I’m a big fan of buy and hold investing and believe it is the best way for investors to grow their wealth.
To demonstrate how successful it can be, 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:
Carsales.Com Ltd (ASX: CAR)
Thanks to the structural shift online for auto listings, its expansion internationally, and acquisitions, Carsales has been growing at a solid rate over the last decade. This has underpinned strong returns for investors, with its shares averaging a total return of 16.2% per annum since 2012. This means that if you had invested $20,000 into Carsales’ shares 10 years ago, it would be worth $90,000 today.
Goodman Group (ASX: GMG)
Another market beater during the last 10 years has been this integrated commercial and industrial property company. This has been driven by Goodman’s highly successful focus on investing in and developing high quality industrial properties in strategic locations close to large urban populations and in and around major gateway cities globally. Over the period, the company’s shares have generated an average total annual return of 20.8% for investors. This would have turned a $20,000 investment into $130,000 today.
ResMed Inc. (ASX: RMD)
Finally, ResMed shares have been a great place to invest over the last decade. This sleep treatment company’s shares have beaten the market thanks to its consistently solid sales and earnings growth over the period. ResMed’s growth has been driven by its industry-leading solutions and the growing awareness and prevalence of sleep disorders. Over the last 10 years, ResMed’s shares have generated an average total return of 24.7% per annum. This means that an investment of $20,000 into its shares in 2012 would have grown to be worth~$180,000 this year.
The post How to turn $20,000 into $180,000 in 10 years with ASX shares appeared first on The Motley Fool Australia.
Should you invest $1,000 in ResMed right now?
Before you consider ResMed, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and ResMed wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of January 13th 2022
More reading
- Analysts name 2 ASX 200 shares to buy after the selloff
- 3 ‘disruptive’ ASX companies Aussies now can’t live without
- ASX shares paid out a record $98b in dividends in the 12 months to March. Which are the star performers?
- ‘We see value’ in this dividend ASX share: expert
- Why this broker says ResMed is an ASX 200 share to buy
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 recommended ResMed. The Motley Fool Australia has recommended ResMed Inc. and carsales.com Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
from The Motley Fool Australia https://ift.tt/fcm8Xhb
Leave a Reply