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“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 Micron Technology Inc. (NASD: MU)? Today, we examine the outcome of a twenty year investment into the stock back in 1999.

Start date: 09/20/1999
$10,000

09/20/1999
$12,620

09/18/2019
End date: 09/18/2019
Start price/share: $40.00
End price/share: $50.48
Starting shares: 250.00
Ending shares: 250.00
Dividends reinvested/share: $0.00
Total return: 26.20%
Average annual return: 1.17%
Starting investment: $10,000.00
Ending investment: $12,620.50

The above analysis shows the twenty year investment result worked out as follows, with an annualized rate of return of 1.17%. This would have turned a $10K investment made 20 years ago into $12,620.50 today (as of 09/18/2019). On a total return basis, that’s a result of 26.20% (something to think about: how might MU shares perform over the next 20 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

More investment wisdom to ponder:
“I make no attempt to forecast the market; my efforts are devoted to finding undervalued securities.” — Warren Buffett