“Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”
— Warren Buffett
The Warren Buffett investment philosophy calls for a long-term investment horizon, where a decade-long holding period, or even longer, would fit right into the strategy. How would such a strategy have worked out for an investment into Amazon.com Inc (NASD: AMZN)? Today, we examine the outcome of a decade-long investment into the stock back in 2011.
| Start date: | 07/20/2011 |
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| End date: | 07/19/2021 | ||||
| Start price/share: | $215.55 | ||||
| End price/share: | $3,549.59 | ||||
| Starting shares: | 46.39 | ||||
| Ending shares: | 46.39 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 1,546.76% | ||||
| Average annual return: | 32.31% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $164,661.84 | ||||
As shown above, the decade-long investment result worked out exceptionally well, with an annualized rate of return of 32.31%. This would have turned a $10K investment made 10 years ago into $164,661.84 today (as of 07/19/2021). On a total return basis, that’s a result of 1,546.76% (something to think about: how might AMZN 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:
“A 10% decline in the market is fairly common, it happens about once a year. Investors who realize this are less likely to sell in a panic, and more likely to remain invested, benefitting from the wealthbuilding power of stocks.” — Christopher Davis
