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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: 06/25/2001


End date: 06/24/2021
Start price/share: $39.02
End price/share: $80.58
Starting shares: 256.28
Ending shares: 256.28
Dividends reinvested/share: $0.00
Total return: 106.51%
Average annual return: 3.69%
Starting investment: $10,000.00
Ending investment: $20,649.52

As shown above, the two-decade investment result worked out as follows, with an annualized rate of return of 3.69%. This would have turned a $10K investment made 20 years ago into $20,649.52 today (as of 06/24/2021). On a total return basis, that’s a result of 106.51% (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.]

One more piece of investment wisdom to leave you with:
“Invest for the long haul. Don’t get too greedy and don’t get too scared.” — Shelby Davis