Photo credit:

“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


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