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:
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CSL Limited (ASX: CSL)
The CSL share price has generated strong returns for investors over the last decade. This has been driven by consistently solid profit growth underpinned by strong demand for its immunoglobulins, its high level of investment in research and development, and successful acquisitions. Over the period, the company's shares have provided a total return of 23.7% per annum, which would have turned a $20,000 investment in 2012 into almost $170,000 today.
Goodman Group (ASX: GMG)
Thanks to the expert positioning of this integrated industrial property company's portfolio to in-demand areas such as ecommerce and logistics, Goodman has been a market beater over the last 10 years. During this time, Goodman's shares have delivered a total return of 21.8% per annum. This means that if you would have invested $20,000 into its shares 10 years ago, it would now be worth almost $145,000.
SEEK Limited (ASX: SEK)
This job listings giant has been a great place to invest over the last decade. Thanks to its domination of the local market and its growing international operations, SEEK has delivered solid revenue and earnings growth over the period in question. This has ultimately led to the company's shares generating a total return of 17.3% per annum since 2012. Which would have turned $20,000 into just under $100,000.
