I’m a big fan of buy and hold investing and firmly believe it is the best way 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:
Atlas Arteria Group (ASX: ALX)
The Atlas Arteria share price has been a surprisingly strong performer over the last decade. The toll road operator, which was previously known as Macquarie Atlas Roads, has thoroughly beaten the market thanks to the success of its roads and acquisitions. Since this time in 2010, the company’s shares have generated a total average return of 21.99% per annum. This would have turned a $20,000 investment into a massive $146,000.
Jumbo Interactive Ltd (ASX: JIN)
Over the last 10 years Jumbo has become a real force in the lottery industry thanks to the shift to online ticket buying. Back in FY 2011 Jumbo was targeting lottery ticket sales of $75 million to $80 million, whereas today the company is aiming to grow its ticket sales to $1 billion by FY 2022. Unsurprisingly, this meteoric growth has resulted in very strong returns for investors. Despite being down 60% from their 52-week high, since 2010 Jumbo’s shares have provided an average total return of 45.2% per annum. This means $20,000 invested into its shares 10 years ago would be worth almost $850,000 today.
Macquarie Group Ltd (ASX: MQG)
The Macquarie Group Ltd (ASX: MQG) share price has been a consistently strong performer over the last decade. During this time the investment bank has outperformed both the market and the big four banks with an average total return of 14.65% per annum. This would have turned a $20,000 investment in Macquarie’s shares in 2010 into ~$78,500 today. As a comparison, the big four banks have generated an average total return in the range of 4% to 8% per annum over the same period.
We hear it over and over from investors, “I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I’d be sitting on a gold mine!” And it’s true.
And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!
*Extreme Opportunities returns as of June 5th 2020
More reading
- Where to invest $1,000 into ASX shares immediately
- Why the Pointsbet share price is outperforming today
- Why Goldman Sachs’ revenue surge bodes well for the Macquarie Group share price
- Amplia Therapeutics share price up 16% in 2 days as former Macquarie CEO takes substantial stake
- Top brokers pick the latest ASX small cap stocks to buy today
James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Jumbo Interactive Limited. The Motley Fool Australia owns shares of and has recommended Jumbo Interactive Limited and Macquarie Group 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 post How you could have turned $20,000 into $850,000 in 10 years with ASX shares appeared first on Motley Fool Australia.
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