“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 |
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| 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
