We have some exciting news to share! The Motley Fool UK has now become The Twelfth Magpie -- an independent, UK-owned company, led by our long-serving UK management team — Mark Rogers, Chris Nials and Heather Adlington. In practical terms, it’s the same team you know, now fully focused on serving our UK readers and members.

Just as importantly, our approach remains unchanged: long-term, jargon-free, and on your side. This site is our new home, and there will be extra tweaks made across the coming few days as we settle in. So if anything looks a little off, please bear with us!

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

FTSE 100 shares are up 17% this year. Is it too late to invest?

The FTSE 100 index of leading British blue-chip shares is up by close to a fifth since the start of 2025. Our writer explains what he’s doing about that.

| More on:
One English pound placed on a graph to represent an economic down turn

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

At the start of 2025, there was no specific reason to expect that the FTSE 100 index of leading British shares would enjoy a rip-roaring year.

Along the way, there have been some causes for concern, not least market reaction to April’s announcement of new US tariff policies.

XXX

Still, the blue-chip index has racked up a 17% gain in value so far this year. For an index of large companies, many of them in mature industries, I think that is impressive. Might it still be worth my time investing in the index now, after that gain, for example by buying shares in an index tracker?

Things may continue well

I think it could be, but I do not plan to! I will explain below what I am doing instead. But first, why do I think there could potentially be merit to the idea of me investing in the index even now?

Put simply, I am a believer in long-term investing.

The FTSE 100 index includes many of the country’s biggest companies. From a long-term perspective I am bullish about the outlook for the UK economy and therefore for the index too. In the short-to-medium-term, of course, things could go either way. But I do see an argument for the index to keep rising.

After all, it remains more cheaply valued that its US counterpart. This year’s performance has proven that even a fairly sluggish British economy need not hold the index back.

I’m buying individual shares

Still, there is also a point of view that the 17% gain is hard to justify given the overall economic performance this year — and the outlook for 2026 and beyond.

If the global economy enters a rough patch, I expect that would have a negative impact on the FTSE 100. So instead of investing in an index tracker, I continue to look for individual shares to buy.

One share I’ve been buying this year

Given how well the FTSE 100 has done this year, have all its constituent members also done well?

Certainly not! For example, brewer and distiller Diageo (LSE: DGE) has had a torrid 2025 to date, losing 35% of its value and a chief executive to boot.

There are short-term worries about weak spirits sales in many markets, threatening profits. But there is also a bigger picture concern troubling many investors’ minds: what declining alcohol consumption rates among younger generations could mean for beer and spirits sales.

Sure, Diageo has developed alcohol-free versions of iconic brands like Guinness and Gordon’s, as well as acquiring non-alcoholic brands Seedlip and Ritual Zero Proof (better known to American drinkers than Britons, underlining Diageo’s global reach).

But will that be enough to help sustain revenues and profits, as well as support the dividend? After all, Diageo is one of only a few FTSE 100 members to have grown its dividend per share annually for decades.

I hope it will be enough. With unique brands, a large distribution network and deep relationships in the drinks industry, I am optimistic about Diageo’s outlook.

Indeed, I have added the share to my portfolio this year.

C Ruane has positions in Diageo Plc. The Motley Fool UK has recommended Diageo Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

Friends and sisters exploring the outdoors together in Cornwall. They are standing with their arms around each other at the coast.
Investing Articles

£503 buys 14 shares in this FTSE 250 stock that returned 23.9% annually for the last 15 years

This FTSE 250 stock has averaged a huge return for 15 years. At today's price, £503 buys 14 shares. But…

Read more »

Black woman using loudspeaker to be heard
Investing Articles

£1,000 buys 25 shares in this FTSE 100 stock that’s returned 29.2% annually for the last 10 years

This FTSE 100 mining stock has returned close to 30% a year for a decade. At 3,995p, £1,000 buys 25…

Read more »

Female student sitting at the steps and using laptop
Investing Articles

Down 47%, is this growth stock finally worth buying in May?

With a £288m order book and a hidden pipeline of defence and nuclear contracts, is this growth stock now too…

Read more »

House models and one with REIT - standing for real estate investment trust - written on it.
Investing Articles

2 REITs yielding 7%+ to consider for passive income in 2026

A REIT backed by the NHS and another backed by Tesco and Sainsbury's with both yielding 7%+. Here's why I'm…

Read more »

Woman riding her old fashioned bicycle along the Beach Esplanade at Aberdeen, Scotland.
Investing Articles

Just 97 shares of this UK dividend stock generate £238 in passive income

A 5.7% yield, £238 in passive income from just 97 shares, and one of the most divisive dividend stocks on…

Read more »

ISA coins
Investing Articles

£10,000 in an ISA generates a second income of…

The London Stock Exchange is home to some of the world's most generous dividends. But how big a second income…

Read more »

Shot of a senior man drinking coffee and looking thoughtfully out of a window
Investing Articles

Expert recommendations: 2 top income stocks yielding 7%+!

With yields of 7.2% and 7.8% respectively, these two income stocks are catching the eyes of institutional analysts. Should investors…

Read more »

Illustration of flames over a black background
Investing Articles

3 top income-focused stocks to buy in May 2026, according to experts

Looking for a stock to buy for income in May 2026? Experts have flagged these three UK dividend shares as…

Read more »