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“Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”

— Warren Buffett

The above quote from Warren Buffett is timeless, and brings into focus the choice about time horizon that any investor should think about before buying a stock they are considering. Behind every stock is an actual business; what will that business look like over a ten year period?

Today, let’s look backwards in time to 2011, and take a look at what happened to investors who asked that very question about O’Reilly Automotive, Inc. (NASD: ORLY), by taking a look at the investment outcome over a ten year holding period.

Start date: 07/13/2011


End date: 07/12/2021
Start price/share: $64.34
End price/share: $591.51
Starting shares: 155.42
Ending shares: 155.42
Dividends reinvested/share: $0.00
Total return: 819.35%
Average annual return: 24.82%
Starting investment: $10,000.00
Ending investment: $91,911.40

As we can see, the ten year investment result worked out exceptionally well, with an annualized rate of return of 24.82%. This would have turned a $10K investment made 10 years ago into $91,911.40 today (as of 07/12/2021). On a total return basis, that’s a result of 819.35% (something to think about: how might ORLY shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

Another great investment quote to think about:
“The policy of being too cautious is the greatest risk of all.” — Jawaharlal Nehru