“Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”
— Warren Buffett
The Warren Buffett investment philosophy calls for a long-term investment horizon, where a decade-long holding period, or even longer, would fit right into the strategy. How would such a strategy have worked out for an investment into Advanced Micro Devices Inc (NASD: AMD)? Today, we examine the outcome of a decade-long investment into the stock back in 2013.
| Start date: | 12/12/2013 |
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| End date: | 12/11/2023 | ||||
| Start price/share: | $3.69 | ||||
| End price/share: | $134.41 | ||||
| Starting shares: | 2,710.03 | ||||
| Ending shares: | 2,710.03 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 3,542.55% | ||||
| Average annual return: | 43.25% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $364,228.53 | ||||
The above analysis shows the decade-long investment result worked out exceptionally well, with an annualized rate of return of 43.25%. This would have turned a $10K investment made 10 years ago into $364,228.53 today (as of 12/11/2023). On a total return basis, that’s a result of 3,542.55% (something to think about: how might AMD 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:
“In the end, how your investments behave is much less important than how you behave.” — Benjamin Graham
