“When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever.”
— Warren Buffett
The Warren Buffett investment philosophy calls for a long-term investment horizon, where a two-decade holding period, or even longer, would fit right into the strategy. How would such a strategy have worked out for an investment into Charles River Laboratories International Inc. (NYSE: CRL)? Today, we examine the outcome of a two-decade investment into the stock back in 2004.
| Start date: | 08/23/2004 |
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| End date: | 08/21/2024 | ||||
| Start price/share: | $43.31 | ||||
| End price/share: | $204.38 | ||||
| Starting shares: | 230.89 | ||||
| Ending shares: | 230.89 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 371.90% | ||||
| Average annual return: | 8.06% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $47,160.24 | ||||
The above analysis shows the two-decade investment result worked out well, with an annualized rate of return of 8.06%. This would have turned a $10K investment made 20 years ago into $47,160.24 today (as of 08/21/2024). On a total return basis, that’s a result of 371.90% (something to think about: how might CRL shares perform over the next 20 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
Another great investment quote to think about:
“Confronted with a challenge to distill the secret of sound investment into three words, we venture the motto, Margin of Safety.” — Benjamin Graham
