“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 |
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| 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
