How to build a $100,000 ASX share portfolio in 6 years

The Australian share market could be a great place to grow your wealth.

Key points
  • Starting at zero may be intimidating for new investors
  • In the past, it has been possible to grow your portfolio to $100,000 in just six years
  • This is how you can grow your wealth with ASX shares

Historically, the share market has been a great place to grow your wealth.

For example, the most recent Berkshire Hathaway (NYSE: BRK.B) letter to shareholders reveals that the S&P 500 index has generated an average 9.9% total return per annum since all the way back in 1965.

Importantly, this is largely in line with the returns that ASX shares have generated over the last 30 years.

And while we cannot say whether the same will happen over the next 58 years, I would be disappointed if the returns are not similar. We're also going to base our calculations on this potential return.

A laughing woman wearing a bright yellow suit, black glasses, and a black hat spins dollar bills out of her hands, reflecting dividend earnings.

Image source: Getty Images

Growing your portfolio to $100,000 in six years

Starting from zero and growing your wealth to $100,000 with ASX shares in six years may seem farfetched, but the maths says otherwise.

If you were to invest $1,000 into ASX shares each month for six years and two months and earned the market return, your portfolio would have grown to be worth our target amount.

At that point, investors have the option to use the funds for a purchase or keep the money invested and let compounding work its magic.

Unless it is absolutely necessary to withdraw the funds, I would sooner put them to work in the share market with the aim of growing my wealth further.

For example, if you left this $100,000 invested in ASX shares for a further six years, didn't make any more contributions, and earned the market return, your portfolio would grow to be worth $175,000.

And if you can keep going for a further four years, it would see you crack the $250,000 mark.

That's going from zero to $250,000 in just 16 years. Not bad!

The key is sticking with a plan, buying high quality ASX shares with strong long term outlooks, and letting compounding do the work for you.

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 positions in and has recommended Berkshire Hathaway. The Motley Fool Australia has recommended Berkshire Hathaway. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on How to invest

Five friends enjoying acai bowls at a cafe.
How to invest

How to build a $52,000 passive income with ASX shares

Want your money to work for you? Here's how you could do it.

Read more »

A man thinks very carefully about his money and investments.
How to invest

Cash rate at 4.6%: Here's how I'm investing in ASX shares

Interest rate hikes cut both ways.

Read more »

Businessman planning and analysing investment data.
How to invest

How I'd build a $50,000 ASX share portfolio today

If I were starting fresh today, this is where every dollar would go.

Read more »

Stacks of Australian dollar currency banknotes.
How to invest

How to build a $50,000 passive income from ASX shares

It isn't as hard as you might think to build a passive income.

Read more »

Man holding a calculator with Australian dollar notes, symbolising dividends.
How to invest

How much passive income could I make by investing $500 a month in ASX shares?

Making monthly investments could build into something substantial.

Read more »

Woman and man at work looking at data on a tablet at work.
How to invest

Do you invest in ASX managed funds? Here's something I wish I knew 10 years ago

Don't make the mistake that I did.

Read more »

Smiling woman listening to music and using her phone.
How to invest

5 ASX shares I'd recommend to beginners

These five businesses would give a new investor plenty to learn about how different ASX shares work.

Read more »

Happy young couple riding a motorbike together.
How to invest

How to make $26,000 of passive income from ASX shares

The share market is a great place to make an extra income.

Read more »