3 ASX 200 shares that have returned more than 17% a year over the last decade

These shares demonstrate why buy and hold investing can be a great strategy for investors.

| More on:
A happy young couple lie on a wooden deck using a skateboard for a pillow.

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

Over the past 10 years, the S&P/ASX 200 Index (ASX: XJO) has delivered a return of approximately 9% per annum for investors.

While this is a good return, it is short of what has been recorded by Wall Street's Nasdaq and S&P 500 indices.

But that doesn't mean that all shares have been underperforming their US counterparts.

For example, the three ASX 200 shares listed below have generated significant wealth for shareholders by returning more than 17% per year over the past decade.

Let's see what they have recorded and what $5,000 invested in 2015 would be worth now:

Goodman Group (ASX: GMG)

This integrated industrial property juggernaut has been a great place to park your money over the past decade.

Thanks to its focus on high growth markets, the company has delivered consistently strong earnings growth, which has helped drive its shares higher and higher.

So much so, this ASX 200 share has recorded a total return of 19.7% per annum since back in 2015. This would have turned a $5,000 investment into over $30,000 today.

Xero Ltd (ASX: XRO)

Another ASX 200 share that has smashed the market over the past decade has been cloud accounting platform provider Xero.

10 years ago in FY 2014, Xero had just surpassed 300,000 paying customers on its platform. And from these subscribers, the company was generating annualised monthly recurring revenue of NZ$93 million.

If you fast forward to today, Xero now has approximately 4.2 million subscribers and annualised monthly recurring revenue of almost NZ$2.2 billion.

Unsurprisingly, this rapid growth has done wonders for the Xero share price. As a result, its shares have generated a total return of 28.2% per annum for investors over the decade.

This would have turned a $5,000 investment into Xero's shares in 2015 into almost $60,000 today.

ResMed Inc. (ASX: RMD)

Finally, ResMed has been an ASX 200 share to own over the past 10 years.

During this time, the sleep disorder treatment company has grown its earnings at a very strong rate thanks to its leadership position, significant investments in research and development, and the growing awareness of sleep disorders.

This has led to ResMed's shares delivering investors a market-beating total return of 17% per annum for the period.

This means that if you had invested $5,000 into ResMed's shares at this point in 2015, your investment would now be worth over 24%.

Motley Fool contributor James Mickleboro has positions in ResMed and Xero. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group, ResMed, and Xero. The Motley Fool Australia has positions in and has recommended ResMed and Xero. The Motley Fool Australia has recommended Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Growth Shares

A group of people gathered around a laptop computer with various expressions of interest, concern and surprise on their faces. All are wearing glasses.
Growth Shares

Turn $300 into significant wealth: 3 explosive ASX opportunities for Aussie investors

Analysts think these shares could be great picks for growth focused investors.

Read more »

A man looking at his laptop and thinking.
Growth Shares

What I'd buy with $2,000 on the ASX right now

Here are three options for investors to look at this month.

Read more »

Silhouette of CEO standing in conference room looking out at cityscape
Growth Shares

3 founder-led ASX 200 shares with serious long-term upside

Let's see what makes these shares top picks according to analysts.

Read more »

Man holding out Australian dollar notes, symbolising dividends.
Growth Shares

Where to invest $5,000 in ASX 200 shares in May

Analysts think that these shares could be top picks for Aussie investors next month.

Read more »

Two happy excited friends in euphoria mood after winning in a bet with a smartphone in hand.
Growth Shares

3 fantastic ASX growth shares to buy with $2,000 in May

Analysts think these shares would be top picks for growth investors right now.

Read more »

A man points at a paper as he holds an alarm clock.
Growth Shares

3 ASX 200 stocks to buy and hold forever without thinking twice

Here's why these shares could be great buy and hold options for investors.

Read more »

A person with a round-mouthed expression clutches a device screen and looks shocked and surprised.
Growth Shares

3 unstoppable ASX growth shares to buy and hold for the long term

Analysts have good things to say about these top stocks.

Read more »

A woman wearing dark clothing and sporting a few tattoos and piercings holds a phone and a takeaway coffee cup as she strolls under the Sydney Harbour Bridge which looms in the background.
Growth Shares

Top Australian stocks for a $7,000 investment today

These stocks are highly rated by analysts. Let's find out why.

Read more »