Iâm a big advocate of buy and hold investing and believe it is the best way for investors to grow their wealth.
In light of this, to demonstrate how successful it can be, I occasionally like to pick out a number of popular ASX 200 shares to see how much a single $20,000 investment 10 years ago would be worth now.
This time around I have picked out the two ASX 200 shares that are listed below:
Fortescue Metals Group Limited (ASX: FMG)
The resources sector can be a difficult place to invest over long periods because of the ups and downs of mining cycles. But thanks largely to this iron ore minerâs strong operating performance and favourable commodity prices over the last three years, the Fortescue share price has charged higher and higher.
Combined with some big dividend payments, this has led to the companyâs shares generating very strong returns for investors. In fact, over the last 10 years, Fortescueâs shares have provided investors with an average total return of 20.26% per annum. This would have turned a $20,000 investment in 2013 into over $125,000 now.
ResMed Inc. (ASX: RMD)
Another ASX 200 share that provided investors with market-beating returns over the last decade is ResMed. It is a sleep treatment focused medical device company which provides industry-leading solutions for sleep apnoea and chronic obstructive pulmonary disease sufferers.
Thanks to the growing awareness of these disorders, demand has been increasing strongly for ResMedâs products over the last decade. This has led to consistently solid sales and earnings growth, which has driven its shares higher. So much so, ResMedâs shares have generated an average total return of 22.94% since 2013. This would have turned a $20,000 investment in its shares into almost $160,000 today.
The post Guess how much a $20k investment in these ASX 200 shares in 2013 is worth now appeared first on The Motley Fool Australia.
Despite what the ‘experts’ may say…
You may have heard some ‘experts’ tell you stock picking is best left to the ‘big boys’. That everyday investors should stay away if we know what’s good for us.
However, for anyone who loves the idea of proving these ‘experts’ dead wrong, then you may want to check this out… In fact…
I think 5 years from now, you’ll probably wish you’d grabbed these stocks.
Get all the details here.
See The 5 Stocks
*Returns as of January 5 2023
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More reading
- Fortescue share price bulls vs bears: Which will prevail in 2023?
- My 3 top-performing ASX shares of 2022, and why I’m still buying 2 of them for 2023
- 3 defining moments for Fortescue shares in 2022
- 3 of the safest ASX dividend shares on Earth
- 2 ASX 200 shares I’m never selling
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ResMed. The Motley Fool Australia has positions in and has recommended ResMed. 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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