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 two ASX shares that are listed below:
Aristocrat Leisure Limited (ASX: ALL)
This gaming technology company has made its shareholders smile over the last 10 years. During this time, Aristocrat's shares have smashed the market thanks to its strong earnings growth which has been driven by its leadership position in the poker machine market and expansion into digital gaming through several major acquisitions.
And with these businesses continuing to perform strongly and management intending to expand into the emerging real money gaming market, shareholders will no doubt be hoping for more of the same over the next decade.
During the last decade, Aristocrat's shares have generated an average total return of 30.4% per annum. This would have turned a $20,000 investment into ~$285,000.
Domino's Pizza Enterprises Ltd (ASX: DMP)
This pizza chain operator has been one of the best performers on the Australian share market over the last decade. This has been driven by the company's aggressive expansion in Australia and internationally, which has underpinned stellar earnings and sales growth.
A decade ago, the company was operating approximately 1,000 stores. Last month, it revealed that it opened over five new stores a week in FY 2022, bringing its total to 3,387 stores. But management doesn't expect to stop there. Not a chance! It is now targeting 7,250 stores by 2033. This could mean further strong gains over the next decade for investors if management executes this expansion successful.
As for the last decade, Domino's shares have generated an average total return of 22.2% per annum. This would have turned a $20,000 investment into just under $150,000.
