Photo credit:

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

— Warren Buffett

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 five year period?

Today, let’s look backwards in time to 2019, and take a look at what happened to investors who asked that very question about O’Reilly Automotive, Inc. (NASD: ORLY), by taking a look at the investment outcome over a five year holding period.

Start date: 01/14/2019


End date: 01/11/2024
Start price/share: $341.15
End price/share: $944.61
Starting shares: 29.31
Ending shares: 29.31
Dividends reinvested/share: $0.00
Total return: 176.89%
Average annual return: 22.62%
Starting investment: $10,000.00
Ending investment: $27,689.89

The above analysis shows the five year investment result worked out exceptionally well, with an annualized rate of return of 22.62%. This would have turned a $10K investment made 5 years ago into $27,689.89 today (as of 01/11/2024). On a total return basis, that’s a result of 176.89% (something to think about: how might ORLY shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

One more piece of investment wisdom to leave you with:
“Ensure management’s interests are aligned with shareholders.” — Sam Zell