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“When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever.”

— 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: 10/16/2000


End date: 10/15/2020
Start price/share: $20.38
End price/share: $83.13
Starting shares: 490.80
Ending shares: 490.80
Dividends reinvested/share: $0.00
Total return: 308.00%
Average annual return: 7.28%
Starting investment: $10,000.00
Ending investment: $40,804.66

As shown above, the twenty year investment result worked out well, with an annualized rate of return of 7.28%. This would have turned a $10K investment made 20 years ago into $40,804.66 today (as of 10/15/2020). On a total return basis, that’s a result of 308.00% (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.]

Here’s one more great investment quote before you go:
“Far more money has been lost by investors trying to anticipate corrections, than lost in the corrections themselves.” — Peter Lynch