I’m a big advocate 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.
With that in mind, here’s how $20,000 investments in these ASX shares in 2010 would have fared:
Cochlear Limited (ASX: COH)
Cochlear shares have been a good place to invest over the last decade. Thanks to growing demand for hearing solutions products due to the ageing populations boom, Cochlear has consistently grown its sales and earnings at a solid rate. This has led to the shares of the manufacturer and distributor of cochlear implantable devices for the hearing impaired providing investors with an average total return of 12.3% per annum over the last 10 years. This would have turned a $20,000 investment into ~$64,000 today.
Domino’s Pizza Enterprises Ltd (ASX: DMP)
Over the last 10 years the Domino’s share price has absolutely smashed the market with an average total return of 33% per annum. This outperformance has been underpinned by the pizza chain operator’s store expansion and the ongoing popularity of its pizzas. In 2010 the company had 823 stores and was generating annual sales of $694.3 million. In its recently released FY 2020 results, Domino’s revealed that its store network was now 2,668 stores and its sales had reached $3.27 billion. If you had invested $20,000 into Domino’s shares in 2010, you’d have approximately $350,000 today. The good news is that Domino’s looks like it could be a market beater again over the next 10 years. It is aiming to grow its store network to 5500 stores by 2033.
Goodman Group (ASX: GMG)
Another strong performer over the last decade has been the Goodman Group share price. This integrated commercial and industrial property group owns, develops and manages industrial real estate in 17 countries. Thanks to some smart investments and its exposure to the ecommerce boom through relationships with Amazon and DHL, among others, its shares have generated a total average return of 21.1% per annum since 2010. This would have turned a $20,000 investment into ~$136,000.
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*Returns as of 6/8/2020
More reading
- Domino’s share price gain of 17% in August a good slice of news for shareholders
- Why I would buy these blue chip ASX shares for the long term
- Here are the highlights of this ASX reporting season
- Top brokers name 3 ASX shares to sell next week
- WiseTech and 2 more ASX shares outperforming this earnings season
James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Cochlear Ltd. The Motley Fool Australia has recommended Cochlear Ltd. and 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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