“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 two-decade holding period, or even longer, would fit right into the strategy. How would such a strategy have worked out for an investment into Waters Corp. (NYSE: WAT)? Today, we examine the outcome of a two-decade investment into the stock back in 1999.
| Start date: | 11/05/1999 |
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| End date: | 11/04/2019 | ||||
| Start price/share: | $22.59 | ||||
| End price/share: | $214.99 | ||||
| Starting shares: | 442.67 | ||||
| Ending shares: | 442.67 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 851.70% | ||||
| Average annual return: | 11.92% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $95,211.63 | ||||
The above analysis shows the two-decade investment result worked out quite well, with an annualized rate of return of 11.92%. This would have turned a $10K investment made 20 years ago into $95,211.63 today (as of 11/04/2019). On a total return basis, that’s a result of 851.70% (something to think about: how might WAT shares perform over the next 20 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
Here’s one more great investment quote before you go:
“Generally, the greater the stigma or revulsion, the better the bargain.” — Seth Klarman
