“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 Zebra Technologies Corp. (NASD: ZBRA)? Today, we examine the outcome of a ten year investment into the stock back in 2010.
| Start date: | 08/23/2010 |
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| End date: | 08/20/2020 | ||||
| Start price/share: | $28.41 | ||||
| End price/share: | $276.55 | ||||
| Starting shares: | 351.99 | ||||
| Ending shares: | 351.99 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 873.42% | ||||
| Average annual return: | 25.55% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $97,312.17 | ||||
As shown above, the ten year investment result worked out exceptionally well, with an annualized rate of return of 25.55%. This would have turned a $10K investment made 10 years ago into $97,312.17 today (as of 08/20/2020). On a total return basis, that’s a result of 873.42% (something to think about: how might ZBRA 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:
“In the long run, it’s not just how much money you make that will determine your future prosperity. It’s how much of that money you put to work by saving it and investing it.” — Peter Lynch
