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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: 10/22/1999
$10,000

10/22/1999
$14,206

10/21/2019
End date: 10/21/2019
Start price/share: $31.81
End price/share: $45.22
Starting shares: 314.37
Ending shares: 314.37
Dividends reinvested/share: $0.00
Total return: 42.16%
Average annual return: 1.77%
Starting investment: $10,000.00
Ending investment: $14,206.24

As shown above, the twenty year investment result worked out as follows, with an annualized rate of return of 1.77%. This would have turned a $10K investment made 20 years ago into $14,206.24 today (as of 10/21/2019). On a total return basis, that’s a result of 42.16% (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.]

One more investment quote to leave you with:
“Cash combined with courage in a time of crisis is priceless.” — Warren Buffett