Here are the best-performing FTSE 100 shares over the last 10 years.

Over the past decade, shares in private capital solid Group 3i (LSE:III) left the rest FCS index 100 in the dust. The stock is up a whopping 773%.

Such results over a long period of time indicate unusually good business. And I think the company will remain in a strong position in the future.

What is group 3i?

The big difference between 3i and other private equity firms is that it does not raise outside funds from investors. Since 2015, the company has been investing exclusively with its own capital.

This may not seem like a big deal, but I think it’s hard to overstate how important it is. In my opinion, this is the main reason the stock has performed so well over the past 10 years.

The problem for private equity firms is that capital inevitably comes when things are going well. Investors want to get in on the action, but that’s when bargains are hardest to find.

On the other hand, no one wants to invest in a business when things are going badly. But that’s when firms that have money to use can find the best opportunities to make a profit.

By managing only its own money, 3i avoids this problem. Having no outside investors to answer to means the company can wait for opportunities and be prepared when they arise.

This was not always the case – until 2015, the company operated from external sources of financing. But a look at a company’s share price before and after that point will tell investors everything they need to know.

Action (and inaction)

3i’s biggest investment – and its biggest success story – was in Action. It is a discount retailer operating in 12 different countries.

In short, 3i invested around £106 million in Action in 2011. And since then it has received back £2.9 billion. dividends and values ​​its stake in the company at around £14 billion.

However, there are a few things to pay attention to. First, Action was borrowing while also paying dividends, so it’s not quite the cash machine it might seem at first glance.

Second, the company is not publicly traded, so its market value is a little less clear. And 3i was accused of inflating this amount on its balance sheet.

This is an important point. The shares represent more than half the net asset value of a FTSE 100 company, so potential investors should understand the reasons for the valuation and be comfortable with it.

These questions are important, but the bottom line is that 3i returns more than the initial investment each year. This means the investment was successful by any standard.

More of the same

Whatever Action’s growth prospects, the 3i still has its key advantage. Its ability to wait for the right opportunity sets it apart from other private equity firms.

This is why the company’s shares have been the leaders of the FTSE 100 index over the past 10 years. And I think he has every chance to continue to do well in the future.

I’d like to take a closer look at the Action 3i’s rating. But at the same time, the stock is on my list of stocks that I am considering buying.