“Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”
— Warren Buffett
The Warren Buffett investment philosophy calls for a long-term investment horizon, where a decade-long holding period, or even longer, would fit right into the strategy. How would such a strategy have worked out for an investment into O’Reilly Automotive, Inc. (NASD: ORLY)? Today, we examine the outcome of a decade-long investment into the stock back in 2010.
| Start date: | 02/12/2010 |
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| End date: | 02/11/2020 | ||||
| Start price/share: | $39.80 | ||||
| End price/share: | $389.76 | ||||
| Starting shares: | 251.26 | ||||
| Ending shares: | 251.26 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 879.30% | ||||
| Average annual return: | 25.62% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $97,917.27 | ||||
As shown above, the decade-long investment result worked out exceptionally well, with an annualized rate of return of 25.62%. This would have turned a $10K investment made 10 years ago into $97,917.27 today (as of 02/11/2020). On a total return basis, that’s a result of 879.30% (something to think about: how might ORLY shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
One more investment quote to leave you with:
“Searching for companies is like looking for grubs under rocks: if you turn over 10 rocks you’ll likely find one grub; if you turn over 20 rocks you’ll find two.” — Peter Lynch
