“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 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 Zebra Technologies Corp. (NASD: ZBRA)? Today, we examine the outcome of a two-decade investment into the stock back in 2000.
| Start date: | 10/05/2000 |
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| End date: | 10/02/2020 | ||||
| Start price/share: | $18.81 | ||||
| End price/share: | $258.81 | ||||
| Starting shares: | 531.63 | ||||
| Ending shares: | 531.63 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 1,275.92% | ||||
| Average annual return: | 14.00% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $137,533.61 | ||||
As shown above, the two-decade investment result worked out quite well, with an annualized rate of return of 14.00%. This would have turned a $10K investment made 20 years ago into $137,533.61 today (as of 10/02/2020). On a total return basis, that’s a result of 1,275.92% (something to think about: how might ZBRA shares perform over the next 20 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
Another great investment quote to think about:
“You can get in much more trouble with a good idea than a bad idea, because you forget that the good idea has limits.” — Benjamin Graham
