These shares could have made you very wealthy…
The post How to turn $20,000 into $250,000 in 10 years with ASX shares appeared first on The Motley Fool Australia. –
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)
This auto listings company has gone from strength to strength over the last decade. Gone are the days when consumers would look through newspapers for cars to buy. Now they grab their phone or laptop and look online. This shift to online auto listings has led to Carsales delivering consistently strong earnings growth over the period. As has the company’s successful expansion internationally, which continued this year with its entry into the US market. This has ultimately led to its shares generating an average total return of 18.6% per annum over the last 10 years. This would have turned a $20,000 investment into $110,000.
Corporate Travel Management Ltd (ASX: CTD)
This corporate travel booking company’s shares may be trading well below their record high because of the pandemic, but that hasn’t stopped them from outperforming the market materially over the last decade. This has been driven by its very strong revenue and earnings growth over the period. For example, in FY 2011, Corporate Travel Management reported revenue of $64.9 million and profit after tax of $11.8 million. Analysts at Citi are now forecasting a profit after tax of $46.9 million in FY 2022 and then $100 million in FY 2023. Which I feel demonstrates just how far the company has come. Given its strong growth, it won’t be a surprise to learn that its shares have given investors a total return of 29.7% per annum over the period. This would have turned a $20,000 investment into just over $269,400.
Another market beater over the last 10 years has been the ResMed share price. This has been driven by increasing demand for the sleep treatment focused medical device company’s world class portfolio. And with an estimated 1 billion people suffering from sleep apnoea globally, the majority undiagnosed, ResMed still has a long runway for growth. Over the last decade, ResMed’s shares have generated an average total return of 27.4% per annum. This would have turned a $20,000 investment into ~$225,500 today.
The post How to turn $20,000 into $250,000 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 nearly 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 May 24th 2021
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 owns shares of and has recommended Corporate Travel Management Limited. 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 Bruce Jackson.