“Someone’s sitting in the shade today because someone planted a tree a long time ago.”
— 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 AutoZone, Inc. (NYSE: AZO)? Today, we examine the outcome of a twenty year investment into the stock back in 2002.
| Start date: | 05/13/2002 |
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| End date: | 05/10/2022 | ||||
| Start price/share: | $75.57 | ||||
| End price/share: | $1,950.89 | ||||
| Starting shares: | 132.33 | ||||
| Ending shares: | 132.33 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 2,481.57% | ||||
| Average annual return: | 17.65% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $258,360.09 | ||||
The above analysis shows the twenty year investment result worked out exceptionally well, with an annualized rate of return of 17.65%. This would have turned a $10K investment made 20 years ago into $258,360.09 today (as of 05/10/2022). On a total return basis, that’s a result of 2,481.57% (something to think about: how might AZO shares perform over the next 20 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
Another great investment quote to think about:
“Every once in a while, the market does something so stupid it takes your breath away.” — Jim Cramer
