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 10 years ago would be worth today.
This time around I have picked out the three ASX shares that are listed below:
Aristocrat Leisure Limited (ASX: ALL)
Aristocrat is a gaming technology company which has been a strong performer over the last decade. This is thanks largely to the popularity of its poker machines and the emergence of its lucrative and fast-growing digital business. Combined, they have underpinned strong earnings growth and market-beating returns for investors. Over the last 10 years its shares have generated an average total annual return of 21.9%. This would have turned a $20,000 investment into $145,000 today.
Domino’s Pizza Enterprises Ltd (ASX: DMP)
Thanks to its successful expansion throughout Australia and in several international markets, this pizza chain operator has been growing its earnings at a very strong rate over the last 10 years. This has led to Domino’s shares generating an average total return of 29.9% per annum over the period. Which means that a $20,000 investment in its shares in June 2010 would now be worth a cool $275,000. The good news for shareholders is that Domino’s is aiming to grow its store footprint materially over the next five years. I believe this could lead to further strong returns over the next decade.
Sydney Airport Holdings Pty Ltd (ASX: SYD)
Despite losing almost a third of its value since hitting its high in December, this airport operator has still been a great place to invest over the last decade. Increasing international tourism from China and the United States and growing ancillary revenues have underpinned solid income and distribution growth since 2010. This has led to Sydney Airport’s shares beating the market with an average total return of 13.1% per annum over the period. This would have turned a $20,000 investment into $68,500 today.
But that was then, what about now? I think the five quality shares recommended below could provide investors with market beating returns over the next decade…
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As of 2/6/2020
More reading
- ASX 200 down 0.35%: UBS upgrades NAB and Westpac, Qantas soars again
- Why Kogan, NAB, Qantas, & Sydney Airport shares are racing higher
- These top ASX dividend shares could be perfect for income investors
- 3 large cap shares beating the ASX 200 this year
- 3 of the best ASX shares to buy with $3,000 right now
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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.
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