“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: | 05/21/2009 |
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| End date: | 05/20/2019 | ||||
| Start price/share: | $28.11 | ||||
| End price/share: | $184.67 | ||||
| Starting shares: | 355.75 | ||||
| Ending shares: | 355.75 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 556.95% | ||||
| Average annual return: | 20.71% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $65,713.78 | ||||
The above analysis shows the ten year investment result worked out exceptionally well, with an annualized rate of return of 20.71%. This would have turned a $10K investment made 10 years ago into $65,713.78 today (as of 05/20/2019). On a total return basis, that’s a result of 556.95% (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.]
One more piece of investment wisdom to leave you with:
“It’s not always easy to do what’s not popular, but that’s where you make your money. Buy stocks that look bad to less careful investors and hang on until their real value is recognized.” — John Neff
