Here’s what £10k invested in the FTSE 100 at the start of 2024 could be today.

I FTSE 100 The blue-chip index had a happy start to 2025, reaching a high of just over 8,445 on May 15 before retreating. Last week was mixed as investors worried about US interest rates. The index threatened to dip below 8,000 again before the meeting.

So it’s a bit unfair to take a snap today and make tough decisions. When AJ Bell observed on 17 December it increased by 7% in the year but now that is down to 4.7%. As we cannot repeat enough at The Motley Fooltemporary movements are not counted. It’s a long time that matters.

UK green chips seem irrelevant to me

The FTSE 100 doesn’t just deliver financial growth when share prices rise. Its stocks are increased through dividends, share buybacks and takeovers. AJ Bell investment director Russ Mold says after considering this the result is “confuse the prevailing bearish tone of commentary on UK shares”.

He added: “Total returns from the UK stock market in 2024 beat cash, bonds and inflation, but poor comparisons with the USA remain the stick the FTSE 100 is constantly beaten with.”

Ah yes, the US. I S&P 500 it has grown 25% year to date, smashing every index in the world. But it cannot compete with the FTSE 100 in terms of dividends as its average yield of 1.22% trails the FTSE 100’s 3.6%. This is important in the long run.

On December 10, AJ Bell found that after combining dividends, buybacks and takeovers, the FTSE 100 enjoyed its best year since 2021 with a total return of 11.4%.

Using its calculations, an investor who invested £10,000 at the beginning of January would have £11,140 today. That’s £1,140 more than they started with.

I buy individual stocks rather than tracking an index. So far this year, 18 stocks have generated a total return of more than 30% and nearly half of the index has generated double-digit returns.

Owner of British Airways International Airlines Consolidated Group (LSE: IAG) is a big winner. Its shares are up 95% year to date.

I saw its power, and, writing on 29 November 2023, that the price of IAG looks “Incredibly cheap, trading at only 3.8% of earnings forecast for 2023”. Sadly, I didn’t put my money where my mouth was.

The stock price may go higher in 2025

IAG is reeling from the devastating legacy of the pandemic, which left nursing bills of €11.6 billion as ships were grounded.

Q3 results on 7 November showed profits jumped 43.5% to €1.75bn, flights up 95.6%. The board has resumed allocations again.

Like all airlines, it is always vulnerable to many threats. Rising oil prices can drive up costs, wars can block roads and natural disasters can cause chaos.

However I think the shares look poised to take flight in 2025 as well, given the continued low multiple of 7.2 times earnings.

This is the pattern across the FTSE 100. UK stocks are about half the value of US ones. And there’s a lot of money coming in. As Russ Mold points out: “Analysts think the total pre-tax income of the FTSE 100 in 2025 will exceed 2018’s pre-Covid peak by £78bn or a further 46%.

I will focus my investment efforts on the FTSE 100 next year. I feel like I missed my chance with IAG but now I’m chasing stocks rather than being able to emulate its success in 2025 and beyond.