Australia Markets open in 4 hrs 3 mins

How to become rich by investing in ASX shares

James Mickleboro
Jackpot Money Rain

I’m a big advocate of buy and hold investing and believe it is one of the best ways to grow your wealth over the long term.

To demonstrate how successful it can be, I’ve picked out a number of popular ASX shares to see how much a $20,000 investment ten years ago would be worth today.

They are as follows:

Although the Blackmores Limited (ASX: BKL) share price is down almost 50% from its 52-week high, the health supplements company has still been one of the best buy and hold investments on the local market thanks to strong demand for its products in China. Over the last decade its shares have generated an average total return of 22.5% per annum. This means a $20,000 investment ten years ago would now be worth a touch over $152,000.

The ResMed Inc. (ASX: RMD) share price has been a strong performer over the last decade thanks to increasing demand for its leading medical device products in a growing sleep treatment market. This has led to an average total return of 19.1% per annum, which would have turned a $20,000 investment into $115,000.

Thanks largely to the shift to online travel booking and the growing popularity of its numerous brands, Webjet Limited (ASX: WEB) shares have been amongst the best performers on the Australian share market over the last ten years. During this time Webjet’s shares have provided an average total return of 31.5% per annum, making a $20,000 investment worth just over $309,000 today.

A series of successful investments in the likes of hardware giant Bunnings and Coles Group Ltd (ASX: COL) and a generous dividend policy means that Wesfarmers Ltd (ASX: WES) shares have provided shareholders with an average total return of 12% per annum. This would have turned a $20,000 investment into just over $62,000.

Looking for the next Webjet? Then check out these quality growth shares that have just been rated as buys and tipped to provide strong returns over the long term.

Our Top 3 Blue Chip Shares for 2019 – NOW AVAILABLE!

You’re invited! For a limited time, The Motley Fool Australia is giving away an urgent new investment report detailing our 3 TOP BLUE CHIP SHARES to own in 2019.

So if you like trustworthy, stable, high-performing companies that pay fat fully franked dividends – we’ve got you covered!

Stock #1 is a beloved old Australian company turning its attention to high-margin businesses... and rapidly returning cash to shareholders with its hefty dividend...

While Stock #2 is an online powerhouse that’s rapidly gaining market share all around the globe... poised for years (or even decades) of tremendous growth...

Even better, Stock #3 offers a whopping 6.5% grossed-up dividend! Which beats the rates on term deposits right out of the water – and offers the potential for capital gains, too.

You can discover all three shares inside our new report right now. To scoop up your FREE copy, simply click the link below right now. But you will want to hurry – this free report is available for a LIMITED TIME ONLY!


More reading

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Blackmores Limited, COLESGROUP DEF SET, and Wesfarmers Limited. The Motley Fool Australia has recommended ResMed Inc. and Webjet Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2019