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.