Photo credit:

“When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever.”

— 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 2001.

Start date: 03/08/2001


End date: 03/05/2021
Start price/share: $42.85
End price/share: $88.93
Starting shares: 233.37
Ending shares: 233.37
Dividends reinvested/share: $0.00
Total return: 107.54%
Average annual return: 3.72%
Starting investment: $10,000.00
Ending investment: $20,765.25

As we can see, the twenty year investment result worked out as follows, with an annualized rate of return of 3.72%. This would have turned a $10K investment made 20 years ago into $20,765.25 today (as of 03/05/2021). On a total return basis, that’s a result of 107.54% (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.]

More investment wisdom to ponder:
“I make no attempt to forecast the market; my efforts are devoted to finding undervalued securities.” — Warren Buffett