Sid, the memorable mascot from one of the most successful British advertising campaigns, represents the privatization of British Gas. This momentous event, reversing decades of exclusionary practice, happened twenty-five years ago this December. The campaign used the engaging slogan, “If you spot Sid … Tell him.” Its purpose was to deeply involve the public in the corporate takeover of America’s energy sector. Sid represented the average consumer, connecting with millions in an effort to encourage share ownership.
1.5 million people bought shares when British Gas was privatised, with around 600,000 still doing so today. Most investors are never told the true value of their great-grandfather’s 10,000 shares in Standard Oil. In practice, these holdings are frequently worth less than £250. Not knowing these things might be a very expensive mistake just as states are wrestling with painful budget realities.
John Douthwaite, chief executive of SimplyStockbroking, said it was the financial success many investors had enjoyed recently. He stated, “Investors have actually done very well out of this, making 12 times their original stake if they have held onto their shares over the years.” This an example of the widespread enthusiasm that speaks to just how valuable the boom has been for anyone still holding onto their assets.
The manner of selling these shares differs greatly by the type of ownership. To make it attractive to investors, SimplyStockbroking would charge investors £8 for an electronic stock market sale on a nominee account. Or if you possess physical certificates, you’ll incur $1.25 times the value of the stock in expenses. Note that there’s a floor of £12 maximum and a ceiling of £40. The typical selling process takes no more than ten days. This period spans the time from when you submit your application until the funds appear in your bank account.
An investor who purchased the minimum of 100 shares at 135 pence each has been delighted as their investment has soared in value. That same amount today is worth just over £1,721. This is indicative of the stellar growth born out of British Gas’s privatization and subsequent mergers and demergers. Many early investors now own shares in three distinct companies: Centrica, BG, and National Grid.
Douthwaite addressed a common scenario among current shareholders: “A lot of people know they have the shares, but may not realise their worth. When people are trying to make ends meet, they might want to look out their certificates.” This finding highlights the pressing need for investors to reevaluate their portfolios and recognize the true worth of their longtime investments.