“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.
|Average annual return:||32.31%|
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