“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.
|Average annual return:||3.72%|
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