Tim Taubman, a former banker, says most families can accumulate billion-pound fortunes over generations. His approach avoids relying on sudden wealth or high salaries. Instead, it depends on compound growth, disciplined investing, and leaving funds untouched for decades.
The billion-pound experiment
Taubman, now 55, has monitored a fictional portfolio on his blog, The Crazy Plan, for two years. He claims starting with £10,000 or £50 monthly could turn into £1 billion in 76 years and five months. Under his projections, he would be 131 when the portfolio reaches that milestone.
Setting such an ambitious target helps people recognize long-term opportunities, he explained. The goal is to secure financial stability for future generations.
The portfolio has amassed £22,929 since early 2024. Gains stem from a unit fund currently consisting of ten different investments.
Two paths to a billion
Taubman’s method presents two routes. One begins with a £10,000 lump sum, while the other involves £50 monthly contributions for a decade. Both share the same end goal.
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His model assumes a 15% annual return, well above historical averages. The FTSE World Index has delivered 9.64% annually over the past 22 years. UBS data dating back to 1900 shows global stock returns averaging about 5% after inflation.
Charlotte Kennedy, a financial planner at Rathbones, described the 15% target as highly ambitious. While compound growth is powerful over long periods, she pointed out that most investors would not expect such returns consistently.
Even at a more conservative 10% return, the lump-sum approach would grow to £21.1 million after 80 years—still a transformative amount.
For most, leaving money untouched for nearly a century seems impractical. Yet Taubman’s approach demonstrates how small, steady investments can build significant wealth over time.
The catch: time, risk, and patience
The main challenge isn’t the calculations—it’s maintaining discipline. To reach a billion, investors must avoid withdrawals, no matter the circumstances. The funds would transfer to children and grandchildren, who might never know the original investor.
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For those unwilling to wait, the strategy still offers benefits on a smaller scale. A £50 monthly investment could grow into hundreds of thousands over 40 years, even with lower returns. However, the billion-pound outcome demands ideal conditions: no market downturns, no personal crises, and a portfolio that consistently outperforms.
Kennedy’s skepticism reflects broader concerns. “The theory makes sense, but execution is difficult,” she said. Most investors lack the knowledge or patience to sustain such an aggressive strategy for decades.
Taubman recognizes the risks. His portfolio leans heavily on t
“You must accept never spending that money,” he said. “The issue isn’t whether it’s possible—it’s whether you’re prepared to wait.”
