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.
I believe there are a number of shares that have the potential to generate returns like TPG Telecom, the key is finding them early. One share that has recently been tipped for very big things in the future is named for free here.
A little-known ASX company just unlocked what some experts think could be the key to profiting off the coming marijuana boom.
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Cannabis legalisation is sweeping over North America, and full legalisation arrived in Canada in October 2018.
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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 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.