“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 SVB Financial Group (NASD: SIVB)? Today, we examine the outcome of a twenty year investment into the stock back in 1999.
| Start date: | 12/13/1999 |
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| End date: | 12/12/2019 | ||||
| Start price/share: | $20.88 | ||||
| End price/share: | $251.21 | ||||
| Starting shares: | 478.93 | ||||
| Ending shares: | 478.93 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 1,103.11% | ||||
| Average annual return: | 13.24% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $120,389.61 | ||||
As we can see, the twenty year investment result worked out quite well, with an annualized rate of return of 13.24%. This would have turned a $10K investment made 20 years ago into $120,389.61 today (as of 12/12/2019). On a total return basis, that’s a result of 1,103.11% (something to think about: how might SIVB shares perform over the next 20 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
Another great investment quote to think about:
“It’s not always easy to do what’s not popular, but that’s where you make your money. Buy stocks that look bad to less careful investors and hang on until their real value is recognized.” — John Neff
