I’m a big fan of buy and hold investing and believe it is one of the best ways to grow your wealth.
To demonstrate how successful it can be, ever so often I like to pick out a number of popular ASX shares to see how much a single $20,000 investment ten years ago would be worth today.
This time around I have picked out the three shares that are listed below:
A home appliance business may not appear to be the most exciting thing to invest in, but the returns that have been generated by Breville Group Ltd (ASX: BRG) shares certainly have been. Over the last 10 years Breville’s shares have smashed the market and provided an average total return of 35.1% per annum. This would have turned a $20,000 investment a decade ago into a whopping $400,000 today.
Toll road operator Transurban Group (ASX: TCL) is a big favourite of income investors and it isn’t hard to see why. Thanks to the increasing popularity of its roads, toll price increases, and expansion projects, Transurban’s shares have generated an average total return of 17.5% per annum over the last decade. If you had invested $20,000 into the company’s shares in July 2009 and reinvested its generous distributions, that investment would have grown to be worth a cool $100,000 today.
One of my favourite buy and hold options on the Australian share market is biotherapeutics giant CSL Limited (ASX: CSL). You only need to look at the market beating returns that its shares have generated over the last 10 years to see why. During this time the success of its products, plasma collection network, and development pipeline has led to CSL providing an average total return of 22.3% per annum over the period. This would have turned a $20,000 investment into approximately $150,000 today.
That was then, though. So which shares will provide market-beating returns over the next decade?
My money would be on these top shares which have strong businesses and equally strong growth prospects.
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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 CSL Ltd. The Motley Fool Australia owns shares of and has recommended Transurban Group. 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.