“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 AutoZone, Inc. (NYSE: AZO)? Today, we examine the outcome of a two-decade investment into the stock back in 2003.
| Start date: | 05/01/2003 |
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| End date: | 04/28/2023 | ||||
| Start price/share: | $80.96 | ||||
| End price/share: | $2,663.31 | ||||
| Starting shares: | 123.52 | ||||
| Ending shares: | 123.52 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 3,189.66% | ||||
| Average annual return: | 19.08% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $328,997.10 | ||||
The above analysis shows the two-decade investment result worked out exceptionally well, with an annualized rate of return of 19.08%. This would have turned a $10K investment made 20 years ago into $328,997.10 today (as of 04/28/2023). On a total return basis, that’s a result of 3,189.66% (something to think about: how might AZO shares perform over the next 20 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
More investment wisdom to ponder:
“The underlying principles of sound investment should not alter from decade to decade, but the application of these principles must be adapted to significant changes in the financial mechanisms and climate.” — Benjamin Graham
