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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 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


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