How to turn $20,000 into over $250,000 in 10 years with ASX shares

$20,000 investments in Corporate Travel Management Ltd (ASX:CTD) and two other ASX shares in 2010 would have made you wealthy…

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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:

Corporate Travel Management Ltd (ASX: CTD)

Although this corporate travel booking company's shares are down 43% from their all-time high, that hasn't stopped them from smashing the market since 2010. The catalyst for this has been the success of its growth through acquisition strategy and focus on technology. This has underpinned strong sales and earnings growth over the last decade. For example, in FY 2011, its first full year since listing, Corporate Travel Management generated revenue of $46.8 million. Whereas in FY 2020, the company's revenue had grown more than seven times to $350 million. This led to the Corporate Travel Management share price providing investors with a total return of 29.3% per annum over the period, which would have turned a $20,000 investment into just over $261,000.

Reece Ltd (ASX: REH)

Investing in a plumbing parts company may not be the most exciting place to put your money, but it has reaped rewards for investors. Its positive performance and successful expansion internationally has led to its shares beating the market over the last 10 years. Over the period, the Reece share price has generated an average total return of 15.1% per annum. This means a $20,000 investment in its shares in 2010 would now be worth $81,600 today.

ResMed Inc. (ASX: RMD)

The ResMed share price has been a consistently strong performer over the last decade. This has been driven by increasing demand for the medical device company's market-leading sleep treatment products and the growing awareness of sleep disorders like sleep apnoea. This has led to ResMed's shares generating an average total return of 23.6% per annum since 2010. This would have turned a $20,000 investment into ~$166,500 today.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited. The Motley Fool Australia has recommended ResMed Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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