“Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”
— Warren Buffett
The Warren Buffett investment philosophy calls for a long-term investment horizon, where a decade-long holding period, or even longer, would fit right into the strategy. How would such a strategy have worked out for an investment into Micron Technology Inc. (NASD: MU)? Today, we examine the outcome of a decade-long investment into the stock back in 2009.
| Start date: | 06/01/2009 |
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| End date: | 05/30/2019 | ||||
| Start price/share: | $5.32 | ||||
| End price/share: | $33.32 | ||||
| Starting shares: | 1,879.70 | ||||
| Ending shares: | 1,879.70 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 526.32% | ||||
| Average annual return: | 20.14% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $62,643.54 | ||||
The above analysis shows the decade-long investment result worked out exceptionally well, with an annualized rate of return of 20.14%. This would have turned a $10K investment made 10 years ago into $62,643.54 today (as of 05/30/2019). On a total return basis, that’s a result of 526.32% (something to think about: how might MU shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
Another great investment quote to think about:
“Nearly every time I strayed from the herd, I’ve made a lot of money. Wandering away from the action is the way to find the new action.” — Jim Rogers
