How to turn $20,000 into $575,000 with ASX shares

The TPG Telecom Ltd (ASX:TPM) share price has been a very strong performer over the last decade, making its long-term shareholders very wealthy…

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

I'm a big advocate of buy and hold investing and believe it is one of the best ways to grow your wealth over the long term.

To demonstrate how successful it can be, I've picked out a number of popular ASX shares to see how much a $20,000 investment ten years ago would be worth today.

They are as follows:

The Flight Centre Travel Group Ltd (ASX: FLT) share price recently hit a 52-week low due to concerns over the performance of its Australian leisure business. Despite this and the shift to online travel booking, Flight Centre's shares have smashed the market over the last 10 years. During this time they have provided a total return of 24.5% per annum, meaning a $20,000 investment a decade ago would be worth $179,000 today.

The success of its Smiggle and Peter Alexander brands has taken the Premier Investments Limited (ASX: PMV) share price notably higher over the last decade. During this time the retail conglomerate's shares have provided investors with a total return of 16.1% per annum, which turns a $20,000 investment into $89,000.

The early success of its software-as-a-service platform business has taken the Technology One Limited (ASX: TNE) share price to an all-time high recently. This strong form means the software company's shares have now generated a total return of 29.3% per annum over the last decade. If you had invested $20,000 in its shares 10 years ago, that investment would have grown to be worth $261,000.

The TPG Telecom Ltd (ASX: TPM) share price may be trading significantly lower than its all-time high, but it has still generated outstanding returns for its shareholders over the last decade after going from a telco challenger to an industry leader. This led to its shares providing a total return of 39.9% per annum over the period, meaning a $20,000 investment would be worth a staggering $575,000 today.

Woolworths Group Ltd (ASX: WOW) shares have provided a total return of 5.35% per annum over the last 10 years. This disappointing return has largely been caused by an underperformance over the last five years due to increasing competition in the supermarket industry. A $20,000 investment in Woolies shares 10 years ago would be worth $33,700 today.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Flight Centre Travel Group Limited and Premier Investments 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.

More on How to invest

A couple sits in their lounge room with a large piggy bank on the coffee table. They smile while the male partner feeds some money into the slot while the female partner looks on with an iPad style device in her hands as though they are budgeting.
How to invest

Where to invest $8,000 in April 2024

Here's what sort of returns could be on offer from these ASX shares according to analysts.

Read more »

An ASX dividend investor lies back in a deck chair with his hands behind his head on a quiet and beautiful beach with blue sky and water in the background.
How to invest

Shares vs. property: How to generate $500 passive income per month

We run the numbers.

Read more »

A woman holds a lightbulb in one hand and a wad of cash in the other
How to invest

ASX 200 shares vs term deposits: What $5,000 invested a year ago is worth now

Which has been the superior option for investors?

Read more »

Kid on a skateboard with cardboard wings soars along the road.
How to invest

Shares vs. property: Why cheaper homes and ASX small-cap shares are rising fastest in 2024

We look into the changing trends in shares vs. property.

Read more »

Smiling young parents with their daughter dream of success.
How to invest

2 ASX shares that could help set you up for life

Analysts are saying good things about these buy-rated shares.

Read more »

a man wearing casual clothes fans a selection of Australian banknotes over his chin with an excited, widemouthed expression on his face.
How to invest

$20,000 invested in these ASX 200 shares 10 years ago is worth how much?

Would you be laughing all the way to the bank today or not?

Read more »

Busy freeway and tollway at dusk
How to invest

If inflation rebounds I'll be buying this leading ASX 200 share

Inflation doesn’t impact all ASX 200 shares equally.

Read more »

Businessman working and using Digital Tablet new business project finance investment at coffee cafe.
How to invest

Forget term deposits and listen to Warren Buffett's advice with ASX shares

Are you missing out if you buy term deposits?

Read more »