“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 two-decade holding period, or even longer, would fit right into the strategy. How would such a strategy have worked out for an investment into United Rentals Inc (NYSE: URI)? Today, we examine the outcome of a two-decade investment into the stock back in 2002.
| Start date: | 06/24/2002 |
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| End date: | 06/22/2022 | ||||
| Start price/share: | $21.47 | ||||
| End price/share: | $241.35 | ||||
| Starting shares: | 465.77 | ||||
| Ending shares: | 465.77 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 1,024.13% | ||||
| Average annual return: | 12.85% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $112,321.47 | ||||
The above analysis shows the two-decade investment result worked out quite well, with an annualized rate of return of 12.85%. This would have turned a $10K investment made 20 years ago into $112,321.47 today (as of 06/22/2022). On a total return basis, that’s a result of 1,024.13% (something to think about: how might URI shares perform over the next 20 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
Here’s one more great investment quote before you go:
“Value investing is at its core the marriage of a contrarian streak and a calculator.” — Seth Klarman
