I'm a big fan of buy and hold investing and believe it is one of the best ways for investors to grow their wealth.
To demonstrate how successful it can be, now and then I like to pick out a number of popular ASX shares to see how much an investment several years ago would be worth today.
This time around, I have picked out the five ASX shares listed below with $5,000 investments over the last five years. Here's how they have fared:
Altium Limited (ASX: ALU)
This electronic design software provider's shares have smashed the market over the last five years. This has been driven by increasing demand for its software thanks partly to the Internet of Things and artificial intelligence booms. Over the period, Altium's shares have generated an average total return of 26.4% per annum. This would have turned a $5,000 investment in 2017 into $16,100 today.
BHP Group Ltd (ASX: BHP)
The Big Australian has been a great place to park your money since 2017. With commodity prices at very favourable levels, the mining giant has been generating significant free cash flow. This has sent its shares hurtling higher and allowed the company to pay some very big dividends. As a result, BHP shares have delivered an average total return of 17.9% per annum. This means that a $5,000 in BHP's shares five years ago would now be worth $11,400. You'd also own a parcel of Woodside Energy Group Ltd (ASX: WDS) shares.
CSL Limited (ASX: CSL)
Another successful investment over the last five years has been biotherapeutics giant CSL. Thanks to acquisitions, its material investment in research and development each year, and strong demand for its immunoglobins, CSL's shares have generated an average total return of 16.4% per annum. This would have turned a $5,000 investment into $10,700.
Pilbara Minerals Ltd (ASX: PLS)
If you've been a long term investor in this lithium share, you will no doubt be smiling today. Thanks to insatiable demand for the white metal due to the rise of electric vehicles, Pilbara Minerals' shares have rocketed higher. This has led to them generating an average total return of 44.3% per annum. This means that a $5,000 investment in 2017 would now be worth a staggering $31,300 today.
Woolworths Group Ltd (ASX: WOW)
Finally, this retail giant's shares have been positive performers over the last five years thanks to its strong market position, loyal customer base, and defensive qualities. During this time, Woolworths' shares have generated an average total return of 11.7% per annum. This would have turned a $5,000 investment into approximately $8,700 today.
