“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 O’Reilly Automotive, Inc. (NASD: ORLY)? Today, we examine the outcome of a ten year investment into the stock back in 2011.
| Start date: | 08/12/2011 |
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| End date: | 08/11/2021 | ||||
| Start price/share: | $60.23 | ||||
| End price/share: | $601.18 | ||||
| Starting shares: | 166.03 | ||||
| Ending shares: | 166.03 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 898.14% | ||||
| Average annual return: | 25.85% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $99,788.23 | ||||
As we can see, the ten year investment result worked out exceptionally well, with an annualized rate of return of 25.85%. This would have turned a $10K investment made 10 years ago into $99,788.23 today (as of 08/11/2021). On a total return basis, that’s a result of 898.14% (something to think about: how might ORLY shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
Here’s one more great investment quote before you go:
“The most important three words in investing is: “I don’t know.†If someone doesn’t say that to you then they are lying.” — James Altucher
