The Australian share market is a great place to grow your wealth.
This is particularly the case if you're willing to be patient.
Sure, you could go all in on high-risk moonshot investments like Brainchip Holdings Ltd (ASX: BRN), but chances are you will end up destroying wealth unless you get very lucky.
Brainchip shares are down 74% since the start of the year, for the record.
Instead, by investing smartly in companies with strong business models and growing earnings, you could double your money in time.
But how long would it take to achieve this? Let's find out.
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Doubling your money with ASX shares
Thanks to the power of compounding, it has been possible to double your money in under eight years by matching the 30-year average ASX share market return of 9.6% per annum.
However, by outperforming the market, it is possible to get there even earlier. For example, an extra 1% per annum return would cut the time it takes down to seven years.
Think you can do even better? Beat it by 3% and you would double your money in just six years.
Match Warren Buffett's long-term return of 19.8% per annum and you will be there in under four years.
But it is worth remembering that most fund managers don't beat the market, let alone get a return of nearly 20% per annum. So, set realistic expectations, stay away from speculative stocks that lack any substance, and be patient.
An investment portfolio's growth is rarely linear. There are likely to be plenty of ups and downs along the way, but history shows that patience ultimately prevails.
