“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 ten year holding period, or even longer, would fit right into the strategy. How would such a strategy have worked out for an investment into Copart Inc (NASD: CPRT)? Today, we examine the outcome of a ten year investment into the stock back in 2009.
| Start date: | 07/23/2009 |
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| End date: | 07/22/2019 | ||||
| Start price/share: | $8.48 | ||||
| End price/share: | $78.24 | ||||
| Starting shares: | 1,179.25 | ||||
| Ending shares: | 1,179.25 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 822.64% | ||||
| Average annual return: | 24.88% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $92,298.21 | ||||
The above analysis shows the ten year investment result worked out exceptionally well, with an annualized rate of return of 24.88%. This would have turned a $10K investment made 10 years ago into $92,298.21 today (as of 07/22/2019). On a total return basis, that’s a result of 822.64% (something to think about: how might CPRT shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
One more piece of investment wisdom to leave you with:
“Sometimes buying early on the way down looks like being wrong, but it isn’t.” — Seth Klarman
