Arguably one of the best ways to grow your wealth over the long term is through buy and hold investing.
To demonstrate how successful this investment strategy can be, I’ve picked out a number of popular ASX shares to see how much a single $20,000 investment ten years ago would be worth today.
Here’s what I found:
Due to the expansion of its distribution network and increasing demand because of ageing populations, Cochlear Limited (ASX: COH) has delivered exceptionally strong sales and profit growth over the last decade. This has led to the hearing solutions company’s shares generating an average total return of 15% per annum over the last 10 years. Which means that anyone that invested $20,000 into its shares a decade ago, would have seen their investment grow to be worth approximately $81,000 today.
Pro Medicus Limited (ASX: PME) is a healthcare technology company which provides a full range of radiology IT software and services to hospitals, imaging centres, and health care groups worldwide. Thanks to the growing popularity of its revolutionary product suite, Pro Medicus has been growing at an astonishing rate over the last decade. Because of this, its shares have been amongst the best performers on the market, generating an average total return of 41.8% per annum over the period. This means a single $20,000 investment in June 2009 would be worth a staggering $657,000 today.
Over the last 10 years SEEK Limited (ASX: SEK) has cemented its position as the job listings leader in Australia and grown its presence significantly in a number of international markets. This has sent its share price surging notably higher, leading to an average total return of 19.2% per annum. This would have turned a $20,000 investment a decade ago into $116,000 today.
The TPG Telecom Ltd (ASX: TPM) share price has been a very strong performer over the last decade. During this time the company has transformed itself from a telco challenger into a leader in the industry. This success has led to the company’s shares generating a mouth-watering average total return of 33.7% per annum over the last decade, which would have turned a $20,000 investment into $365,000.
Overall, I think the key to generating wealth from ASX shares is to find quality businesses early, which is easier said than done. Perhaps these two exciting shares are the ones we'll be talking about in ten years.
It’s hard to believe what these 2 ASX companies could mean to the digital payments revolution
The Motley Fool’s top tech analyst has spent years studying the huge global trend in which cash and traditional banks give way to new digital payments systems... And now he’s identified the two ASX companies he believes are poised to win this multi-trillion-dollar “war on cash.”
If he’s right, these two companies could power your portfolio for years to come. Heck, stock #1 is already up 204% in just the last two years...
While Stock #2 has climbed a stunning 954% just since 2015.
Yet we think the biggest returns look to be still ahead. In fact, our expert is convinced investors who act now could be in for 10X gains (or more). Which means you will want to get the details on these 2 ASX companies as soon as possible.
So click the link below right now! We’ll tell you how to pick up your free copy of this brand new report, “Leave Your Wallet at Home: 2 Stocks for the Digital Payments Revolution”…
James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Pro Medicus Ltd. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Cochlear Ltd. The Motley Fool Australia has recommended Cochlear Ltd., Pro Medicus Ltd., and SEEK 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.