“When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever.”
— 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 Amazon.com Inc (NASD: AMZN)? Today, we examine the outcome of a twenty year investment into the stock back in 1999.
| Start date: | 09/16/1999 |
|
|||
| End date: | 09/13/2019 | ||||
| Start price/share: | $65.25 | ||||
| End price/share: | $1,839.34 | ||||
| Starting shares: | 153.26 | ||||
| Ending shares: | 153.26 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 2,718.91% | ||||
| Average annual return: | 18.16% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $281,712.91 | ||||
As shown above, the twenty year investment result worked out exceptionally well, with an annualized rate of return of 18.16%. This would have turned a $10K investment made 20 years ago into $281,712.91 today (as of 09/13/2019). On a total return basis, that’s a result of 2,718.91% (something to think about: how might AMZN 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:
“Money is better than poverty, if only for financial reasons.” — Woody Allen
