How to double your money on the ASX without taking wild risks

Want to double your money? This is the way to do it.

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Key points

  • Doubling your money on the ASX doesn't require high-risk speculation; instead, rely on the power of compounding with an average annual return of 10%, potentially doubling an investment in just over seven years.
  • Invest in resilient growth companies like WiseTech Global and TechnologyOne to steadily compound earnings, while reinvesting dividends from quality shares like Coles Group to accelerate the doubling timeline.
  • The key to success is staying invested even when markets are volatile, ensuring a disciplined approach of buying quality, reinvesting dividends, and allowing time to facilitate wealth growth.

Many investors dream of doubling their money quickly, but chasing speculative plays is often a recipe for disaster.

The good news is that you don't need to gamble on penny stocks to achieve that kind of return.

With patience, consistency, and the right approach, you can realistically aim to double your wealth on the ASX over time. Here's how.

Let compounding work for you

At an average annual return of 10% (which is roughly in line with long-term share market performance, but not guaranteed), your money doubles in just over seven years.

That means a $10,000 investment in ASX shares could become $20,000 in 2032 without you lifting a finger, just as long as you leave it invested.

Which ASX shares should you buy?

Doubling your wealth in the share market isn't about luck, it is about owning shares that can compound earnings year after year.

On the ASX, that might mean investing in the likes of WiseTech Global Ltd (ASX: WTC), which dominates logistics software worldwide, or TechnologyOne Ltd (ASX: TNE), which has delivered more than two decades of consecutive profit growth from its enterprise software.

By owning resilient growth businesses, you give yourself the best chance of riding out market swings and compounding steadily.

Reinvest dividends

Australia is a market where dividends play a huge role in total returns. So, for the early years, it would make sense to reinvest them.

For example, by reinvesting dividends from quality ASX shares like Coles Group Ltd (ASX: COL) or Universal Store Holdings (ASX: UNI), you add to your holdings automatically. Over time, this reinvestment turbocharges compounding and can cut years off your doubling timeline.

Stay invested

The hardest part of doubling your wealth isn't necessarily finding the right stocks, it is staying invested when markets wobble.

Selling at the wrong time can undo years of progress. The best strategy is often the simplest: buy quality, reinvest dividends, and let compounding work for you.

Foolish takeaway

Doubling your money on the ASX doesn't require speculation or luck. By focusing on high-quality growth shares, reinvesting dividends, and letting time do its work, you can realistically aim to double your wealth in around seven years.

It isn't flashy, but it is the kind of approach that has quietly built fortunes for long-term investors again and again.

Motley Fool contributor James Mickleboro has positions in Technology One, Universal Store, and WiseTech Global. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Technology One and WiseTech Global. The Motley Fool Australia has positions in and has recommended Coles Group and WiseTech Global. The Motley Fool Australia has recommended Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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