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“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 ten year holding period, or even longer, would fit right into the strategy. How would such a strategy have worked out for an investment into AutoZone, Inc. (NYSE: AZO)? Today, we examine the outcome of a ten year investment into the stock back in 2010.

Start date: 05/04/2010


End date: 05/01/2020
Start price/share: $183.83
End price/share: $994.45
Starting shares: 54.40
Ending shares: 54.40
Dividends reinvested/share: $0.00
Total return: 440.96%
Average annual return: 18.39%
Starting investment: $10,000.00
Ending investment: $54,094.14

The above analysis shows the ten year investment result worked out exceptionally well, with an annualized rate of return of 18.39%. This would have turned a $10K investment made 10 years ago into $54,094.14 today (as of 05/01/2020). On a total return basis, that’s a result of 440.96% (something to think about: how might AZO shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

More investment wisdom to ponder:
“Most investors want to do today what they should have done yesterday.” — Larry Summers