I'm a big fan of buy and hold investing and believe it is one of the best ways for investors to grow their wealth.
To demonstrate how successful it can be, every 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 four shares that are listed below:
If you had bought the shares of Accent Group Ltd (ASX: AX1) 10 years ago you would have generated market-beating returns. Over the last decade the footwear-focused retailer has delivered strong sales and profit growth thanks to the expansion of its store network and earnings accretive acquisitions. This has led to the company's shares providing investors with an average total return of 18.4% per annum, which would have turned a $20,000 investment in its shares into $108,300.
The resounding success of the industry-leading trophon EPR disinfection system for ultrasound probes has led to Nanosonics Ltd (ASX: NAN) shares generating mouth-watering returns for investors over the last decade. Over this time the infection control specialist's shares have provided an average total return of 29.5% per annum, which would have turned a $20,000 investment into a whopping ~$265,000.
Thanks to its leadership position in a market that unfortunately continues to grow, funeral operator InvoCare Limited (ASX: IVC) has been a solid performer over the last decade. During this time InvoCare's shares have generated an average total return of 11.2% per annum. This means that a $20,000 investment 10 years ago would now be worth approximately ~$58,000.
Although the last couple of years have been tough for TPG Telecom Ltd (ASX: TPM), it has still been a strong performer over the last 10 years thanks to its emergence as one of the leading players in the telco sector. Over this time its shares have generated an impressive average total return of 25.2% per annum. This would have turned a $20,000 investment in TPG Telecom's shares into approximately ~$190,000.
