How to turn $20,000 into $475,000 in 10 years with ASX shares

These ASX shares have generated strong returns for investors…

| More on:
A happy woman wearing glasses and smiling broadly holds up a bunch of dollar notes

Image source: Getty Images

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 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:

Domino's Pizza Enterprises Ltd (ASX: DMP)

This pizza chain operator has been a fantastic place to invest over the last decade. During this time the company has delivered consistently strong sales and earnings growth thanks to the popularity of its offering and its growing footprint. In respect to the latter, back in FY 2011 the company had 866 stores. Whereas last month it released its FY 2021 results and revealed that it opened 285 new stores during the year, bringing its total to 2,949 stores. Pleasingly, management believes it can grow this to 6,650 stores in existing markets by 2033. Over the last 10 years, the company's shares have generated an average total return of 37.2% per annum. This would have turned a $20,000 investment into ~$473,000.

REA Group Limited (ASX: REA)

The REA Group share price has also been a very strong performer over the last 10 years. This has been driven by strong earnings growth that has been underpinned by the structural shift to online property listings, the dominance of its realestate.com.au website, and its growing international operations. This has ultimately led to the company's shares providing investors with an average 29.3% per annum total return. This means that a $20,000 investment in REA Group's shares in 2011 would now be worth ~$261,000.

ResMed Inc. (ASX: RMD)

Finally, the ResMed share price has beaten the market by some distance over the last decade. This has been driven by its consistently solid sales and earnings growth over the period. ResMed's growth reflects its industry-leading solutions and the growing awareness and prevalence of sleep disorders. Over the last 10 years, ResMed's shares have provided investors with an average total return of 30.3% per annum. This means that an investment of $20,000 into its shares in 2011 would have grown to be worth ~$282,000 this year.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the 'five best ASX stocks' for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now...

See The 5 Stocks *Returns as of 6 March 2025

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 has recommended Dominos Pizza Enterprises Limited, REA Group Limited, and ResMed Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on How to invest

A little girl fills her jar up with coins with a smile on her face.
How to invest

I'm fully invested. How can I take advantage of lower ASX share prices?

You've always got options with a well-diversified portfolio.

Read more »

Two red sneakers on the start line, indicating a new investor learning about share price movement and how to invest
How to invest

Here's a starter portfolio of ASX 200 shares to consider for growth, dividends, and value!

Starting your journey? Here's a quick hack to get you going.

Read more »

A man walks up three brick pillars to a dollar sign.
How to invest

5 easy steps to build a $100,000 ASX share portfolio

It may not be as hard as you expect to build wealth in the share market.

Read more »

A group of young people lined up on a wall are happy looking at their laptops and devices as they invest in the latest trendy stock.
How to invest

Why last week's market selloff is a gift for beginner ASX investors

Starting your journey? Here's why it could be the perfect time to do so.

Read more »

A young woman sits with her hand to her chin staring off to the side thinking about her investments.
How to invest

Buying in the dip: Lessons from Warren Buffett's 'acts of omission'

When it comes to investing, what you didn't do can be just as damaging as what you did do.

Read more »

A woman sits in her home with chin resting on her hand and looking at her laptop computer with some reflection with an assortment of books and documents on her table.
How to invest

A trip down memory lane: How buying stocks in the Covid pandemic made me a better investor today

It might be a prudent time to remember 2020...

Read more »

How to invest

How I position my portfolio for downside protection

Here are two ways you can hedge against a market crash.

Read more »

A man with a wide, eager smile on his face holds up three fingers.
How to invest

The top 3 qualities I look for when picking an ASX stock

These are non-negotiables for me when it comes to making investments.

Read more »