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“Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”

— Warren Buffett

One of the most important things investors can learn from Warren Buffett, is about how they approach their time horizon for an investment into a stock under consideration. Because immediately after buying shares of a given stock, investors will then be able to check on the day-to-day (and even minute-by-minute) market value. Some days the stock market will be up, other days down. These daily fluctuations can often distract from the long-term view. Today, we look at the result of a decade-long holding period for an investor who was considering O’Reilly Automotive, Inc. (NASD: ORLY) back in 2013, bought the stock, ignored the market’s ups and downs, and simply held through to today.

Start date: 07/25/2013


End date: 07/24/2023
Start price/share: $122.63
End price/share: $957.98
Starting shares: 81.55
Ending shares: 81.55
Dividends reinvested/share: $0.00
Total return: 681.20%
Average annual return: 22.82%
Starting investment: $10,000.00
Ending investment: $78,151.17

The above analysis shows the decade-long investment result worked out exceptionally well, with an annualized rate of return of 22.82%. This would have turned a $10K investment made 10 years ago into $78,151.17 today (as of 07/24/2023). On a total return basis, that’s a result of 681.20% (something to think about: how might ORLY shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

One more investment quote to leave you with:
“As in roulette, same is true of the stock trader, who will find that the expense of trading weights the dice heavily against him.” — Benjamin Graham