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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 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


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