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“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


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