“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 O’Reilly Automotive, Inc. (NASD: ORLY)? Today, we examine the outcome of a twenty year investment into the stock back in 2002.
| Start date: | 07/08/2002 |
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| End date: | 07/05/2022 | ||||
| Start price/share: | $14.17 | ||||
| End price/share: | $647.51 | ||||
| Starting shares: | 705.72 | ||||
| Ending shares: | 705.72 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 4,469.58% | ||||
| Average annual return: | 21.05% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $456,825.65 | ||||
As shown above, the twenty year investment result worked out exceptionally well, with an annualized rate of return of 21.05%. This would have turned a $10K investment made 20 years ago into $456,825.65 today (as of 07/05/2022). On a total return basis, that’s a result of 4,469.58% (something to think about: how might ORLY 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:
“Anyone who is not investing now is missing a tremendous opportunity.” — Carlos Slim
