“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 Electronic Arts, Inc. (NASD: EA)? Today, we examine the outcome of a twenty year investment into the stock back in 1999.
| Start date: | 10/04/1999 |
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| End date: | 10/01/2019 | ||||
| Start price/share: | $71.62 | ||||
| End price/share: | $96.75 | ||||
| Starting shares: | 139.62 | ||||
| Ending shares: | 139.62 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 35.08% | ||||
| Average annual return: | 1.51% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $13,496.22 | ||||
The above analysis shows the twenty year investment result worked out as follows, with an annualized rate of return of 1.51%. This would have turned a $10K investment made 20 years ago into $13,496.22 today (as of 10/01/2019). On a total return basis, that’s a result of 35.08% (something to think about: how might EA shares perform over the next 20 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
More investment wisdom to ponder:
“Don’t wait for the perfect time, you will wait forever. Always take advantage of the time you’re given and make it perfect.” — Daymond John
