$10,000 invested in Altium Limited shares 10 years ago is worth this much today

I’m a big advocate of buy and hold investing and believe that it is a strategy that can create significant wealth for investors.

You only need to speak to long term shareholders of electronic design software company Altium Limited (ASX: ALU) to see just how successful the strategy can be.

Over the last decade Altium has gone from being a small cap share flying under the radar to a well-known tech star and part of the so-called WAAAX group of shares with WiseTech Global Ltd (ASX: WTC), Afterpay Touch Group Ltd (ASX: APT), Appen Ltd (ASX: APX), and Xero Limited (ASX: XRO).

This rise to prominence has led to its shares providing shareholders with an average annual total return of 44.8% over the last decade.

To put that into perspective, it means that a $10,000 investment in its shares 10 years ago would have grown to be worth a staggering $405,000 today.

While this level of return is admittedly rare, there are a good number of shares on the market that have provided similarly strong gains.

For example, the shares of ARB Corporation Limited (ASX: ARB), the 4×4 parts manufacturer, have generated an average annual total return of 22.6% over the period.

Billing software specialist Hansen Technologies Limited (ASX: HSN) has seen its shares average an annual total return of 31.1% during the last decade. This is despite its shares falling 28% from their all-time high this year due to a weak trading update in June.

And finally, Blackmores Limited (ASX: BKL) shares may be down 32% from their all-time high and trading close to a 52-week low, but they’ve still averaged an annual total return of 27.5% over the last 10 years.

The latter would have turned a $10,000 investment made 10 years ago into $113,000 today.

Overall, I believe these examples demonstrate the power of buy and hold investing and why it can be worth holding onto the shares of quality companies for long periods of time.

And this tech share could be the one to generate market-beating returns over the next decade if you ask me.

Analyst names tech share as top pick

Scott Phillips has stumbled upon a little-owned stock he believes could be one of the greatest discoveries of his 25 years as a professional investor.


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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Blackmores Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO, Altium, Appen Ltd, WiseTech Global, and Xero. The Motley Fool Australia has recommended ARB Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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