“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 twenty year 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 twenty year investment into the stock back in 2000.
|Average annual return:||4.49%|
As shown above, the twenty year investment result worked out as follows, with an annualized rate of return of 4.49%. This would have turned a $10K investment made 20 years ago into $24,082.61 today (as of 08/24/2020). On a total return basis, that’s a result of 140.81% (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.]
More investment wisdom to ponder:
“In investing, what is comfortable is rarely profitable.” — Robert Arnott