How to turn $20,000 into $200,000 in 10 years with ASX shares

If you had invested $20,000 into CSL Limited (ASX:CSL) and these ASX shares in 2010 you would have made a small fortune…

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

I'm a big advocate of buy and hold investing and firmly believe it is the best way for investors to grow their wealth.

To demonstrate how successful it can be, every so often 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.

With that in mind, here's how $20,000 investments in these ASX shares in 2010 would have fared:

CSL Limited (ASX: CSL)

This biotherapeutics company's shares have been consistently strong performers over the last decade. This strong form has been driven by the increasing demand for its immunoglobulins, the acquisitions of the Novartis influenza vaccines business, and its high level of investment in research and development activities. These have combined to underpin strong sales and earnings growth over period, leading to CSL shares generating an average total return of 24.9% per annum. This would have turned a $20,000 investment into almost $185,000.

Evolution Mining Ltd (ASX: EVN)

Historically, gold miners are not great long term investments. But that hasn't been the case over the last decade due to falling rates and a rising gold price. Combined with strong production and acquisitions, this has led to Evolution Mining shares beating the market since 2010. Over that time its shares have generated a 13.5% per annum total return. This means that a $20,000 investment would now be worth $71,000.

REA Group Limited (ASX: REA)

Thanks to the shift to online listings and the emergence of its realestate.com.au website as the dominant player in the Australian housing market, REA Group has been able to grow its earnings at a strong rate over the last 10 years. This has led to the property listings company's shares smashing the market over the period with an impressive 26.15% per annum total return. Based on this, a $20,000 investment in REA Group's shares in 2010 would be worth $204,000 today.

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 recommended REA Group 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.

More on How to invest

Man pointing an upward line on a bar graph symbolising a rising share price.
How to invest

How to invest when the ASX hits a record high

Worried about buying at today's prices? Here's why you shouldn't be concerned.

Read more »

A man wearing glasses sits back in his desk chair with his hands behind his head staring smiling at his computer screens as the ASX share prices keep rising
How to invest

Lessons from a self-made ASX millionaire

Here's how he did it.

Read more »

A couple cheers as they sit on their lounge looking at their laptop and reading about the rising Redbubble share price
How to invest

$20,000 in savings? Here's how to target $1,000 of passive income each month

This could be the easiest way to build a meaningful passive income from the share market.

Read more »

Three happy office workers cheer as they read about good financial news on a laptop.
How to invest

The 3 rules new ASX share investors should always follow

These rules could help you generate wealth in the share market.

Read more »

Person holding Australian dollar notes, symbolising dividends.
How to invest

How to build a $1,500 monthly income stream with ASX dividend shares

It isn't as hard as you think to build a monthly income stream on the share market.

Read more »

A smiling woman sits in a cafe reading a story on her phone about Rio Tinto and drinking a coffee with a laptop open in front of her.
How to invest

How to start your ASX share portfolio with just $1,000

Investing doesn't need to be hard. Here's an easy way to start.

Read more »

Happy young woman saving money in a piggy bank.
How to invest

How I'd invest $250,000 in Australian dividend stocks to never worry about money again

Here are a number of stocks that could be top options for income investors with money to put into the…

Read more »

Warren Buffett
How to invest

5 easy steps to invest like Warren Buffett with ASX shares

It isn't as hard as you might think to invest like the Oracle of Omaha.

Read more »