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:
Codan Limited (ASX: CDA)
The growing popularity of this electronic products company's metal detectors globally has led to strong sales and profit growth over the last decade. This has particularly been the case over the last few years after falling interest rates sent the gold price to elevated levels. This strong form has been reflected in its share price over the period. It has provided investors with an average total return of 18.6% per annum, which would have turned a $20,000 investment into $110,000.
Goodman Group (ASX: GMG)
Goodman Group is an integrated commercial and industrial property group which owns, develops and manages industrial real estate in 17 countries. This includes warehouses, large scale logistics facilities, and business and office parks. One of the key drivers of growth in recent years has been Goodman Group's exposure to the ecommerce boom. It is benefiting from the structural tailwinds from ecommerce thanks to its direct relationships with some of the biggest operators such as Amazon and Walmart. This has driven strong income and assets under management growth, leading to its shares delivering a total average return of 17.6% per annum since 2010. This would have turned a $20,000 investment into $101,000.
ResMed Inc. (ASX: RMD)
This sleep treatment focused medical device company has been a great place to invest over the last decade. The growing awareness of sleep apnoea and its high quality products and software have underpinned consistently strong earnings growth over this time. This has unsurprisingly led to ResMed's shares outperforming the market by some distance. Its shares have provided investors with an average total return of 21.5% per annum over the last 10 years. This would have turned a $20,000 investment into $140,000.
