Let's rewind the clock five years to early April 2020. The COVID-19 pandemic had gripped the world, sparking one of the most intense market crashes in recent history.

Investors were in full-blown panic mode. The ASX was tumbling, economies were shutting down, and confidence in the banking sector was in freefall.

Among the hardest hit were ANZ Group Holdings Ltd (ASX: ANZ) shares. At the time, its shares were trading at just $15.65, down sharply amid fears of widespread loan defaults, dividend cuts, and a major economic downturn.

It was a tough time to be brave. But as history shows time and time again — some of the best investments are made when fear is at its highest.

$10,000 invested in ANZ shares five years ago

Had you invested $10,000 in ANZ shares back then, you would have picked up approximately 639 shares.

Fast forward to today, and ANZ shares are changing hands for $28.18. That's a share price gain of around 80%, even after the recent market volatility which has dragged them back from a 52-week high of $32.80.

This gives those 639 shares a market value of $18,007.02.

But that's not the full story.

Don't forget the dividends

Over the past five years, ANZ has also returned significant value to shareholders through dividends. In total, it has paid out $6.29 per share in dividends, some of which were fully franked.

For our hypothetical investment, that's an additional $4,016 in dividend income on top of the capital gains.

So, all up, that original investment would now be worth approximately $22,025 based on the current share price — not including the benefit of franking credits.

A lesson for today

This kind of outcome underscores a vital lesson for investors: timing the market perfectly isn't necessary — but staying in the market and buying quality when prices are low can be immensely powerful.

When others were fearful, the savviest investors stayed the course, trusted in the strength of Australia's banking sector, bought ANZ shares, and were handsomely rewarded.

Looking at the market today, many ASX shares — from banks to tech to industrials — have been caught up in a fresh wave of selling. Geopolitical concerns and tariff headlines have made investors skittish. But if history is any guide, these periods of fear often present the best opportunities.

You don't need to pick the exact bottom. You just need to be willing to act when great businesses are being marked down. As the ANZ story shows, a little courage and a long-term mindset can turn temporary panic into serious profit.