How to turn $20,000 into $650,000 with ASX shares

If you had bought $20,000 worth of Pro Medicus Limited (ASX:PME) shares 10 years ago you would be very wealthy today…

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Arguably one of the best ways to grow your wealth over the long term is through buy and hold investing.

To demonstrate how successful this investment strategy can be, I've picked out a number of popular ASX shares to see how much a single $20,000 investment ten years ago would be worth today.

Here's what I found:

Due to the expansion of its distribution network and increasing demand because of ageing populations, Cochlear Limited (ASX: COH) has delivered exceptionally strong sales and profit growth over the last decade. This has led to the hearing solutions company's shares generating an average total return of 15% per annum over the last 10 years. Which means that anyone that invested $20,000 into its shares a decade ago, would have seen their investment grow to be worth approximately $81,000 today.

Pro Medicus Limited (ASX: PME) is a healthcare technology company which provides a full range of radiology IT software and services to hospitals, imaging centres, and health care groups worldwide. Thanks to the growing popularity of its revolutionary product suite, Pro Medicus has been growing at an astonishing rate over the last decade. Because of this, its shares have been amongst the best performers on the market, generating an average total return of 41.8% per annum over the period. This means a single $20,000 investment in June 2009 would be worth a staggering $657,000 today.

Over the last 10 years SEEK Limited (ASX: SEK) has cemented its position as the job listings leader in Australia and grown its presence significantly in a number of international markets. This has sent its share price surging notably higher, leading to an average total return of 19.2% per annum. This would have turned a $20,000 investment a decade ago into $116,000 today.

The TPG Telecom Ltd (ASX: TPM) share price has been a very strong performer over the last decade. During this time the company has transformed itself from a telco challenger into a leader in the industry. This success has led to the company's shares generating a mouth-watering average total return of 33.7% per annum over the last decade, which would have turned a $20,000 investment into $365,000.

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 and recommends Pro Medicus Ltd. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Cochlear Ltd. The Motley Fool Australia has recommended Cochlear Ltd., Pro Medicus Ltd., and SEEK 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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