“When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever.”
— 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 Fiserv Inc (NYSE: FI)? Today, we examine the outcome of a two-decade investment into the stock back in 2005.
| Start date: | 04/04/2005 |
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| End date: | 04/01/2025 | ||||
| Start price/share: | $39.60 | ||||
| End price/share: | $222.01 | ||||
| Starting shares: | 252.53 | ||||
| Ending shares: | 252.53 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 460.63% | ||||
| Average annual return: | 9.00% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $56,070.58 | ||||
As we can see, the two-decade investment result worked out well, with an annualized rate of return of 9.00%. This would have turned a $10K investment made 20 years ago into $56,070.58 today (as of 04/01/2025). On a total return basis, that’s a result of 460.63% (something to think about: how might FI 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:
“Calling someone who trades actively in the market an investor is like calling someone who repeatedly engages in one-night stands a romantic.” — Warren Buffett
