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“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 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 Micron Technology Inc. (NASD: MU)? Today, we examine the outcome of a two-decade investment into the stock back in 2001.

Start date: 05/07/2001


End date: 05/04/2021
Start price/share: $42.90
End price/share: $84.41
Starting shares: 233.10
Ending shares: 233.10
Dividends reinvested/share: $0.00
Total return: 96.76%
Average annual return: 3.44%
Starting investment: $10,000.00
Ending investment: $19,672.10

As shown above, the two-decade investment result worked out as follows, with an annualized rate of return of 3.44%. This would have turned a $10K investment made 20 years ago into $19,672.10 today (as of 05/04/2021). On a total return basis, that’s a result of 96.76% (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.]

Another great investment quote to think about:
“It’s not how much money you make, but how much money you keep.” — Robert Kiyosaki