“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 two-decade holding period, or even longer, would fit right into the strategy. How would such a strategy have worked out for an investment into Amazon.com Inc (NASD: AMZN)? Today, we examine the outcome of a two-decade investment into the stock back in 2000.
| Start date: | 10/06/2000 |
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| End date: | 10/05/2020 | ||||
| Start price/share: | $31.56 | ||||
| End price/share: | $3,199.20 | ||||
| Starting shares: | 316.83 | ||||
| Ending shares: | 316.83 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 10,036.08% | ||||
| Average annual return: | 25.96% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $1,013,331.35 | ||||
As shown above, the two-decade investment result worked out exceptionally well, with an annualized rate of return of 25.96%. This would have turned a $10K investment made 20 years ago into $1,013,331.35 today (as of 10/05/2020). On a total return basis, that’s a result of 10,036.08% (something to think about: how might AMZN shares perform over the next 20 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
One more piece of investment wisdom to leave you with:
“Anyone who is not investing now is missing a tremendous opportunity.” — Carlos Slim
