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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

Investors can learn a lot from Warren Buffett, whose above quote teaches the importance of thinking about investment time horizon, and asking ourselves before buying any given stock: can we envision holding onto it for years — even a decade-long holding period possibly?

Suppose a “buy-and-hold” investor was considering an investment into Inc (NASD: AMZN) back in 2014: back then, such an investor may have been pondering this very same question. Had they answered “yes” to a full decade-long investment time horizon and then actually held for these past 10 years, here’s how that investment would have turned out.

Start date: 03/27/2014


End date: 03/26/2024
Start price/share: $16.92
End price/share: $178.30
Starting shares: 591.02
Ending shares: 591.02
Dividends reinvested/share: $0.00
Total return: 953.78%
Average annual return: 26.54%
Starting investment: $10,000.00
Ending investment: $105,399.48

As shown above, the decade-long investment result worked out exceptionally well, with an annualized rate of return of 26.54%. This would have turned a $10K investment made 10 years ago into $105,399.48 today (as of 03/26/2024). On a total return basis, that’s a result of 953.78% (something to think about: how might AMZN 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:
“Taking risks is really the only way to consistently achieve above-average returns.” — Sam Zell