What happens if you invest $10,000 in ASX shares and leave it alone for 20 years?

Most investors spend a lot of time thinking about when to buy. Far fewer think about what happens if they simply don’t sell.

It is tempting to check your ASX share portfolio constantly, react to headlines, or try to time market cycles. But some of the most powerful wealth creation stories come from doing very little at all.

So, what might that look like with $10,000?

Aiming for a 10% return

Over very long periods, share markets have delivered average annual returns in the high single digits to low double digits. A 10% per annum return is not guaranteed in any given year, but it is broadly in line with long-term historical averages.

On the ASX, this type of return could potentially be achieved by owning high-quality ASX shares such as Goodman Group (ASX: GMG), ResMed Inc. (ASX: RMD), or REA Group Ltd (ASX: REA), all of which have strong competitive advantages and global exposure.

Alternatively, broad-based ETFs such as the iShares S&P 500 ETF (ASX: IVV) or the Vanguard MSCI International Shares ETF (ASX: VGS) have historically delivered similar long-term returns by tracking diversified global markets.

The key isn’t chasing short-term spikes. It is staying invested in businesses or funds that can compound earnings over decades.

Compounding with ASX shares over 20 years

Now let’s come back to the original question. If you invested $10,000 and achieved an average return of 10% per year, and left it untouched for 20 years, how much would it be worth?

After 10 years, your investments would grow to be worth approximately $26,000.

Then, after a total of 20 years, your ASX share portfolio would have a market value of approximately $67,000.

That’s without adding another dollar.

The reason is compounding. In the early years, growth feels modest. But as the portfolio gets larger, each 10% gain adds more dollars than the year before. Over two decades, those gains begin to stack up in a meaningful way.

Why most investors don’t see this outcome

The maths is simple. The behaviour is not.

Many investors interrupt compounding by selling during downturns, shifting strategies mid-cycle, or trying to outsmart the market. Even a few poorly timed decisions can dramatically reduce long-term returns.

Leaving an investment alone for 20 years requires patience and confidence in the underlying assets. That means focusing on businesses with durable competitive advantages, strong balance sheets, and long growth runways.

Foolish takeaway

Investing $10,000 and leaving it untouched for 20 years may not sound exciting. But at a 10% average annual return, it could turn into roughly $67,000, without any additional contributions.

The lesson isn’t about predicting the next hot stock. It is about time in the market, not timing the market. For long-term investors, patience can be more powerful than any short-term strategy.

The post What happens if you invest $10,000 in ASX shares and leave it alone for 20 years? appeared first on The Motley Fool Australia.

More reading

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• 3 ASX ETFs for a classic Warren Buffett-style portfolio
• A rare opportunity to buy 1 of Australia’s top shares?
• 3 ASX shares I’d buy and hold through market volatility
• 3 excellent ASX ETFs to buy and hold for 10 years

Motley Fool contributor James Mickleboro has positions in Goodman Group, REA Group, and ResMed. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group, ResMed, and iShares S&P 500 ETF. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended Goodman Group, Vanguard Msci Index International Shares ETF, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.