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.
Today I have picked out the three shares found below.
Domino's.
Although the Domino's Pizza Enterprises Ltd (ASX: DMP) share price is down by around a third from its all-time high, the pizza chain operator has still been an incredible place to put your money over the last decade. Over this period Domino's Pizza Enterprises has evolved from being a small local operation to a vast multi-country operation with thousands of restaurants. Furthermore, it is now the largest franchisee for the Domino's Pizza brand in the world. This has led to its shares generating an average total return of 29.7% per annum. Which would have turned a $20,000 investment into $269,400.
Sydney Airport.
The Sydney Airport Holdings Pty Ltd (ASX: SYD) share price has been a strong performer over the last 10 years thanks to a combination of the tourism boom and its position as the main gateway into Australia. In addition to this, Sydney Airport's shares have benefited from increasing demand for bond proxies over the last few years as interest rates have fallen. This has led to the airport operator's shares providing a total return of 16.25% per annum over the last decade. This would have turned a $20,000 investment into $90,150.
Technology One.
Investors that bought Technology One Limited (ASX: TNE) shares 10 years ago and held onto them will no doubt be smiling today. Strong demand for its services and the emergence of its SaaS business have led to robust earnings growth over the period. This has led to the enterprise software company's shares generating a total return of 27.65% per annum over the last 10 years. If you had invested $20,000 into its shares it would be worth $230,000 today.
