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A $10,000 investment in AMD in 2014 really worked

“Only buy something that you would really want to keep if the market were to close for ten years.”

– Warren Buffett

This is a great quote from Warren Buffett that emphasizes the importance of investment time horizon when considering an investment. Who knows what the stock market will do in the short term? Could the entire stock market fall out of bed a week or two after buying a particular stock? Very likely! If that happened, how would you react? It’s an excellent question to think about before you hit the buy button.

For investors with a multi-year time horizon, the most important thing is not what happens in the next two weeks, but what the long-term outcome will be. Today we look at the result achieved by investors of the year 2014, who considered an investment in shares of Advanced Micro Devices Inc (NASD: AMD) and decided on an investment horizon of ten years.

Starting date: 06/04/2014
$10,000

06/04/2014
$404,917

06/03/2024
End date: 06/03/2024
Starting price/share: $4.04
Final price/share: $163.55
Starting shares: 2,475.25
End shares: 2,475.25
Dividends reinvested/share: $0.00
Total refund: 3,948.27%
Average annual return: 44.76%
Initial investment: $10,000.00
End investment: $404,917.00

As we can see, the ten-year investment performance turned out exceptionally well, with an annualized return of 44.76%. This would have turned a $10,000 investment made 10 years ago into… $404,917.00 today (from 06/03/2024). On a total return basis, that’s a result of 3,948.27% (something to think about: how can AMD shares perform over the next one 10 years?). (These figures were calculated using the Dividend Channel DRIP Returns Calculator.)

Another piece of investment wisdom to leave you with:
“Finding the best person or organization to invest your money is one of the most important financial decisions you will ever make.” —Bill Gross

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