“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 Micron Technology Inc. (NASD: MU)? Today, we examine the outcome of a twenty year investment into the stock back in 2000.
| Start date: | 10/26/2000 |
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| End date: | 10/23/2020 | ||||
| Start price/share: | $31.62 | ||||
| End price/share: | $52.85 | ||||
| Starting shares: | 316.21 | ||||
| Ending shares: | 316.21 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 67.11% | ||||
| Average annual return: | 2.60% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $16,711.23 | ||||
As shown above, the twenty year investment result worked out as follows, with an annualized rate of return of 2.60%. This would have turned a $10K investment made 20 years ago into $16,711.23 today (as of 10/23/2020). On a total return basis, that’s a result of 67.11% (something to think about: how might MU shares perform over the next 20 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
One more investment quote to leave you with:
“The most important thing about an investment philosophy is that you have one.” — David Booth
