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 10 years ago would be worth today.
This time around I have picked out the three shares that are listed below:
CSL Limited (ASX: CSL)
The CSL share price has been an impressive performer over the last 10 years. This has been driven by the biotherapeutics company's successful research and development program and the expansion of its plasma collection network. The addition of the Seqirus influenza business has also given its overall performance a boost. Over the period CSL's shares have generated an average total return of 23.4% per annum. This would have turned a $20,000 investment into almost $165,000.
Domino's Pizza Enterprises Ltd (ASX: DMP)
This pizza chain operator has proven to be a great place to invest over the last decade. During this time Domino's Pizza Enterprises has expanded internationally and become the world's largest franchisor of Domino's Pizza. This has helped Domino's grow both its earnings and dividend at a very strong rate, which has led to its shares generating a total average return of 27.7% per annum over the last 10 years. This means that a $20,000 investment in its shares in 2010, would now have grown to be worth $230,000 today.
Sydney Airport Holdings Pty Ltd (ASX: SYD)
The tourism boom and Sydney Airport's position has the main gateway into Australia, has led to this airport operator's shares providing market beating returns over the last decade. Over the period Sydney Airport has generated an average total return of 11.6% per annum. This would have turned a $20,000 investment into $60,000.
