I’m a big fan of buy and hold investing and believe it is one of the best ways for investors to grow their wealth.
To demonstrate how successful it can be, every so often I like to pick out a number of popular ASX shares to see how much a single $20,000 investment ten years ago would be worth today.
Today I have picked out the three shares found below.
Although the Domino’s Pizza Enterprises Ltd (ASX: DMP) share price is down by around a third from its all-time high, the pizza chain operator has still been an incredible place to put your money over the last decade. Over this period Domino’s Pizza Enterprises has evolved from being a small local operation to a vast multi-country operation with thousands of restaurants. Furthermore, it is now the largest franchisee for the Domino’s Pizza brand in the world. This has led to its shares generating an average total return of 29.7% per annum. Which would have turned a $20,000 investment into $269,400.
The Sydney Airport Holdings Pty Ltd (ASX: SYD) share price has been a strong performer over the last 10 years thanks to a combination of the tourism boom and its position as the main gateway into Australia. In addition to this, Sydney Airport’s shares have benefited from increasing demand for bond proxies over the last few years as interest rates have fallen. This has led to the airport operator’s shares providing a total return of 16.25% per annum over the last decade. This would have turned a $20,000 investment into $90,150.
Investors that bought Technology One Limited (ASX: TNE) shares 10 years ago and held onto them will no doubt be smiling today. Strong demand for its services and the emergence of its SaaS business have led to robust earnings growth over the period. This has led to the enterprise software company’s shares generating a total return of 27.65% per annum over the last 10 years. If you had invested $20,000 into its shares it would be worth $230,000 today.
The post How you can turn $20k into over $250k in 10 years with ASX shares appeared first on Motley Fool Australia.
But that was then but this is now. So which shares could generate outsized returns over the next 10 years? My money would be on these top growth shares which have significant potential.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Sydney Airport Holdings Limited. The Motley Fool Australia has recommended Domino's Pizza Enterprises Limited. 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