“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 O’Reilly Automotive, Inc. (NASD: ORLY)? Today, we examine the outcome of a twenty year investment into the stock back in 2001.
| Start date: | 06/21/2001 |
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| End date: | 06/18/2021 | ||||
| Start price/share: | $14.10 | ||||
| End price/share: | $537.09 | ||||
| Starting shares: | 709.22 | ||||
| Ending shares: | 709.22 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 3,709.15% | ||||
| Average annual return: | 19.96% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $381,208.19 | ||||
As we can see, the twenty year investment result worked out exceptionally well, with an annualized rate of return of 19.96%. This would have turned a $10K investment made 20 years ago into $381,208.19 today (as of 06/18/2021). On a total return basis, that’s a result of 3,709.15% (something to think about: how might ORLY shares perform over the next 20 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
One more investment quote to leave you with:
“If you are not willing to own a stock for 10 years, do not even think about owning it for 10 minutes.” — Warren Buffett
