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 listed below.
Altium Limited (ASX: ALU)
The Altium share price has been one of the best performers on the ASX over the last 10 years. During this time the electronic design software provider's lucky shareholders have seen Altium's shares generate an average total return of 64.3% per annum. The catalyst for this has been the emergence of the Internet of Things (connected devices) and the increasing demand this has created for its industry-leading Altium Designer product. A $20,000 investment in Altium's shares 10 years ago would be worth a staggering ~$2.9 million today.
Cochlear Limited (ASX: COH)
Growing demand for hearing solutions products due to the ageing populations boom has led to Cochlear shares providing market beating returns for investors over the last decade. During this time the shares of the manufacturer and distributor of cochlear implantable devices for the hearing impaired have provided an average total return of 13.75% per annum. This would have turned a $20,000 investment into $72,500.
Technology One Limited (ASX: TNE)
The Technology One share price has been on an upward trajectory over the last 10 years. This has been driven by its evolution from a small enterprise solutions company to one of the leading players in the ANZ market. The strong earnings growth that this has generated has led to its shares providing investors with an average total return of 27% per annum over the decade. This means that $20,000 invested in its shares would be worth $220,000 today.
