I’m a very big fan of buy and hold investing and believe it is the best way for investors to grow their wealth.
To demonstrate how successful it can be, 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 ASX shares that are listed below:
ASX Ltd (ASX: ASX)
The operator of the Australian stock exchange has been a great place to invest your money over the last decade. Thanks to its near monopoly on share trading in Australia, ASX Ltd has been able to grow its earnings and dividends at a consistently solid rate over the period. This has ultimately led to the ASX Ltd share price generating an average total return of 13.8% per annum since 2010. This would have turned a $20,000 investment in its shares into almost $73,000.
Nanosonics Ltd (ASX: NAN)
If you invested $20,000 into the shares of this infection prevention company in 2010, you would be sitting on a small fortune today. Thanks to the success of Nanosonics’ trophon EPR disinfection system for ultrasound probes, the company’s sales have been growing at a rapid rate over the last decade. This has led to Nanosonics shares generating an average total return of 27.2% per annum. This means that investment would now be worth an incredible $220,000.
Sonic Healthcare Limited (ASX: SHL)
A winning combination of organic and acquisitive growth led to this international medical diagnostics company growing its earnings and dividends at a solid rate over the last 10 years. This has resulted in the Sonic Healthcare share price smashing the market over the period. Its shares have generated an average total return of 14.3% per annum since 2010. This would have turned $20,000 into over $76,000 today.
Legendary stock picker names 5 cheap stocks to buy right now
Motley Fool resident tech stock expert Dr. Anirban Mahanti has stumbled upon five stocks he believes could be some of the greatest discoveries of his investing career.
These little-known ASX stocks are growing like gangbusters, yet you can buy them today for less than $5 a share. Click here to learn more.
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 Nanosonics Limited. The Motley Fool Australia has recommended Nanosonics Limited and Sonic Healthcare 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.
- Why the Splitit share price is zooming 20% higher today – August 5, 2020 10:37am
- Qantas share price lower after Virgin Australia announces future plans – August 5, 2020 10:08am
- Telstra share price on watch after major asset sale announcement – August 5, 2020 9:17am