I'm a 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:
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Corporate Travel Management Ltd (ASX: CTD)
While it may not have been a smooth ride, particularly during the pandemic, this corporate travel booker's shares have smashed the market over the last 10 years. This has been driven by the company's highly successful growth through acquisition strategy and its focus on technology. This has underpinned a significant increase in its revenue and earnings over the period. Over the 10 years, Corporate Travel Management's shares have generated a total return of 32.4% per annum for investors. This would have turned a $20,000 investment into ~$330,000.
Goodman Group (ASX: GMG)
This integrated commercial and industrial property company has been a great place to invest over the last 10 years. This is thanks to Goodman's highly successful focus on investing in and developing high quality industrial properties in strategic locations close to large urban populations and in and around major gateway cities globally. This has underpinned strong earnings and distribution growth, leading to its shares generating a total average return of 24.2% per annum since this time in 2011. This would have turned a $20,000 investment into ~$175,000.
Premier Investments Limited (ASX: PMV)
The Premier Investments share price has been a market beater over the last decade. This has been driven largely by the successful expansion of its Smiggle brand internationally and the strong growth of the Peter Alexander brand. During this time, the retail conglomerate's shares have generated an average total return of 20.7% per annum. This would have turned an investment of $20,000 in the company's shares in 2011 into $131,000 today.
