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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 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


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