For many Aussies, doubling their money is the dream outcome when investing in the share market.
While there is no guaranteed timeline or formula, history shows that patient investors who stick to quality can give themselves every chance of achieving it.
So, how long could it take to double your money — and what's the smartest way to go about it?
The rule of 72
A simple way to estimate how long it will take your investment to double is the rule of 72.
For this rule, you divide 72 by your expected annual return to find out how long it would take.
For example, if your portfolio returns 8% a year, your money doubles in around nine years. If it returns 10%, it takes about seven years.
That's the power of compounding — your returns generate more returns, creating a snowball effect over time.
Focus on quality
It might be tempting to chase risky penny stocks in the hope of doubling your money quickly, but history suggests a better strategy is buying and holding quality businesses.
On the ASX, shares like ResMed Inc (ASX: RMD), TechnologyOne Ltd (ASX: TNE), and Lovisa Holdings Ltd. (ASX: LOV) have all rewarded patient shareholders with compounding returns that comfortably doubled their investments over the long haul.
For investors who prefer diversification, exchange-traded funds (ETFs) such as the iShares S&P 500 ETF (ASX: IVV) or the Betashares Nasdaq 100 ETF (ASX: NDQ) provide exposure to global leaders like Apple (NASDAQ: AAPL), Nvidia (NASDAQ: NVDA), and Walmart (NYSE: WMT) — companies with proven track records of wealth creation.
Buying and hold these types of shares or ETFs could set you on a path to doubling your money.
Patience pays
Markets won't rise in a straight line. Volatility is part of the journey, and even the best shares go through periods where their share prices fall. The key is staying invested and resisting the urge to sell at the first sign of trouble.
Over decades, investors who stick with their strategy and reinvest dividends are the ones most likely to see their money double — and then maybe even double again.
Foolish takeaway
Doubling your money in the ASX share market isn't about gambling on short-term trades. It is about compounding, quality, and time. By focusing on high-quality ASX shares and ETFs, and holding for the long haul, investors can turn today's savings into tomorrow's wealth. The secret isn't speed — it is patience.
