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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 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


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