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“Someone’s sitting in the shade today because someone planted a tree a long time ago.”

— Warren Buffett

The Warren Buffett investment philosophy calls for a long-term investment horizon, where a two-decade holding period, or even longer, would fit right into the strategy. How would such a strategy have worked out for an investment into SVB Financial Group (NASD: SIVB)? Today, we examine the outcome of a two-decade investment into the stock back in 1999.

Start date: 06/21/1999
$10,000

06/21/1999
$199,522

06/18/2019
End date: 06/18/2019
Start price/share: $11.06
End price/share: $220.80
Starting shares: 904.16
Ending shares: 904.16
Dividends reinvested/share: $0.00
Total return: 1,896.38%
Average annual return: 16.14%
Starting investment: $10,000.00
Ending investment: $199,522.79

As shown above, the two-decade investment result worked out exceptionally well, with an annualized rate of return of 16.14%. This would have turned a $10K investment made 20 years ago into $199,522.79 today (as of 06/18/2019). On a total return basis, that’s a result of 1,896.38% (something to think about: how might SIVB shares perform over the next 20 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

Here’s one more great investment quote before you go:
“In the long run, we are all dead.” — John Maynard Keynes