How to turn $20,000 into $180,000 in 10 years with ASX shares

These shares have generated strong returns for investors over the last 10 years…

| More on:
Happy young man and woman throwing dividend cash into air in front of orange background

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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:

Carsales.Com Ltd (ASX: CAR)

Thanks to the structural shift online for auto listings, its expansion internationally, and acquisitions, Carsales has been growing at a solid rate over the last decade. This has underpinned strong returns for investors, with its shares averaging a total return of 16.2% per annum since 2012. This means that if you had invested $20,000 into Carsales’ shares 10 years ago, it would be worth $90,000 today.

Goodman Group (ASX: GMG)

Another market beater during the last 10 years has been this integrated commercial and industrial property company. This has been driven by 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. Over the period, the company’s shares have generated an average total annual return of 20.8% for investors. This would have turned a $20,000 investment into $130,000 today.

ResMed Inc. (ASX: RMD)

Finally, ResMed shares have been a great place to invest over the last decade. This sleep treatment company’s shares have beaten the market thanks to its consistently solid sales and earnings growth over the period. ResMed’s growth has been driven by its industry-leading solutions and the growing awareness and prevalence of sleep disorders. Over the last 10 years, ResMed’s shares have generated an average total return of 24.7% per annum. This means that an investment of $20,000 into its shares in 2012 would have grown to be worth~$180,000 this year.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia has recommended ResMed Inc. and carsales.com Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Growth Shares

A man and woman playing video games.
Growth Shares

Why I think it’s time to load up on these 2 ASX shares

2022 looks like a good year for buying assets.

Read more »

A man sees some good news on his phone and gives a little cheer.
Growth Shares

2 excellent ASX growth shares to buy now according to brokers

Check out these excellent ASX growth shares...

Read more »

A man in his 30s holds his computer underneath and operates it with his other hand as he has a look of pleasant surprise on his face as though he is learning something new or finding hidden value in something on the screen.
Growth Shares

Brokers just rated these ASX 200 shares as buys in August

Pinnacle and Domain are two businesses worth investing in, according to experts.

Read more »

A man in his 30s holds his computer underneath and operates it with his other hand as he has a look of pleasant surprise on his face as though he is learning something new or finding hidden value in something on the screen.
Growth Shares

2 stellar ASX 200 shares that brokers rate as buys

Here are two high quality ASX 200 shares...

Read more »

A woman wearing yellow smiles and drinks coffee while on laptop.
Growth Shares

2 excellent ASX growth shares to buy – experts

Analysts rate these growth shares very highly...

Read more »

a man sits at his desk wearing a business shirt and tie and has a hearty laugh at something on his mobile phone.
Growth Shares

Experts name 2 ASX growth shares to buy

Here are two growth shares that could be in the buy zone now...

Read more »

An attractive woman sits at her computer with her chin resting on her hand as she contemplates the WAM Alternative Assets listed investment company as a potential investment
Growth Shares

I rate these top ASX growth shares as buys in August

The iShares S&P 500 ETF is one idea that looks compelling for the long-term.

Read more »

A woman is excited as she reads the latest rumour on her phone.
Growth Shares

Broker names 2 ASX 200 shares to buy in August

These ASX 200 shares could be in the buy zone...

Read more »