“Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”
— Warren Buffett
The Warren Buffett investment philosophy calls for a long-term investment horizon, where a ten year holding period, or even longer, would fit right into the strategy. How would such a strategy have worked out for an investment into lululemon athletica inc (NASD: LULU)? Today, we examine the outcome of a ten year investment into the stock back in 2014.
| Start date: | 09/26/2014 |
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| End date: | 09/25/2024 | ||||
| Start price/share: | $42.99 | ||||
| End price/share: | $259.74 | ||||
| Starting shares: | 232.61 | ||||
| Ending shares: | 232.61 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 504.19% | ||||
| Average annual return: | 19.69% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $60,395.75 | ||||
As shown above, the ten year investment result worked out exceptionally well, with an annualized rate of return of 19.69%. This would have turned a $10K investment made 10 years ago into $60,395.75 today (as of 09/25/2024). On a total return basis, that’s a result of 504.19% (something to think about: how might LULU shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
One more piece of investment wisdom to leave you with:
“In the short run, the market is a voting machine but in the long run, it is a weighing machine.” — Benjamin Graham
