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“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.

Start date: 08/25/2000


End date: 08/24/2020
Start price/share: $34.50
End price/share: $83.08
Starting shares: 289.86
Ending shares: 289.86
Dividends reinvested/share: $0.00
Total return: 140.81%
Average annual return: 4.49%
Starting investment: $10,000.00
Ending investment: $24,082.61

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