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“When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever.”

— Warren Buffett

This inspiring quote from Warren Buffett teaches us the importance of considering our investment time horizon when approaching any given investment: Could we envision ourselves holding the stock we are considering for many years? Even a twenty year holding period potentially?

For “buy-and-hold” investors taking a long-term view, what’s important isn’t the short-term stock market fluctuations that will inevitably occur, but what happens over the long haul. Looking back 20 years to 1999, investors considering an investment into shares of Take-Two Interactive Software, Inc. (NASD: TTWO) may have been pondering this very question and thinking about their potential investment result over a full twenty year time horizon. Here’s how that would have worked out.

Start date: 05/17/1999


End date: 05/15/2019
Start price/share: $5.17
End price/share: $107.48
Starting shares: 1,934.24
Ending shares: 1,934.36
Dividends reinvested/share: $0.00
Total return: 1,979.04%
Average annual return: 16.38%
Starting investment: $10,000.00
Ending investment: $208,021.64

The above analysis shows the twenty year investment result worked out exceptionally well, with an annualized rate of return of 16.38%. This would have turned a $10K investment made 20 years ago into $208,021.64 today (as of 05/15/2019). On a total return basis, that’s a result of 1,979.04% (something to think about: how might TTWO shares perform over the next 20 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

One more investment quote to leave you with:
“There is nothing riskier than the widespread perception that there is no risk.” — Howard Marks