“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 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 AutoZone, Inc. (NYSE: AZO)? Today, we examine the outcome of a two-decade investment into the stock back in 2006.
| Start date: | 02/21/2006 |
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| End date: | 02/17/2026 | ||||
| Start price/share: | $98.18 | ||||
| End price/share: | $3,742.00 | ||||
| Starting shares: | 101.85 | ||||
| Ending shares: | 101.85 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 3,711.37% | ||||
| Average annual return: | 19.96% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $381,018.16 | ||||
As shown above, the two-decade investment result worked out exceptionally well, with an annualized rate of return of 19.96%. This would have turned a $10K investment made 20 years ago into $381,018.16 today (as of 02/17/2026). On a total return basis, that’s a result of 3,711.37% (something to think about: how might AZO shares perform over the next 20 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
One more piece of investment wisdom to leave you with:
“A 10% decline in the market is fairly common, it happens about once a year. Investors who realize this are less likely to sell in a panic, and more likely to remain invested, benefitting from the wealthbuilding power of stocks.” — Christopher Davis
