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“When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever.”

— Warren Buffett

One of the most important things investors can learn from Warren Buffett, is about how they approach their time horizon for an investment into a stock under consideration. Because immediately after buying shares of a given stock, investors will then be able to check on the day-to-day (and even minute-by-minute) market value. Some days the stock market will be up, other days down. These daily fluctuations can often distract from the long-term view. Today, we look at the result of a twenty year holding period for an investor who was considering Fiserv Inc (NYSE: FI) back in 2004, bought the stock, ignored the market’s ups and downs, and simply held through to today.

Start date: 06/18/2004


End date: 06/17/2024
Start price/share: $38.28
End price/share: $149.73
Starting shares: 261.23
Ending shares: 261.23
Dividends reinvested/share: $0.00
Total return: 291.14%
Average annual return: 7.05%
Starting investment: $10,000.00
Ending investment: $39,089.28

The above analysis shows the twenty year investment result worked out well, with an annualized rate of return of 7.05%. This would have turned a $10K investment made 20 years ago into $39,089.28 today (as of 06/17/2024). On a total return basis, that’s a result of 291.14% (something to think about: how might FI shares perform over the next 20 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

More investment wisdom to ponder:
“It’s not whether you’re right or wrong that’s important, but how much money you make when you’re right and how much you lose when you’re wrong.” — George Soros