AIM shares is not for widows and orphans

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AIM shares is not for widows and orphans
« on: May 21, 2021, 04:02:17 PM »
Can you make money on AIM?

To roll out an often-used cliché, investing in AIM shares is not for widows and orphans or inexperienced first-time investors for that matter.

AIM listed companies are high risk, high return and while the rewards might occasionally follow, the hard evidence over the long term suggests you are more likely to lose money than make money on AIM shares.

The evidence on returns from investing in AIM shares comes from a study conducted by two professors at the London Business School – Elroy Dimson and Paul Marsh. They examined the performance of 2,877 AIM listed companies since its formation in 1995 and its twenty-year anniversary in 2015 and their main findings were as follows:

  • AIM’s annualised total return was minus 1.6% per annum when measured over the twenty-year period
  •   Between 1995 and 2015, investors would have lost money in 72% of all the companies to have listed on AIM
  •   They calculated that in more than 30% of the sample size, shareholders lost at least 95% of their investment
  •   39 companies (or 1.4% of the sample size) have achieved multi-year returns in excess of 1,000%.


« Last Edit: May 21, 2021, 04:04:32 PM by Admin »