“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
