The easy way to build significant wealth with ASX shares

Here's the easy way to succeed in the investing world.

Beautiful holiday photo showing two deck chairs close-up with people sitting in them enjoying the bright blue ocean and island view while sipping champagne and enjoying the good life thanks to Pilbara Minerals share price gains in recent times

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

Investing in speculative ASX shares can seem exciting. But time after time, investors that put their money into these types of companies end up getting burned.

And yet, that doesn't stop people from chasing the thrill — the next big tech stock, the hottest thematic, or the small cap with a game-changing product just around the corner.

A prime example of this is Brainchip Holdings Ltd (ASX: BRN).

Countless investors have put large sums of their hard-earned money into this speculative stock and have watched their investment become worth less and less. And unless the semiconductor company can actually start generating more revenue than a local cafe in the near future, those investments may eventually become worthless.

If your goal is to actually build wealth — not just accumulate war stories — the best path forward usually looks the same: buy great businesses, hold them for a long time, and ignore the noise.

The best ASX shares aren't always the loudest

Take a look at the ASX over the past 10 years and you will see something interesting. It is not the meme stocks that have done the business for investors. It is shares like Goodman Group (ASX: GMG) and TechnologyOne Ltd (ASX: TNE) — businesses that just keep doing what they do well.

Goodman has generated an average total return of 17.25% per annum since 2015 and TechnologyOne has delivered a 21.8% per annum return.

To put that into context, $10,000 invested in these ASX shares 10 years ago would now be worth approximately $52,000 and $80,000, respectively.

No drama, no hype. Just quietly compounding earnings and returning value to shareholders.

These companies don't make the news every day. But they often make millionaires over time.

Patience isn't passive

There's a misconception that long-term investing is just about set and forget. But that isn't quite true. Long-term investing is more like active patience.

It is about making intentional decisions, doing your research, and then sticking with it for as long as your investment thesis remains intact.

So what should you own?

A few quality ASX shares, like ResMed Inc (ASX: RMD) or Lovisa Holdings Ltd (ASX: LOV), combined with some global exposure via ASX ETFs like iShares S&P 500 ETF (ASX: IVV) or Betashares Global Quality Leaders ETF (ASX: QLTY), could give you a diversified, growth-focused portfolio that does most of the work for you.

It most probably won't double overnight. But it will grow. And in 10 or 20 years, you might just look back and realise that your boring investments were the smartest decisions you ever made.

Should you invest $1,000 in Pendal Group right now?

Before you buy Pendal Group shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Pendal Group wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor James Mickleboro has positions in Goodman Group, Lovisa, ResMed, and Technology One. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group, Lovisa, ResMed, Technology One, and iShares S&P 500 ETF. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended Goodman Group, Lovisa, Technology One, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on How to invest

A businesswoman weighs up the stack of cash she receives, with the pile in one hand significantly more than the other hand.
How to invest

How I'd build a $20,000 annual passive income stream from these top ASX 200 shares

To earn $20,000 a year in passive income, I’d start with these three ASX 200 shares.

Read more »

a smiling picture of legendary US investment guru Warren Buffett.
How to invest

Life after Warren Buffett: other successful investors still in the game worth following

With Warren Buffett retiring it’s time to look at some other investors delivering solid returns.  

Read more »

An older woman gazes over the top of her glasses with a quizzical expression as if she is considering some information.
How to invest

How to build an ASX ETF portfolio to match your risk profile

Time for a portfolio review?

Read more »

A man sits cross-legged in a zen pose on top of his desk as papers fly around his head, keeping calm amid the volatility.
How to invest

Why market volatility is an ASX stock picker's best friend

Here's why you shouldn't fear market volatility.

Read more »

A businessman compares the growth trajectory of property versus shares.
How to invest

Why does Warren Buffett prefer shares over property?

Equities made Buffett the world's most successful investor.

Read more »

Person holding Australian dollar notes, symbolising dividends.
How to invest

Should I spend $5,000 on ASX 200 shares or ASX ETFs this month?

Where is the best place to invest these funds? Let's look at the options.

Read more »

a smiling picture of legendary US investment guru Warren Buffett.
How to invest

2 famous investors with even better track records than Warren Buffett

These two fellow Americans achieved mind blowing returns.

Read more »

A group of young ASX investors sitting around a laptop with an older lady standing behind them explaining how investing works.
How to invest

How a beginner investor could build a $250,000 ASX share portfolio

These easy steps could help you on your way to riches in the share market.

Read more »