The Australian share market can be a great place to grow your wealth. You only need to look at the returns that some ASX 200 shares have generated over the last decade to see this.
For example, listed below are three popular shares that would have turned a $20,000 investment in 2013 into significantly more today. This is all thanks to the magic power of compounding. Here's what you need to know:
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Aristocrat Leisure Limited (ASX: ALL)
This gaming technology company would have been a great portfolio holding over the last decade. This is thanks largely to the popularity of its poker machines and the emergence of its lucrative digital gaming business. They have helped drive consistently strong earnings growth and market-beating returns for investors. For example, over the last 10 years, the ASX 200 share has generated an average total annual return of 26.1%. This would have turned a $20,000 investment into just over $200,000 today.
Codan Limited (ASX: CDA)
Thanks to the popularity of this electronic products company's metal detectors globally and a series of successful acquisitions, Codan has been growing at a strong rate over the last decade. Much to the delight of its shareholders, this has supported returns of 17.6% per annum over the last 10 years, which is almost double the market return over the same period. This would have turned a $20,000 investment in this ASX 200 share into approximately $100,000.
Nanosonics Ltd (ASX: NAN)
This medical device company's recent form may have been a touch underwhelming, but longer-term investors won't be too bothered. Thanks to the strong growth in the installed base of its trophon EPR ultrasound probe disinfection system and the increasing consumable revenues, Nanosonics shares have generated a market-beating average return of 21.2% per annum over the last decade. This would have turned a $20,000 investment in its shares 10 years ago into just under $136,000 today.
