“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 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 Fiserv Inc (NASD: FISV)? Today, we examine the outcome of a two-decade investment into the stock back in 2000.
| Start date: | 11/20/2000 |
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| End date: | 11/18/2020 | ||||
| Start price/share: | $8.29 | ||||
| End price/share: | $107.97 | ||||
| Starting shares: | 1,206.27 | ||||
| Ending shares: | 1,206.27 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 1,202.41% | ||||
| Average annual return: | 13.69% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $130,287.67 | ||||
As shown above, the two-decade investment result worked out quite well, with an annualized rate of return of 13.69%. This would have turned a $10K investment made 20 years ago into $130,287.67 today (as of 11/18/2020). On a total return basis, that’s a result of 1,202.41% (something to think about: how might FISV 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:
“Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble.” — Warren Buffett
