If You Invested $100 in Southwest Airlines’ IPO, This Is How Much Money You'd Have Now

Holding stocks for the long term is a great way to build wealth. But how long is "long term"? Today, in this fast-paced world we live in, the average holding period for stocks is measured in months. If you are new to investing, you are probably wondering: Can holding for a stock for years really pay off?

Let's take a look at your returns if you bought the upstart Texas-based commuter-jet service, Southwest Airlines (NYSE: LUV) at its initial public offering in 1978 and held it for the next four decades, till today. But first, a little history and insight into why this airline has been so successful.

In June 1971, Southwest started service between the three largest cities in Texas -- Houston, Dallas, and San Antonio -- with three Boeing 737s, each with a seating capacity of 112. For the first four months of service, it averaged only 16 passengers per flight, about half of the number required to break even. But management kept the focus on its target market, and in 1973, the company turned profitable.

Source Fool.com