I'm a big fan of buy and hold investing and 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.
Let's see how investments in these ASX shares have fared during this time:
Breville Group Ltd (ASX: BRG)
This appliance manufacturer has delivered some big returns over the last decade. This has been driven by Breville's solid sales and earnings growth, which has been underpinned by the company's ongoing investment in research and development, acquisitions, and global expansion. Over the last decade, Breville's shares have achieved an average total return of 11.8% per annum. This would have turned a $20,000 investment into $61,000 today.
NextDC Ltd (ASX: NXT)
Another ASX share that has been a strong performer over the last decade has been data centre operator NextDC. Thanks to the strong demand for data centre services due to the ongoing shift to the cloud, the company has been growing at a consistently solid rate. This has led to NextDC's shares delivering an average total return of 17% per annum. This would have turned a $20,000 investment in 2013 into ~$96,000 today.
ResMed Inc. (ASX: RMD)
Finally, this medical device company has been a great ASX share to own since 2013. Thanks to the growing awareness of sleep disorders and its industry-leading solutions, ResMed has reported strong sales and earnings growth over the period. This has led to its shares providing investors with an average total return of 20.6% per annum over the last decade. This means that a $20,000 investment 10 years ago would have grown to be worth $130,000 now.
Overall, this means that $60,000 invested evenly across these three ASX shares would now be worth almost $290,000.
