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 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


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