Carmax Investors Experienced 5.28% Returns For 10 Years

The above quote from Warren Buffett is timeless, and brings into focus the choice about time horizon that any investor should think about before buying a stock they are considering. Behind every stock is an actual business; what will that business look like over a decade-long period?

Today, let’s look backwards in time to 2013, and take a look at what happened to investors who asked that very question about Carmax Inc. (NYSE: KMX), by taking a look at the investment outcome over a decade-long holding period.

KMX 10-Year Return Details
Start date:	04/17/2013	$10,000 04/17/2013   $16,726 04/14/2023
End date:	04/14/2023
Start price/share:	$41.53
End price/share:	$69.46
Starting shares:	240.79
Ending shares:	240.79
Dividends reinvested/share:	$0.00
Total return:	67.25%
Average annual return:	5.28%
Starting investment:	$10,000.00
Ending investment:	$16,726.21

As shown above, the decade-long investment result worked out well, with an annualized rate of return of 5.28%. This would have turned a $10K investment made 10 years ago into $16,726.21 today (as of 04/14/2023). On a total return basis, that’s a result of 67.25% (something to think about: how might KMX shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

Here’s one more great investment quote before you go:
“He who earns and does not invest will have to work for the rest of his life.” — Debasish Mridha

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