“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 Waters Corp. (NYSE: WAT)? Today, we examine the outcome of a twenty year investment into the stock back in 2000.
| Start date: | 04/03/2000 |
|
|||
| End date: | 03/31/2020 | ||||
| Start price/share: | $43.56 | ||||
| End price/share: | $182.05 | ||||
| Starting shares: | 229.57 | ||||
| Ending shares: | 229.57 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 317.93% | ||||
| Average annual return: | 7.41% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $41,789.24 | ||||
As we can see, the twenty year investment result worked out well, with an annualized rate of return of 7.41%. This would have turned a $10K investment made 20 years ago into $41,789.24 today (as of 03/31/2020). On a total return basis, that’s a result of 317.93% (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.]
One more piece of investment wisdom to leave you with:
“Finding the best person or the best organization to invest your money is one of the most important financial decisions you’ll ever make.” — Bill Gross
