The proof of the pudding is in the eating. Below is the journey of the Snowball to date.

The Snowball was started with a seed capital of 100k and the first dividend was earned on the 25/11/22.

Dividends to date all year end.

2022 £1,609.21

2023 £9,422.59

2024 £10,796.00

The actual amount of dividends varied as some companies paid a special dividend which isn’t repeatable.

The plan copied below was to increase the Snowball by compound growth of 7% per year.

The snowball effect in investing refers to the power of compounding, where small investments grow exponentially over time. This concept is central to long-term wealth building, and Warren Buffett himself has famously used it to amass his fortune. As the Snowball rolls along the Snowball gathers more mass and continues to grow in size.

How It Works:

  1. Reinvesting Profits – When you reinvest dividends or returns, your investment base grows, leading to even larger future returns.
  2. Compounding Interest – Earnings generate more earnings, creating a cycle of exponential growth.
  3. Consistent Contributions – Regularly adding to your investments accelerates the snowball effect.

Example:

Imagine you invest in dividend-paying stocks. Over time, as dividends are reinvested, you acquire more shares, increasing your future dividend payouts. This cycle continues, leading to massive wealth accumulation.

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The plan.

Year End Dividends

2023/£7,000

2024/£7,490

2025/£8,014

2026/£8,575

2027/£9,175

2028/£9,817

The current projection for 2025 is £10,000 because the yields on most REIT’s and Renewables were above 7% for the period above. Note that most REIT’s have corrected in value and as the price rises the yield falls. Also remember most Investment Trusts try to increase their dividends by inflation or above.

The Snowball is well ahead of the time line with the current expected dividend equal to the year end of 2028.

The fcast for next year could be increased to £10,700 with a target of £11,000 but early days for that.