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“I buy on the assumption that they could close the market the next day and not reopen it for five years.”

— Warren Buffett

The Warren Buffett investment philosophy calls for a long-term investment horizon, where a five 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 five year investment into the stock back in 2018.

Start date: 02/01/2018


End date: 01/31/2023
Start price/share: $764.38
End price/share: $2,438.85
Starting shares: 13.08
Ending shares: 13.08
Dividends reinvested/share: $0.00
Total return: 219.06%
Average annual return: 26.12%
Starting investment: $10,000.00
Ending investment: $31,909.49

The above analysis shows the five year investment result worked out exceptionally well, with an annualized rate of return of 26.12%. This would have turned a $10K investment made 5 years ago into $31,909.49 today (as of 01/31/2023). On a total return basis, that’s a result of 219.06% (something to think about: how might AZO shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

Here’s one more great investment quote before you go:
“Only when the tide goes out do you discover who’s been swimming naked.” — Warren Buffett