I'm a fan of buy and hold investing and believe it is one of the best ways to grow your wealth.
To demonstrate just how successful this investment strategy can be with ASX 200 shares, I often like to see how much a single $20,000 investment in certain ASX 200 shares 10 years ago would be worth today.
Let's see how investments in these shares have fared during the past decade:
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Breville Group Ltd (ASX: BRG)
The first ASX 200 share that has smashed the market over the last decade is Breville. It is one of the world's leading kitchen appliance manufacturers.
It has been growing its sales and earnings at a consistently solid rate since 2014. One of the drivers of this has been its ongoing investment in research and development, which ensures that its portfolio is filled to the brim with innovative products.
In addition, its global expansion and earnings accretive acquisitions, particularly in the coffee market, have helped support its growth.
This has allowed Breville's shares to achieve an average total return of 13.8% per annum over the decade. This would have turned a $20,000 investment 10 years ago into almost $73,000 today.
Northern Star Resources Ltd (ASX: NST)
Another market beater has been Northern Star. Over the last 10 years, this gold miner has developed from a reasonably small player into one of the largest in the world.
In addition, with the gold price trading at lofty levels, this has supported its margins as its production increases.
Unsurprisingly, this has done wonders for its shares. So much so, Northern Star is one of the best performing ASX 200 shares over the last decade. During this time, its shares have generated an average total return of 30% per annum. This incredible return means that a $20,000 investment back in 2014 would now be worth a sizeable $275,000.
ResMed Inc. (ASX: RMD)
Another ASX 200 share that has delivered the goods for investors over the past decade is ResMed. It is a leading medical device company with a focus on the growing (and huge) sleep disorder treatment market.
Thanks to the growing awareness of sleep disorders like sleep apnoea and its industry-leading masks and software, ResMed has reported consistently strong sales and earnings growth since 2014.
This has led to its shares providing investors with an average total return of 19.8% per annum over the period. This means that a $20,000 investment in ResMed's shares 10 years ago would have grown to be worth approximately $122,000 now.
Overall, I believe this shows just how rewarding it can be to invest with a long term view.
