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:
Although the Blackmores Limited (ASX: BKL) share price is down around 60% from its all-time high, it has still generated excellent total returns of 17.9% per annum for investors over the last 10 years. This means that a $20,000 investment in the health supplements company’s shares a decade ago would have grown to be worth ~$105,000 today.
The CSL Limited (ASX: CSL) share price has been one of the best performing blue chips over the last decade thanks to the incredible success of its CSL Behring business and the increasing demand for Immunoglobulins. Over the 10 years the biotherapeutics company’s shares have provided a total return of 22.1% per annum. This would have turned a $20,000 investment in to $147,000.
Due to the shift from property listings being predominantly in newspapers to being online, REA Group Limited (ASX: REA) has grown at an exceptional rate over the last 10 years. This has resulted in strong profit growth and even stronger total returns for its shareholders. Over the period the realestate.com.au operator’s shares have generated an average total return of 31% per annum. This would have turned a $20,000 investment in its shares into a whopping ~$300,000.
Increasing domestic and international tourism in Australia and those ever-increasing car park prices have helped Sydney Airport Holdings Pty Ltd (ASX: SYD) shares generate strong returns for investors over the last decade. During this time the airport operator’s shares have provided a total return of 15.4% per annum, which would have turned a $20,000 investment into almost $84,000 today.
But that was the last 10 years, what about the next 10 years? My money would be on these outstanding shares providing market-beating returns for investors over the next decade.
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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 Blackmores Limited and Sydney Airport Holdings Limited. The Motley Fool Australia has recommended REA Group 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.