“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 Ansys Inc. (NASD: ANSS)? Today, we examine the outcome of a ten year investment into the stock back in 2009.
| Start date: | 03/26/2009 |
|
|||
| End date: | 03/25/2019 | ||||
| Start price/share: | $26.26 | ||||
| End price/share: | $177.44 | ||||
| Starting shares: | 380.81 | ||||
| Ending shares: | 380.81 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 575.70% | ||||
| Average annual return: | 21.05% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $67,588.88 | ||||
The above analysis shows the ten year investment result worked out exceptionally well, with an annualized rate of return of 21.05%. This would have turned a $10K investment made 10 years ago into $67,588.88 today (as of 03/25/2019). On a total return basis, that’s a result of 575.70% (something to think about: how might ANSS shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
Another great investment quote to think about:
“It is remarkable how much long-term advantage people like us have gotten by trying to be consistently not stupid, instead of trying to be very intelligent.” — Charlie Munger
