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“When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever.”

— Warren Buffett

The Warren Buffett investment philosophy calls for a long-term investment horizon, where a twenty year holding period, or even longer, would fit right into the strategy. How would such a strategy have worked out for an investment into Zebra Technologies Corp. (NASD: ZBRA)? Today, we examine the outcome of a twenty year investment into the stock back in 2001.

Start date: 12/03/2001


End date: 11/30/2021
Start price/share: $22.30
End price/share: $588.78
Starting shares: 448.43
Ending shares: 448.43
Dividends reinvested/share: $0.00
Total return: 2,540.27%
Average annual return: 17.78%
Starting investment: $10,000.00
Ending investment: $264,131.64

As we can see, the twenty year investment result worked out exceptionally well, with an annualized rate of return of 17.78%. This would have turned a $10K investment made 20 years ago into $264,131.64 today (as of 11/30/2021). On a total return basis, that’s a result of 2,540.27% (something to think about: how might ZBRA shares perform over the next 20 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

More investment wisdom to ponder:
“When the public is most frightened, only the strong are left, and that’s when the market is in the best possible hands.” — Victor Niederhoffer