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— Warren Buffett

Long-term stock returns are often best understood through compounding rather than short-term price swings. In that context, Charles River Laboratories International Inc. (NYSE: CRL) provides a useful case study in how a buy-and-hold investment can develop over a 20-year period. Based on the figures below, a $10,000 investment in CRL made in early November 2006 and held through early November 2026 would have grown to $78,702.43, equal to a total return of 687.30% and an annualized return of 10.86%.

CRL 20-Year Return Details

CRL 20-Year Return Details
Start date:	11/03/2006	$10,000 11/03/2006   $78,702 11/02/2026
End date:	11/02/2026
Start price/share:	$43.00
End price/share:	$338.54
Starting shares:	232.56
Ending shares:	232.56
Dividends reinvested/share:	$0.00
Total return:	687.30%
Average annual return:	10.86%
Starting investment:	$10,000.00
Ending investment:	$78,702.43

What Drove the 20-Year CRL Return?

The result was driven entirely by share-price appreciation rather than income. Charles River Laboratories does not pay a dividend in this calculation, which is why starting and ending share counts are unchanged and dividends reinvested per share are listed at $0.00. That makes this return profile different from many long-term total-return examples, where a meaningful portion of compounding comes from dividend reinvestment.

CRL operates in research models and preclinical and nonclinical services used by biopharmaceutical and biotechnology companies. Over long periods, businesses tied to drug development tools and outsourced research can benefit from growth in pharmaceutical R&D activity, rising complexity in discovery programs, and the broader use of specialized external service providers. For shareholders, the central question has been whether operating growth and market positioning were strong enough to justify a much higher valuation over time. In this period, the answer was clearly yes.

Key Takeaways From the CRL Buy-and-Hold Outcome

• A $10,000 investment grew to $78,702.43 over 20 years.
• The total return was 687.30%.
• The annualized return was 10.86%.
• The gain came from capital appreciation, not dividends.
• The holding period highlights the effect of compounding across multiple market cycles.

Why Annualized Return Matters

Total return shows the full cumulative gain, but annualized return is usually the more useful comparison tool. It translates a multi-year outcome into an average yearly compounding rate, making it easier to evaluate one investment against another, or against broad equity benchmarks over similar periods. A 687.30% total return is striking, but the 10.86% annualized figure better captures the pace at which capital compounded.

That distinction also helps frame expectations. Long-term returns rarely arrive in a straight line. A stock can ultimately produce strong multi-decade gains while still experiencing sharp drawdowns, valuation resets, and periods of underperformance along the way. The CRL example underscores that point: the ending result is compelling, but the path to that result would have included multiple market environments and shifts in sentiment.

Bottom Line

Charles River Laboratories delivered a strong long-term stock return in this 20-year holding-period example. From November 2006 to November 2026, CRL turned a $10,000 investment into nearly $79,000, with no contribution from dividends. The case illustrates how sustained business performance and long-duration compounding can create substantial shareholder value even when returns are driven entirely by price appreciation.

[These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

One more piece of investment wisdom to leave you with:
“If you don’t study any companies, you have the same success buying stocks as you do in a poker game if you bet without looking at your cards.” — Peter Lynch