment of £10,000 could reach the billion-dollar mark in approximately 76 years and five months, while a monthly investment of £50 over a ten-year period could take around 86 years and one month. These timelines assume an ambitious annualised return of 15 percent.
Financial experts have noted that while compound growth is powerful over extended periods, achieving a consistent 15 percent annual return is challenging for most investors. For comparison, the FTSE World Index has averaged 9.64 percent annually over the past 22 years, and historical data suggests average real returns from global stocks have been around 5 percent per year since 1900. If a 10 percent average annualised return were achieved, Taubman's £10,000 lump sum plan would yield an estimated £21.1 million after 80 years.
Taubman's personal portfolio, which he claims has generated returns of 27 percent annually, consists of a mix of investment trusts and exchange-traded funds (ETFs). His strategy is growth-focused, with significant exposure to U.S. and technology stocks, including holdings in Allianz Technology and Scottish Mortgage. He acknowledges the tech-heavy nature of his portfolio but emphasizes looking at long-term returns in the sector.
While the goal of creating billionaires for future generations is central to his plan, Taubman also suggests that more modest savings can still lead to millions. For instance, a 25-year-old starting the monthly plan could build a pot of approximately $1.1 million by age 65, assuming a consistent rate of return. This strategy requires a high tolerance for risk and the discipline of not accessing the funds for decades to fully leverage compound growth.