How A $10K Fiserv Investment In 2010 Worked Out

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— Warren Buffett

A key lesson we can learn from Warren Buffett, is about how to think about a potential stock investment in the context of a long-term time horizon. Every investor in a stock has a choice: bite our fingernails over the short-term ups and downs that are inevitable with the stock market, or, zero in on stocks we are comfortable to simply buy and hold for the long haul — maybe even a decade-long holding period. Heck, investors can even choose to completely ignore the stock market’s short-run quotations and instead go into their initial investment planning to hold on for years and years regardless of the fluctuations in price that might occur next.

Today, we examine what would have happened over a decade-long holding period, had you decided back in 2010 to buy shares of Fiserv Inc (NASD: FISV) and simply hold through to today.

FISV 10-Year Return Details
Start date:	06/15/2010	$10,000 06/15/2010 $82,074 06/12/2020
End date:	06/12/2020
Start price/share:	$12.23
End price/share:	$100.34
Starting shares:	817.66
Ending shares:	817.66
Dividends reinvested/share:	$0.00
Total return:	720.44%
Average annual return:	23.43%
Starting investment:	$10,000.00
Ending investment:	$82,074.32

The above analysis shows the decade-long investment result worked out exceptionally well, with an annualized rate of return of 23.43%. This would have turned a $10K investment made 10 years ago into $82,074.32 today (as of 06/12/2020). On a total return basis, that’s a result of 720.44% (something to think about: how might FISV shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

Another great investment quote to think about:
“A stock is not just a ticker symbol or an electronic blip; it is an ownership interest in an actual business, with an underlying value that does not depend on its share price.” — Benjamin Graham