“Someone’s sitting in the shade today because someone planted a tree a long time ago.”
— Warren Buffett
The Warren Buffett investment philosophy calls for a long-term investment horizon, where a two-decade 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 two-decade investment into the stock back in 2000.
| Start date: | 05/05/2000 |
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| End date: | 05/04/2020 | ||||
| Start price/share: | $46.00 | ||||
| End price/share: | $52.56 | ||||
| Starting shares: | 217.39 | ||||
| Ending shares: | 217.39 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 14.26% | ||||
| Average annual return: | 0.67% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $11,429.66 | ||||
As we can see, the two-decade investment result worked out as follows, with an annualized rate of return of 0.67%. This would have turned a $10K investment made 20 years ago into $11,429.66 today (as of 05/04/2020). On a total return basis, that’s a result of 14.26% (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 investment quote to leave you with:
“I make no attempt to forecast the market; my efforts are devoted to finding undervalued securities.” — Warren Buffett
