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“Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”

— Warren Buffett

The Warren Buffett investment philosophy calls for a long-term investment horizon, where a decade-long holding period, or even longer, would fit right into the strategy. How would such a strategy have worked out for an investment into Inc (NASD: AMZN)? Today, we examine the outcome of a decade-long investment into the stock back in 2010.

Start date: 12/31/2010


End date: 12/30/2020
Start price/share: $180.00
End price/share: $3,285.85
Starting shares: 55.56
Ending shares: 55.56
Dividends reinvested/share: $0.00
Total return: 1,725.47%
Average annual return: 33.68%
Starting investment: $10,000.00
Ending investment: $182,538.78

As shown above, the decade-long investment result worked out exceptionally well, with an annualized rate of return of 33.68%. This would have turned a $10K investment made 10 years ago into $182,538.78 today (as of 12/30/2020). On a total return basis, that’s a result of 1,725.47% (something to think about: how might AMZN shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

Another great investment quote to think about:
“You get recessions, you have stock market declines. If you don’t understand that’s going to happen, then you’re not ready, you won’t do well in the markets.” — Peter Lynch