“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 twenty year holding period, or even longer, would fit right into the strategy. How would such a strategy have worked out for an investment into Fiserv Inc (NASD: FISV)? Today, we examine the outcome of a twenty year investment into the stock back in 1999.
| Start date: | 08/20/1999 |
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| End date: | 08/19/2019 | ||||
| Start price/share: | $4.77 | ||||
| End price/share: | $107.75 | ||||
| Starting shares: | 2,096.44 | ||||
| Ending shares: | 2,096.44 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 2,158.91% | ||||
| Average annual return: | 16.86% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $225,974.37 | ||||
As we can see, the twenty year investment result worked out exceptionally well, with an annualized rate of return of 16.86%. This would have turned a $10K investment made 20 years ago into $225,974.37 today (as of 08/19/2019). On a total return basis, that’s a result of 2,158.91% (something to think about: how might FISV 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:
“Based on my own personal experience, both as an investor in recent years and an expert witness in years past, rarely do more than three or four variables really count. Everything else is noise.” — Martin Whitman
