“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 United Rentals Inc (NYSE: URI)? Today, we examine the outcome of a decade-long investment into the stock back in 2010.
| Start date: | 03/10/2010 |
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| End date: | 03/09/2020 | ||||
| Start price/share: | $8.50 | ||||
| End price/share: | $98.96 | ||||
| Starting shares: | 1,176.47 | ||||
| Ending shares: | 1,176.47 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 1,064.24% | ||||
| Average annual return: | 27.81% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $116,396.60 | ||||
The above analysis shows the decade-long investment result worked out exceptionally well, with an annualized rate of return of 27.81%. This would have turned a $10K investment made 10 years ago into $116,396.60 today (as of 03/09/2020). On a total return basis, that’s a result of 1,064.24% (something to think about: how might URI 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:
“The individual investor should act consistently as an investor and not as a speculator. This means that he should be able to justify every purchase he makes and each price he pays by impersonal, objective reasoning that satisfies him that he is getting more than his money’s worth for his purchase.” — Benjamin Graham
