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“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


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