“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 Advanced Micro Devices Inc (NASD: AMD)? Today, we examine the outcome of a twenty year investment into the stock back in 2000.
| Start date: | 02/07/2000 |
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| End date: | 02/04/2020 | ||||
| Start price/share: | $20.66 | ||||
| End price/share: | $49.45 | ||||
| Starting shares: | 484.03 | ||||
| Ending shares: | 484.03 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 139.35% | ||||
| Average annual return: | 4.46% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $23,938.90 | ||||
The above analysis shows the twenty year investment result worked out as follows, with an annualized rate of return of 4.46%. This would have turned a $10K investment made 20 years ago into $23,938.90 today (as of 02/04/2020). On a total return basis, that’s a result of 139.35% (something to think about: how might AMD shares perform over the next 20 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
One more piece of investment wisdom to leave you with:
“If I’ve learned one thing in this life it’s this: even if you lose, don’t lose the lesson.” — Daymond John
