“Someone’s sitting in the shade today because someone planted a tree a long time ago.”
— Warren Buffett
The Warren Buffett investment philosophy calls for a long-term investment horizon, where a twenty year holding period, or even longer, would fit right into the strategy. How would such a strategy have worked out for an investment into Advanced Micro Devices Inc (NASD: AMD)? Today, we examine the outcome of a twenty year investment into the stock back in 2005.
| Start date: | 03/14/2005 |
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| End date: | 03/12/2025 | ||||
| Start price/share: | $16.44 | ||||
| End price/share: | $100.79 | ||||
| Starting shares: | 608.27 | ||||
| Ending shares: | 608.27 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 513.08% | ||||
| Average annual return: | 9.49% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $61,334.51 | ||||
As we can see, the twenty year investment result worked out well, with an annualized rate of return of 9.49%. This would have turned a $10K investment made 20 years ago into $61,334.51 today (as of 03/12/2025). On a total return basis, that’s a result of 513.08% (something to think about: how might AMD 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:
“Markets are constantly in a state of uncertainty and flux and money is made by discounting the obvious and betting on the unexpected.” — George Soros
