How to turn $20,000 into $240,000 in 10 years with ASX shares

A $20,000 investment into Codan Limited (ASX:CDA) and these ASX shares 10 years ago would have made you rich…
The post How to turn $20,000 into $240,000 in 10 years with ASX shares appeared first on The Motley Fool Australia. –

piles of australian $100 notes, wealth, get rich, rich australian

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.

On this occasion, I have picked out the three ASX shares that are listed below:

Codan Limited (ASX: CDA)

This electronic product company’s shares have been a great place to invest your money over the last decade. This has particularly been the case over the last five years thanks to the surging gold price and its industry leading metal and gold detectors. Sales have been growing very strongly for its Minelab business, underpinning stellar earnings and dividend growth. Positively, this is continuing in FY 2021 and is being bolstered further by a series of acquisitions. These acquisitions are diversifying its offering, which could prove very important when the gold price eventually weakens and demand for detectors softens. For now, over the last 10 years, Codan’s shares have generated an average total return of 28.3% per annum. This would have turned a $20,000 investment into $242,000.

Sydney Airport Holdings Pty Ltd (ASX: SYD)

This airport operator’s shares may be trading well below their highs due to the impact of the pandemic on the travel industry, but this hasn’t diminished their market-beating returns over the last 10 years. Thanks to its position as the busiest airport in Australia and the global tourism boom, Sydney Airport was growing at a consistently solid rate until COVID-19 hit. This has led to its shares providing investors with an average total return of 12.35% per annum since 2011. This would have turned a $20,000 investment into almost $64,000.

Technology One Limited (ASX: TNE)

This enterprise solutions company’s shares have been another great place to invest over the last decade. During this time the company has gone from being a relatively small player to one of the largest in the region. In addition to this, its shift to a software-as-a-service business model has underpinned strong growth in its recurring revenues in recent years. This has gone down well with investors and positioned it well for the future. All in all, this has led to its shares generating an average total return of 26.8% per annum over the last decade. This means a $20,000 investment in its shares 10 years ago would be worth $215,000 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.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post How to turn $20,000 into $240,000 in 10 years with ASX shares appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!