How you can become rich buying and holding ASX shares

I’m a big fan of buy and hold investing and believe it is the best way to generate wealth. And there’s a very good reason for this.

For example, according to data out of Fidelity, as of the end of 2020, the Australian share market had provided an average total return of 8.55% per annum over the last 30 years. That’s even after taking into account market meltdowns during the GFC and pandemic.

This means that a single $10,000 investment three decades ago and earning the market return would now be worth just under $120,000.

What about if you beat the market?

If you invest wisely in companies with strong business models and equally strong growth prospects, you could potentially beat the market.

For this example, let’s say you…