How to turn $20,000 into $350,000 in 10 years with ASX shares

A $20,000 investment in Domino's Pizza Enterprises Ltd (ASX:DMP) shares 10 years ago would have made you a small fortune…

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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:

Codan Limited (ASX: CDA)

It certainly hasn't been a smooth ride, but this electronic products company's shares have been strong performers over the last decade. The majority of its gains have come in the last few years after low interest rates sent the gold price hurtling higher, underpinning very strong demand for its leading metal detectors. Overall, the Codan share price has generated an average total return of 18.6% per annum during the last 10 years. This would have turned a $20,000 investment into $164,000.

Domino's Pizza Enterprises Ltd (ASX: DMP)

Domino's has been growing its sales and earnings at an above-average rate over the last decade. This has been driven by the pizza chain operator's highly successful focus on technology, such as mobile ordering, and its expansion across Australia, Japan, and several European countries. This has led to Domino's shares delivering investors an average total return of 33% per annum. This means that if you had invested $20,000 into its shares 10 years ago, your investment would now be worth just under $350,000.

Ramsay Health Care Limited (ASX: RHC)

This leading private healthcare company has successfully expanded its operations over the last 10 years via acquisitions and developments. It now has a total of 480 facilities across 11 countries, making it one of the largest and most diverse private healthcare companies in the world. Combined with growing demand for healthcare services due to ageing populations and increasing chronic disease, this has underpinned solid earnings growth over the last decade. Which has led to its shares generating a market-beating average total return of 17% per annum. This would have turned a $20,000 investment in 2010 into over $96,000 today.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Domino's Pizza Enterprises Limited and Ramsay Health Care 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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