I’m a very 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:
Cleanaway Waste Management Ltd (ASX: CWY)
The Cleanaway share price has been a market beater over the last decade with an average annual return of 11.8%. This has been driven by Cleanaway delivering solid earnings growth over the period and growing into a real force in the waste management industry. This has particularly been the case during the last few years following the successful acquisitions of Toxfree and SKM Recycling. If you had invested $20,000 into its shares in 2010, it would be worth a cool $61,000 today.
Clinuvel Pharmaceuticals Limited (ASX: CUV)
The Clinuvel share price has been a particularly positive performer over the last 10 years. During this time the severe skin disorders-focused biopharmaceutical company’s shares have generated an average total return of 26.9% per annum. The majority of these gains have come in the last few years following the successful development of its lead compound, SCENESSE. This is a drug which is currently treating erythropoietic protoporphyria and could soon be expanded to treat vitiligo. A $20,000 investment into Clinuvel’s shares 10 years ago would be worth a sizeable $217,000 today.
CSL Limited (ASX: CSL)
The CSL share price has certainly not disappointed over the last 10 years. Thanks largely to its high level of investment in research and development, CSL now has an extremely lucrative portfolio of therapies. It also has a growing vaccine business following its acquisition of the Novartis global influenza vaccine segment. Combined, they have underpinned consistently strong sales and earnings growth. This has resulted in CSL’s shares providing investors with an average return of 25.1% per annum over the last decade. Which means that $20,000 invested in its shares in 2010 would now be worth $188,000 today.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of June 30th
More reading
- Is the ANZ, APA or CSL share price a strong buy?
- Looking to start a share portfolio? Here are 3 quality ASX shares to begin with
- Is the CSL share price fairly valued?
- Fund managers have been snapping up Sonic and these ASX 200 stocks
- Why I would buy CSL and these ASX blue chip shares in FY 2021
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 CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. 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 to turn $20,000 into over $200,000 in 10 years with ASX shares appeared first on Motley Fool Australia.
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