“I buy on the assumption that they could close the market the next day and not reopen it for five years.”
— Warren Buffett
The Warren Buffett investment philosophy calls for a long-term investment horizon, where a five year 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 five year investment into the stock back in 2019.
| Start date: | 05/24/2019 |
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| End date: | 05/23/2024 | ||||
| Start price/share: | $1,052.19 | ||||
| End price/share: | $2,777.54 | ||||
| Starting shares: | 9.50 | ||||
| Ending shares: | 9.50 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 163.98% | ||||
| Average annual return: | 21.41% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $26,393.87 | ||||
The above analysis shows the five year investment result worked out exceptionally well, with an annualized rate of return of 21.41%. This would have turned a $10K investment made 5 years ago into $26,393.87 today (as of 05/23/2024). On a total return basis, that’s a result of 163.98% (something to think about: how might AZO shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
Here’s one more great investment quote before you go:
“When everyone is going right, look left.” — Sam Zell
