“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 Micron Technology Inc. (NASD: MU)? Today, we examine the outcome of a decade-long investment into the stock back in 2011.
| Start date: | 09/19/2011 |
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| End date: | 09/16/2021 | ||||
| Start price/share: | $6.88 | ||||
| End price/share: | $74.63 | ||||
| Starting shares: | 1,453.49 | ||||
| Ending shares: | 1,453.49 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 984.74% | ||||
| Average annual return: | 26.92% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $108,467.75 | ||||
As we can see, the decade-long investment result worked out exceptionally well, with an annualized rate of return of 26.92%. This would have turned a $10K investment made 10 years ago into $108,467.75 today (as of 09/16/2021). On a total return basis, that’s a result of 984.74% (something to think about: how might MU shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
One more investment quote to leave you with:
“Wide diversification is only required when investors do not understand what they are doing.” — Warren Buffett
