“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 decade-long holding period, or even longer, would fit right into the strategy. How would such a strategy have worked out for an investment into Carmax Inc. (NYSE: KMX)? Today, we examine the outcome of a decade-long investment into the stock back in 2015.
| Start date: | 08/06/2015 |
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| End date: | 08/05/2025 | ||||
| Start price/share: | $62.10 | ||||
| End price/share: | $56.10 | ||||
| Starting shares: | 161.03 | ||||
| Ending shares: | 161.03 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | -9.66% | ||||
| Average annual return: | -1.01% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $9,034.19 | ||||
As shown above, the decade-long investment result worked out poorly, with an annualized rate of return of -1.01%. This would have turned a $10K investment made 10 years ago into $9,034.19 today (as of 08/05/2025). On a total return basis, that’s a result of -9.66% (something to think about: how might KMX shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
More investment wisdom to ponder:
“The whole secret to winning big in the stock market is not to be right all the time, but to lose the least amount possible when you’re wrong.” — William O’Neil
