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, 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 two ASX shares that are listed below:
Premier Investments Limited (ASX: PMV)
Premier Investments shares have been a great place to invest your money over the last decade. This is thanks to the strong sales and profit growth that have been underpinned by its high quality portfolio of retail brands and its successful investments in other listed companies such as Breville Group Ltd (ASX: BRG).
The stars of the show have arguably been its Peter Alexander and Smiggle brands, which have grown materially over the last decade. And the good news is that management still sees plenty of growth opportunities ahead for the brands.
Overall, Premier Investments shares have provided investors with an average total return of 21.3% per annum over the last 10 years. This would have turned an investment of $20,000 in the company's shares into almost $140,000 today.
Pro Medicus Limited (ASX: PME)
Another ASX share that has smashed the market over the last 10 years is Pro Medicus. It is a leading provider of radiology information systems (RIS), Picture Archiving and Communication Systems (PACS), and advanced visualisation solutions across the globe.
Pleasingly, demand for Pro Medicus' technology continues to increase as healthcare institutions shift away from legacy systems. This has led to many of the largest health institutions in the world signing long-term contracts in recent years. They appear to have been attracted to its best in class system which combine speed, scalability, stability and smarts to help eliminate administrative tasks and workarounds, optimise the efficiency of clinical and administrative staff, and maximise profits.
All in all, the Pro Medicus share price has generated an average annual total return of 68% per annum since this time in 2012. This would have turned a $20,000 investment into a staggering ~$3.6 million.
