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“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 Align Technology Inc (NASD: ALGN)? Today, we examine the outcome of a ten year investment into the stock back in 2009.

Start date: 05/08/2009


End date: 05/07/2019
Start price/share: $12.54
End price/share: $325.51
Starting shares: 797.45
Ending shares: 797.45
Dividends reinvested/share: $0.00
Total return: 2,495.77%
Average annual return: 38.48%
Starting investment: $10,000.00
Ending investment: $259,572.04

As shown above, the ten year investment result worked out exceptionally well, with an annualized rate of return of 38.48%. This would have turned a $10K investment made 10 years ago into $259,572.04 today (as of 05/07/2019). On a total return basis, that’s a result of 2,495.77% (something to think about: how might ALGN 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:
“Value investing requires a great deal of hard work, unusually strict discipline, and a long-term investment horizon. Few are willing and able to devote sufficient time and effort to become value investors, and only a fraction of those have the proper mind-set to succeed.” — Seth Klarman