Photo credit:

“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


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