Photo credit:

“When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever.”

— Warren Buffett

Investors can learn a lot from Warren Buffett, whose above quote teaches the importance of thinking about investment time horizon, and asking ourselves before buying any given stock: can we envision holding onto it for years — even a twenty year holding period possibly?

Suppose a “buy-and-hold” investor was considering an investment into Take-Two Interactive Software, Inc. (NASD: TTWO) back in 2000: back then, such an investor may have been pondering this very same question. Had they answered “yes” to a full twenty year investment time horizon and then actually held for these past 20 years, here’s how that investment would have turned out.

Start date: 05/22/2000


End date: 05/19/2020
Start price/share: $8.21
End price/share: $142.24
Starting shares: 1,218.03
Ending shares: 1,218.10
Dividends reinvested/share: $0.00
Total return: 1,632.63%
Average annual return: 15.32%
Starting investment: $10,000.00
Ending investment: $173,153.74

As we can see, the twenty year investment result worked out exceptionally well, with an annualized rate of return of 15.32%. This would have turned a $10K investment made 20 years ago into $173,153.74 today (as of 05/19/2020). On a total return basis, that’s a result of 1,632.63% (something to think about: how might TTWO 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:
“To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks.” — Benjamin Graham