It's no secret that I'm a big fan of buy and hold investing. In fact, I believe it is the best way for investors to grow their wealth.
In light of this, every so often I like to demonstrate how successful this investment strategy can be by picking out a number of popular ASX shares to see how much a single $20,000 investment 10 years ago would be worth today.
And while you might think that you would need to unearth some rising stars to generate big returns, that's not actually the case.
For example, listed below are three ASX shares that have comprehensively beaten the market and were no secret to investors back in 2013. Let's see how investments in these shares fared:
Goodman Group (ASX: GMG)
This integrated industrial property company's strategy of building sustainable properties that are close to consumers and provide essential infrastructure for the digital economy has been a huge success. Demand has been so strong, that Goodman has delivered stellar earnings growth over the last decade. This has ultimately led to this ASX share generating an average total return of 17.23% per annum since 2013. This would have seen a $20,000 investment turn into almost $100,000 over the period.
Macquarie Group Ltd (ASX: MQG)
This investment bank has been a strong performer for investors over the last decade. During this time, Macquarie's shares have smashed the market with a total average return of 19.25% per annum. This would have turned a $20,000 investment 10 years ago into almost $120,000 today.
ResMed Inc. (ASX: RMD)
Thanks to the growing awareness of sleep disorders and this medical device company's industry-leading solutions, it has reported consistently solid sales and earnings growth over the 2010s and now into the 2020s. This has led to this ASX share providing investors with an average total return of 22.26% per annum since 2013. This means that a $20,000 investment back then would have grown to be worth almost $150,000 now.
