I'm a big 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 shares, I like to see how much a single $10,000 investment in certain ASX 200 shares 10 years ago would be worth today.
Let's see how investments in these shares have fared during this time:
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Breville Group Ltd (ASX: BRG)
The first ASX 200 share that has delivered the goods for investors is Breville.
It is one of the world's leading appliance manufacturers and the owner of brands such as Breville, Sage, Kambrook, Baratza, and LELIT.
Breville has been growing its sales and earnings at a solid rate over the past decade thanks to its investment in research and development, global expansion, and acquisitions in the at-home coffee market.
This has led to Breville's shares generating strong returns over the past decade.
They have achieved an average total return of 14.1% per annum since 2016, which means that a $10,000 investment would have grown to be worth over $37,000 today.
NextDC Ltd (ASX: NXT)
Another ASX 200 share that has achieved market-beating returns over the past decade is NextDC.
It is an Australian technology company with a focus on innovative data centre outsourcing solutions, connectivity services, and infrastructure management software.
The data centre market has been a great place to be. Thanks to the shift to the cloud and the artificial intelligence (AI) megatrend, demand for capacity in its centres has been insatiable. This has led to NextDC's revenue and operating earnings growing at a rapid rate.
Since 2016, its shares have generated an average return of 17.6% per annum. This means that a $10,000 investment in NextDC shares back then would have grown to be worth over $50,000 today.
TechnologyOne Ltd (ASX: TNE)
Another ASX 200 share that has beaten the market over the past 10 years is enterprise software provider TechnologyOne.
Thanks to its successful transition to a software-as-a-service business model, TechnologyOne has been growing its annual recurring revenue (ARR) and earnings at a consistently strong rate for many years.
And with management confident it can double in size every five years, its shares have been popular with Aussie investors.
This has led to TechnologyOne shares delivering a total average return of 19.1% per annum. This would have turn a $10,000 investment in 2016 into over $57,000 today.
