$20,000 invested in these ASX 200 shares 10 years ago is worth…

Long term shareholders of these shares will be laughing all the way to the bank.

| More on:
A young well-dressed couple at a luxury resort celebrate successful life choices.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

I'm a big fan of buy and hold investing and believe it is one of the best ways to grow your wealth.

This is because it allows investors to take advantage of the power of compounding. This is what happens when you generate returns on top of returns.

To demonstrate just how successful this investment strategy can be with ASX 200 shares, I like to look at how much a single $20,000 investment in certain shares 10 years ago would be worth today.

Let's now see how investments in these three shares have fared during this time:

Cochlear Limited (ASX: COH)

It is fair to say that this manufacturer and distributor of cochlear implantable devices for the hearing-impaired has been a great ASX 200 share to own over the last decade.

Due to its industry-leading position, sizeable investment in research and development, its wide distribution network, and ageing populations across the globe, Cochlear has delivered consistently strong sales and earnings growth.

This has led to Cochlear's shares providing investors with an average total return of 19.4% per annum over the last 10 years. This would have turned a $20,000 investment into almost ~$120,000 today.

NextDC Ltd (ASX: NXT)

Another ASX 200 share that has been lighting up the ASX boards over the past decade has been data centre operator, NextDC.

Thanks to strong demand for capacity in its data centres due to the structural shift to the cloud, and now the artificial intelligence boom, its revenue and operating earnings have been growing at a rapid rate.

This has led to the ASX 200 share outperforming the market since 2014 with an average total return of 26.1% per annum. This means that a $20,000 investment in NextDC shares back then would have grown to be worth just over $200,000 today.

Northern Star Resources Ltd (ASX: NST)

Finally, this gold mining giant has been a star performer on the ASX 200 over the past 10 years.

This has been underpinned by the company's transformation from a relatively small gold miner to one of the largest in the industry. A booming gold price has also been very helpful in recent times, driving its shares 30% higher over the last six months.

This has led to the company's shares smashing the market return since 2014. Over the period, Northern Star's shares have generated an average return of 30.5% per annum. This would have turned a $20,000 investment into almost $290,000 today.

Motley Fool contributor James Mickleboro has positions in Nextdc. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Cochlear. The Motley Fool Australia has recommended Cochlear. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

two business men sit across from each other at a negotiating table. with a large window in the background.
Mergers & Acquisitions

Deal or no deal? Why the BHP share price is crumbling today

The BHP share price is under pressure following the mining giant's third takeover bid for Anglo American.

Read more »

A man in a supermarket strikes an unlikely pose while pushing a trolley, lifting both legs sideways off the ground and looking mildly rattled with a wide-mouthed expression.
Consumer Staples & Discretionary Shares

Here's the Coles share price I would buy at

I'd be happy to buy Coles... at the right price.

Read more »

Business woman watching stocks and trends while thinking
Share Market News

5 things to watch on the ASX 200 on Thursday

Here are a few things for Australian investors to look out for today.

Read more »

Man in yellow hard hat looks through binoculars as man in white hard hat stands behind him and points.
Mergers & Acquisitions

BHP shares on watch after new $74b Anglo American takeover offer rejected

Is it third time lucky for the mining giant?

Read more »

A young woman makes an online travel booking as she sits on some steps with her suitcase next to her.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX shares snatched defeat from the jaws of victory today.

Read more »

Investor sitting in front of multiple screens watching share prices
Broker Notes

Top brokers name 3 ASX shares to buy today

Here's what brokers are recommending as buys this week.

Read more »

Two smiling work colleagues discuss an investment or business plan at their office.
Share Gainers

Why Droneshield, TechnologyOne, Telix, and Webjet shares are rising today

These shares are having a great session. But why?

Read more »

A young male investor wearing a white business shirt screams in frustration with his hands grasping his hair after ASX 200 shares fell rapidly today and appear to be heading into a stock market crash
Share Fallers

Why Eagers Automotive, Inghams, Patriot Battery Metals, and Wildcat shares are sinking

These shares are having a tough time on hump day. But why?

Read more »