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“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


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